Walking the Walk: Selective Hedging and Inside Ownership

2015 ◽  
Author(s):  
HHkan Jankensggrd
Keyword(s):  
Inside Ownership

Impact of Dividend Tax Change on the Payout Policy of Indian Companies

2019 ◽  
Vol 20 (5) ◽  
pp. 1282-1291
Author(s):  
Sanjay Dhamija ◽  
Ravinder Kumar Arora
Keyword(s):  
Negative Impact ◽  
Payout Policy ◽  
Tax Law ◽  
Dividend Payout ◽  
Inside Ownership ◽  
Regulatory Changes ◽  
Before And After ◽  
The Government ◽  
The Impact ◽  
Dividend Tax

The article examines the impact of regulatory changes in the tax on dividends on the payout policy of Indian companies. The tax law was recently amended to levy tax on dividends received by large shareholders. As the promoters group is the largest shareholder, this is expected to have a negative impact on the payout policy of companies. Furthermore, companies with larger promoter holdings have a higher motivation to reduce their payout. The study covers 370 companies present in the BSE 500 Index and compares the dividend payout of the companies before and after the introduction of tax levy. The study finds that the newly introduced tax indeed caused a shift in the dividend policy of companies, particularly those companies which have high levels of inside ownership. The findings have significant implications for companies, investors and the government.

Determinants of the Choice between Alternative Share Repurchase Methods

1997 ◽  
Vol 12 (2) ◽  
pp. 101-124 ◽  
Author(s):  
Nikos Vafeas
Keyword(s):  
Cash Flow ◽  
Free Cash Flow ◽  
Share Repurchase ◽  
Open Market ◽  
Empirical Examination ◽  
Tender Offer ◽  
Managerial Entrenchment ◽  
Inside Ownership ◽  
Information Signaling ◽  
Flow Information

This study provides an empirical examination of the determinants of the choice between alternative share repurchase methods. It is shown that the likelihood of selecting a self-tender offer over an open market share repurchase increases with the repurchasing firm's agency costs of free cash flow, inside ownership percentage, leverage, prebuyback stock performance, and the magnitude of cash involved in the transaction. The empirical evidence is consistent with the free cash flow, information-signaling, and managerial entrenchment hypotheses contributing toward explaining the choice of repurchase method among firms. The study concludes that the two repurchase methods appear to serve different purposes for the repurchasing firm.

scholarly journals Mandatory Disclosure Quality, Inside Ownership, and Cost of Capital

2014 ◽  
Vol 24 (1) ◽  
pp. 1-29 ◽  
Author(s):  
John E. Core ◽  
Luzi Hail ◽  
Rodrigo S. Verdi
Keyword(s):  
Cost Of Capital ◽  
Mandatory Disclosure ◽  
Disclosure Quality ◽  
Inside Ownership

Client Importance and Earnings Management: The Moderating Role of Audit Committees

2011 ◽  
Vol 30 (3) ◽  
pp. 125-156 ◽  
Author(s):  
Vineeta D. Sharma ◽  
Divesh S. Sharma ◽  
Umapathy Ananthanarayanan
Keyword(s):  
Best Practices ◽  
Earnings Management ◽  
Financial Reporting ◽  
Audit Committee ◽  
Positive Association ◽  
Auditor Independence ◽  
Economic Importance ◽  
Audit Committees ◽  
Inside Ownership

SUMMARY This study provides empirical evidence on how the association between the economic importance of a client to the auditor and earnings management is moderated by the audit committee. We employ city office-level client importance fee-based measures, both performance-adjusted discretionary total and current accruals as proxies for earnings management, and a measure of audit committee best practices. We document a positive association between client importance and our two proxies for earnings management. This association is stronger for income-increasing earnings management. However, the association between client importance and earnings management is more pronounced when the audit committee does not meet best practices. We infer that the economic importance of a client appears to threaten auditor independence and thus the quality of financial reporting, but only when the audit committee exhibits characteristics associated with the provision of weak oversight. We also find that the association between client importance and earnings management is conditional on inside ownership, growth, leverage, and firm size, which are moderated by the audit committee. This study is the first to demonstrate that audit committees can moderate threats to auditor independence thus protecting the quality of financial reporting. The study discusses potential implications for policy making and empirical research.

scholarly journals Ownership structure and real earnings management: An empirical study on emerging economy

2021 ◽  
Vol 18 (2) ◽  
pp. 74-89
Author(s):  
Nitai Chandra Debnath ◽  
Suman Paul Chowdhury ◽  
Safaeduzzaman Khan
Keyword(s):  
Earnings Management ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Foreign Ownership ◽  
Least Square ◽  
Real Earnings Management ◽  
Inside Ownership ◽  
Price Discounts ◽  
Least Square Regression

We observe the association amid ownership structure and real earnings management in Bangladesh. Our study takes 2195 firm-year observations which are listed on the Dhaka Stock Exchange over the period of 2000-2017. The outcome of the panel least square regression indicates that inside ownership, as well as foreign ownership, is inversely related to real earnings management, whereas institutional ownership is positively related to real earnings management. In particular, firms tend to reduce discretionary expenses to manage earnings if the magnitude of inside ownership is low. In contrast to that, when firms are characterized by more institutional ownership, they are more inclined towards real earnings management through additional price discounts, offering a more friendly credit facility, and lowering discretionary expense. This result is consistent with previous findings. Nevertheless, if firms encounter an absence of foreign ownership, they prefer to manage earnings through operating at over-production levels as well as lowering discretionary expenses. Additionally, we find that corporate governance is playing a beneficial role in limiting real earnings management

scholarly journals Ownership, control and performance in the most actively traded companies on Stockholm stock exchange. A comparison between 1999 and 2001

2006 ◽  
Vol 4 (1) ◽  
pp. 146-155 ◽  
Author(s):  
Per-Olof Bjuggren ◽  
Helena Bohman
Keyword(s):  
Ownership Structure ◽  
Firm Value ◽  
Stock Price ◽  
Stock Exchange ◽  
Ownership Concentration ◽  
Inside Ownership ◽  
The Subject ◽  
And Performance ◽  
The Relationship ◽  
Ownership Control

The relationship between ownership, control and firm value is the subject matter studied. The study is essentially empirical. Data about the most actively traded non-financial companies on the Stockholm Stock Exchange is used. A comparison is made between the years 1999 and 2001. What do the relationships between firm value and different ownership characteristics like ownership concentration, foreign ownership and inside ownership look like? Do these characteristics differ between the booming year of 1999 and the recession year of 2001? Is there a relation between stock price and ownership structure? These are the three main questions addressed in the study.

Organisational change in agricultural transition

2002 ◽  
Vol 52 (1) ◽  
pp. 25-55 ◽  
Author(s):  
M. Brem
Keyword(s):  
Quantitative Analysis ◽  
Transaction Costs ◽  
Switching Costs ◽  
Driving Forces ◽  
Organisational Change ◽  
Formal Property ◽  
The Czech Republic ◽  
Inside Ownership ◽  
Qualitative Case Studies ◽  
Original Size

This article seeks to contribute to our understanding of farm restructuring in transition by trying to identify driving forces behind organisational change in agriculture. It focuses on the stakeholders’ trade-off between internal transaction costs and switching costs. The article introduces factors determining the level of these two types of costs, such as the original size of the firm, inside-ownership and the type of production for internal transaction costs, and the remaining asset specificity after establishing the formal property rights for switching costs. The theoretical model is tested by data from a recent survey in two regions of the Czech Republic with both qualitative and quantitative analysis. The quantitative analysis characterises the downsizing process of distinguishable restructuring paths of 87 farms. Mechanisms of individual stakeholders’ redeployment decisions are elaborated on the basis of five qualitative case studies. The article shows perspectives of further farm restructuring in European transition countries.

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