Insider Ownership and Stock Price Performance: How Greater Concentration of Management Ownership Affects Returns Across Extreme Levels of Firm Value*

2008 ◽  
Author(s):  
Robert Houmes ◽  
Bob Boylan ◽  
Denise Dickins
Keyword(s):  
Firm Value ◽  
Stock Price ◽  
Insider Ownership ◽  
Management Ownership ◽  
Price Performance

scholarly journals The Determinants of the Stock Price Performance of Analyst Recommendations

2019 ◽  
Vol 15 (11) ◽  
pp. 25
Author(s):  
Yaling Lin ◽  
Liang-Chien Lee ◽  
Tsung-Li Chi ◽  
Chen-Chang Lo ◽  
Wai-Shen Chung
Keyword(s):  
Stock Price ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Market Model ◽  
Firm Characteristics ◽  
Cross Sectional ◽  
Insider Ownership ◽  
Taiwan Stock Exchange ◽  
Price Performance ◽  
Abnormal Performance

This study examines the cross-sectional determinants of the price reaction to analysts’ recommendations disseminated through various type of media and for firms listed in Taiwan stock markets. We measure abnormal returns using the market model of event study. Based on the type of media (traditional media/social media) and the type of exchange (Taiwan Stock Exchange (TWSE)/Taipei Exchange (TPEx)), we classify the combined sample observations into four samples and run quantile regressions to investigate whether the relation will be uniform across various quantile levels. Our results show that the relation between firm characteristics and cumulative abnormal returns is not homogeneous across various quantiles of abnormal returns. Our evidence indicates that in general the relation tends to be stronger for firms at higher performance quantile levels and tends to be more pronounced for TWSE firms. The strongest relation is found for the Traditional/TWSE sample, where the abnormal returns are positively related to insider ownership and prior-period earnings, and negatively related to institutional shareholding and price-to-book ratio for firms in the highest abnormal performance quantile.

scholarly journals Faktor-Faktor Yang Mempengaruhi Kinerja Harga Saham Dengan CSR Sebagai Variabel Pemoderasi

2018 ◽  
Vol 16 (2) ◽  
pp. 185
Author(s):  
Cornelia Erviana P. W. ◽  
Andreas Lako
Keyword(s):  
Corporate Social Responsibility ◽  
Financial Performance ◽  
Stock Returns ◽  
Firm Value ◽  
Stock Price ◽  
Stock Return ◽  
Stock Exchange ◽  
Financial Assets ◽  
Price Performance ◽  
Corporate Social

This study analyzes the effect of financial performance and firm value on stock price performance with corporate social responsibility (CSR) performance as a moderating variable. This research is important because before investing investors will do the valuation in advance, this is in line with the theory of valuation which states that the valuation is done on assets invested, where the assets invested can be in the form of real assets and financial assets (Manurung, 2011). Financial assets in this case are stocks. Assessment of stock price movements in a stock exchange is influenced by several factors, both internal and external factors (Lako, 2004). The main focus in this research is on internal factors of company especially financial performance (QR, DAR, ROA, and TATO), and firm value (PBV). Stock price performance is proxied with stock return and CSR performance is proxied with CSR cost ratio. By using sample of manufacturing company listed in Indonesia Stock Exchange (IDX) during 2010-2015, this research obtained result indicate that (1) TATO and ROA have a significant positive effect to stock return, (2) DAR and QR have positive and not significant On stock returns, (3) the value of companies proxied by PBV has a negative and insignificant effect on stock returns. While the influence of CSR performance as a moderating variable can only moderate the TATO relationship to stock returns. Abstrak Penelitian ini menganalisis pengaruh kinerja keuangan dan nilai perusahaan terhadap kinerja harga saham dengan kinerja corporate social responsibility (CSR) sebagai variabel pemoderasi. Penelitian ini penting dilakukan karena sebelum berinvestasi investor akan melakukan valuasi terlebih dahulu,hal ini sejalan dengan teori valuasi yang menyatakan bahwa valuasi dilakukan atas asset yang diinvestasikan, dimana aset yang diinvestasikan bisa berupa aset riil dan aset finansial (Manurung,2011). Aset finansial dalam hal ini adalah saham.Penilaian pergerakan harga saham di suatu bursa efek dipengaruhi oleh beberapa faktor, baik faktor internal maupun eksternal (Lako, 2004). Fokus utama dalam penelitian ini adalah pada faktor internal perusahaan khususnya kinerja keuangan (QR, DAR, ROA, dan TATO), dan nilai perusahaan (PBV). Kinerja harga saham diproksikan dengan return saham dan kinerja CSR diproksikan dengan rasio biaya CSR. Dengan menggunakan sampel perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia (BEI) selama 2010-2015, penelitian ini memperoleh hasil yang menunjukkan bahwa (1) TATO dan ROA berpengaruh signifikan positif terhadap return saham, (2) DAR dan QR berpengaruh positif dan tidak signifikan terhadap return saham, (3) nilai perusahaan yang diproksikan dengan PBV berpengaruh negatif dan tidak signifikan terhadap return saham. Sedangkan pengaruh kinerja CSR sebagai variabel pemoderasi hanya mampu memoderasi hubungan TATO terhadap return saham

scholarly journals Managerial ownership and firm performance in Thailand: An empirical analysis

2010 ◽  
Vol 8 (1) ◽  
pp. 369-378
Author(s):  
Wanachan Singhchawla ◽  
Robert Evans ◽  
John Evans
Keyword(s):  
Firm Performance ◽  
Firm Size ◽  
Firm Value ◽  
Negative Impact ◽  
The Other ◽  
Managerial Ownership ◽  
Substantial Fraction ◽  
Insider Ownership ◽  
Management Ownership ◽  
Study Support

This study investigates whether managerial share ownership serves to enhance or detract from firm performance in listed companies in Thailand. The convergence-of-interest hypothesis asserts that firm value increases as management ownership rises. On the other hand, when managers own a substantial fraction of the firm shares, then voting power or other influence may satisfy other non-value- maximizing objectives without endangering other positions. This gives rise to the entrenchment hypothesis, which suggests that excessive insider ownership has a negative impact on corporate performance. The results of this study support both the alignment and entrenchment efforts and therefore the existence of a non-linear relationship between firm performance and managerial ownership. Firm size and industry are also shown to impact significantly on firm performance in Thailand.

scholarly journals Long-run performance of initial public offerings in the German stock market: The family business experience 1977 to 1998

2007 ◽  
Vol 4 (4) ◽  
pp. 357-396
Author(s):  
Jan Kuklinski ◽  
Dirk Schiereck
Keyword(s):  
Initial Public Offerings ◽  
Firm Value ◽  
Stock Price ◽  
Family Firms ◽  
Equity Capital ◽  
Public Offerings ◽  
Price Performance ◽  
Long Run ◽  
Neuer Markt ◽  
The Impact

This paper investigates the long-run performance of initial public offerings of 174 family firms floated in Germany between 1977 and 1998. Family businesses typically come closest to the ideal of non- separation of ownership from control. The fundamental change in ownership structure induced by the flotation represents a change in the governance of the firm as for the first time dispersed outsiders buy equity capital. An examination of the stock price performance allows drawing conclusions to explain the impact of governance changes on firm value. A prediction of stock price performance spans two theories: Advantages of modern corporations where management and ownership are separated are cut short by the so-called principal-agent problem. Managers – the agents – could take actions against the interest of shareholders – the principals. Agency problems in closely-held family firms should be less predominant. On the other hand, the rent-protection theory predicts that family owners have incentives to skim private benefits at the expense of firm performance. Depending on the extent of these two effects, family-owned firms should out-, respectively underperform the market. The empirical evidence seems to support the private benefit hypothesis: 3 years after the listing the market-adjusted return was on average –25.31% compared to a broad index. The underperformance increased to –53.50% after 60 months. Even when excluding potential new economy and Neuer Markt biases, the underperformance is a statistically significant –10.50% and –50.13%, respectively.

Employee Stock Ownership Plan, Board Structure, and Firm Value: Evidence from Taiwan

2018 ◽  
Keyword(s):  
Financial Planning ◽  
Firm Value ◽  
Stock Price ◽  
Stock Ownership ◽  
Board Structure ◽  
Institutional Holdings ◽  
Employee Stock Ownership ◽  
Price Performance ◽  
Personal Financial Planning ◽  
Employee Stock Ownership Plan

The authors explore the effect of an employee stock ownership plan on firm value and examine the following important findings. First, they reveal that a firm with better corporate governance, such as a higher directors’ holding ratio, higher institutional holding ratio, and small board size will have better stock price performance resulting in the enhancement of firm value. Second, firms with higher institutional holdings that are implementing an ESOP actually might not enhance firm value, compared to firms with higher institutional holdings that do not implement an ESOP; this may be the result of interest and influence by institutional investors who are likely to be affected by the ESOP. The authors explain that understanding these results may be useful for investors in personal financial planning and wealth management in terms of screening investing targets.

Pengaruh Intellectual Capital, Profitabilitas, Dan Leverage Terhadap Nilai Perusahaan Pada Perusahaan Sektor Properti, Real Estate, Dan Konstruksi Bangunan Yang Terdaftar Di Bursa Efek Indonesia

2018 ◽  
Vol 9 (2) ◽  
pp. 1-14
Author(s):  
Haryani Chandra ◽  
Hamfri Djajadikerta
Keyword(s):  
Real Estate ◽  
Intellectual Capital ◽  
Firm Value ◽  
Stock Price ◽  
Stock Exchange ◽  
Value Added ◽  
Simple Random Sampling ◽  
Positive Influence ◽  
Public Companies ◽  
Equity Ratio

Go public companies have main purpose to increase firm value consistently. Increased firm value can reflect the increase in the prosperity of shareholders. The purpose of this research is to determine whether intellectual capital, profitability, and leverage have an influence on firm value. This research is expected to help companies to determine the focus on managing the factors those have an influence towards firm value and help investors and potential investors to make investment decisions. This research is conducted on firms listed in property, real estate, and building construction sector in Indonesia Stock Exchange during 2010 until 2015. Samples are selected by simple random sampling method. The research method used is the regression analysis. Intellectual capital is measured by value added intellectual coefficient (VAIC), profitability is measured by return on assets (ROA), leverage is measured by debt- to-equity ratio (DER), and firm value is measured by the year-end closing stock price. The results showed that intellectual capital, profitability, and leverage have partially a significant positive influence on firm value. In addition, intellectual capital, profitability, and leverage have significant influence simultaneously on firm value. Keywords: firm value, intellectual capital, leverage, profitability

Debt Structure Adjustments and Long-run Stock Price Performance

2000 ◽  
Author(s):  
Sudip Datta ◽  
Mai E. Iskandar-Datta ◽  
Kartik Raman
Keyword(s):  
Stock Price ◽  
Debt Structure ◽  
Price Performance ◽  
Long Run

scholarly journals Building stock market resilience through digital transformation: using Google trends to analyze the impact of COVID-19 pandemic

2020 ◽  
Vol 14 (1) ◽  
Author(s):  
Ding Ding ◽  
Chong Guan ◽  
Calvin M. L. Chan ◽  
Wenting Liu
Keyword(s):  
Stock Market ◽  
Stock Prices ◽  
Stock Price ◽  
Digital Transformation ◽  
Google Trends ◽  
Building Stock ◽  
Market Sentiment ◽  
Price Performance ◽  
Novel Coronavirus ◽  
The Impact

Abstract As the 2019 novel coronavirus disease (COVID-19) pandemic rages globally, its impact has been felt in the stock markets around the world. Amidst the gloomy economic outlook, certain sectors seem to have survived better than others. This paper aims to investigate the sectors that have performed better even as market sentiment is affected by the pandemic. The daily closing stock prices of a total usable sample of 1,567 firms from 37 sectors are first analyzed using a combination of hierarchical clustering and shape-based distance (SBD) measures. Market sentiment is modeled from Google Trends on the COVID-19 pandemic. This is then analyzed against the time series of daily closing stock prices using augmented vector autoregression (VAR). The empirical results indicate that market sentiment towards the pandemic has significant effects on the stock prices of the sectors. Particularly, the stock price performance across sectors is differentiated by the level of the digital transformation of sectors, with those that are most digitally transformed, showing resilience towards negative market sentiment on the pandemic. This study contributes to the existing literature by incorporating search trends to analyze market sentiment, and by showing that digital transformation moderated the stock market resilience of firms against concern over the COVID-19 outbreak.

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