Are Share Price Levels Informative? Evidence from the Ownership, Pricing, Turnover, and Performance of IPO Firms

2003 ◽  
Author(s):  
Chitru S. Fernando ◽  
Srinivasan Krishnamurthy ◽  
Paul A. Spindt
Keyword(s):  
Share Price ◽  
Price Levels ◽  
And Performance

Are share price levels informative? Evidence from the ownership, pricing, turnover and performance of IPO firms

2004 ◽  
Vol 7 (4) ◽  
pp. 377-403 ◽  
Author(s):  
Chitru S. Fernando ◽  
Srinivasan Krishnamurthy ◽  
Paul A. Spindt
Keyword(s):  
Share Price ◽  
Price Levels ◽  
And Performance

The rise of shareholder activism—what you need to know

2015 ◽  
Vol 55 (2) ◽  
pp. 448
Author(s):  
Mark Malinas
Keyword(s):  
Oil And Gas ◽  
Shareholder Activism ◽  
Share Price ◽  
Strategic Direction ◽  
The Us ◽  
Dramatic Rise ◽  
Under Performing ◽  
And Performance ◽  
Oil And Gas Companies ◽  
Oil And Gas Sector

The past few years have seen a dramatic rise in shareholder activism in Europe and the US and it is a trend becoming more common in Australia. Companies operating in the oil and gas sector have been subject to particular attention and there are a growing number of examples of this in Australia. The targets of shareholder activism range in size and performance, but are often companies with perceived board weakness, those that are considered to adhere to outdated corporate governance, those whose strategic direction is in question or those that have an under-performing share price, though other factors can also be relevant. Using these issues or concerns as a pretext, activists are increasingly focused on using tactics that allow them to exert control or exercise influence to realise returns or agitate for change in companies that: have significant assets (such as oil and gas reserves) relative to their market value; have high costs, large capital expenditures and long revenue generation lead time (such as exploration projects); or, operate in low growth or fluctuating markets (such as with the price of oil and gas). Unsurprisingly, the oil and gas sector is being increasingly seen by certain funds and investors as fertile ground for shareholder activism. The Australian legal landscape also presents shareholders with a platform from which to exert influence. For instance: shareholders are able to requisition general meetings (and resolutions to be put to those meetings) if they hold sufficient shares and put the entire board up for re-election following the introduction of the two strikes rule; and, directors are required to adhere to statutory and common law duties in responding to shareholders. Shareholder activist campaigns are often played out in public and can be highly disruptive to companies’ operations. Accordingly, directors and senior management of oil and gas companies should be aware of shareholder activism in Australia and, in the broader interests of all shareholders and their company, consider how they should respond or be ready to respond. This may be done through various processes, including testing the company’s perceived weaknesses and addressing them and having a plan to address activism should it arise.

ASIAN AMERICAN-FOUNDED VENTURES IN SILICON VALLEY: CHALLENGES, STRATEGIC PARTNERSHIP, AND PERFORMANCE

2010 ◽  
Vol 18 (04) ◽  
pp. 355-375
Author(s):  
DAVID Y. CHOI ◽  
DONG CHEN ◽  
WOO JIN LEE
Keyword(s):  
Initial Public Offering ◽  
Asian American ◽  
Silicon Valley ◽  
Share Price ◽  
Strategic Partnership ◽  
Strategic Partnerships ◽  
Ipo Performance ◽  
And Performance ◽  
Public Offering ◽  
The Impact

This paper examines the performance of Silicon Valley ventures with Asian-American founding teams. We review some challenges faced by these ventures, compare their performance with that of other ventures, and analyze the impact of strategic partnerships on their performance. Our results indicate that firms founded by Asian American entrepreneurs tend to require more time to reach initial public offering (IPO) status than do other ventures in Silicon Valley. Our results further show that, despite needing this extra time, Asian American-founded ventures significantly outperformed their counterparts in 12-month post-IPO share price gain. This superior short-term post-IPO performance suggests that Asian American firms, particularly those that lacked relationships with U.S.-based strategic investors, might have been undervalued prior to and at IPO.

scholarly journals Strategy and performance of South African listed family companies

1980 ◽  
Vol 11 (1) ◽  
pp. 5-8
Author(s):  
Rob Mackintosh
Keyword(s):  
Organizational Development ◽  
South African ◽  
Stock Exchange ◽  
Share Price ◽  
Business Policy ◽  
Johannesburg Stock Exchange ◽  
Professional Management ◽  
Small Base ◽  
And Performance ◽  
Business Family

An impressive body of theory on organizational development, performance, strategy and structure has developed over the last two decades. Much of what we know stems from direct observation (usually in the form of case-studies), first-hand experience, and common sense. Yet surprisingly little attempt has been made to test the theories and provide an empirical base with which to confirm or reject the theories. This study suggests that the traditional theories of organizational development are vindicated - that firms develop from entrepreneurial, family companies in the first stage to professional management in later stages. Furthermore, an analysis of share-price movements suggests that single business family companies on the Johannesburg Stock Exchange do not perform as well as those which adopt more diversified strategies. This study builds on the small base of previous research, and hopefully makes a contribution to our knowledge both in the academic/teaching sphere of business policy, and in the area of organizational change.'n Indrukwekkende versameling van teorie oor organisasieontwikkeling, en die prestasie, strategie en struktuur van ondernemings is oor die afgelope twee dekades ontwikkel. Ons kennis het ontstaan uit direkte waarneming (gewoonlik in die vorm van gevallestudies), eie ervaring, en gesonde verstand. Tog is min pogings aangewend om die teoriee te toets en 'n empiriese basis te skep waarvolgens die teoriee bevestig of verwerp kan word. Hierdie studie stel voor dat die tradisionele teoriee van organisasie-ontwikkeling geregverdig is - dat firmas van entrepreneuriele familie-ondernemings in die eerste stadium, tot professionele bestuur in latere stadia ontwikkel. Verder dui 'n ontleding van aandeleprys-bewegings aan dat enkelbedryf familiemaatskappye op die Johannesburgse Aandelebeurs nie so goed vertoon as die wat meer gediversifiseerde strategiee aanvaar het nie. Hierdie studie bou voort op die klein basis van vorige navorsing, en maak hopelik 'n bydrae tot kennis sowel in die akademiese/onderrigsfeer van bestuursbeleid, as op die gebied van organisasieverandering.

AN ASSESSMENT OF THE ROLE OF ENVIRONMENTAL REPORTING IN SUPPORTING SHARE VALUES IN FTSE100 COMPANIES

2003 ◽  
Vol 05 (02) ◽  
pp. 149-182 ◽  
Author(s):  
JAMES DANIEL WALMSLEY ◽  
ALAN BOND
Keyword(s):  
Financial Services ◽  
Stock Exchange ◽  
Temporal Trends ◽  
Share Price ◽  
Environmental Reporting ◽  
Price Performance ◽  
And Performance ◽  
Corporate Environmental Reporting ◽  
The Uk ◽  
Share Value

This paper explores the relationship between corporate environmental reporting and share price performance amongst companies in two industry groups listed on the UK FTSE (Financial Times Stock Exchange) 100 as of the 30th July 2001. The hypothesis tested is that the production of good quality corporate environmental reports (CERs) benefits company share price, by demonstrating to investors an awareness of risk, liability, legislation and opportunities as well as providing a collection of policy, impacts, temporal trends, targets and commitment. Some other studies in this area have concluded that a positive relationship exists between corporate environmental management and performance (including environmental reporting) and share value. The results of this paper differ however, and show that on average, the production of environmental reports by FTSE100 companies (in the energy and utilities and financial services sectors) has not lead to improved historical share price performance when compared to non-reporting companies, although there is strong evidence for reduced volatility of share price. Results for sector performance varied from those obtained from individual company level. The two companies assessed as producing the best reports in their industry sector outperformed both the FTSE100 benchmark, and many of their competitors for the five-year period studied. Whilst there are many benefits to be gained by listed companies through environmental reporting, such as enhancing image and improving public and investor opinion, a positive attitude to the environment, as demonstrated through environmental reporting, can provide an indication of a truly strategic approach to business. Yet there are so many factors involved, it is not possible from the results to conclude that environmental reporting supports share value.

scholarly journals A Systematic Review of Relationship between Financial Sustainability and Share Price

2020 ◽  
Vol 18 (2) ◽  
pp. 131-146
Author(s):  
Suresh Ramakrishnan ◽  
◽  
Hamad Raza ◽  
Syed Muhammad Ahmad Hassan Gillani ◽  
Humara Ahmad
Keyword(s):  
Systematic Review ◽  
Shareholder Wealth ◽  
Share Price ◽  
Financial Sustainability ◽  
Value Drivers ◽  
Financial Difficulties ◽  
Financial Growth ◽  
Critical Problems ◽  
The Subject ◽  
And Performance

One of the most critical problems faced by companies in today's corporate universe world is financial sustainability, which can influence firms' overall profitability, efficiency and performance. Financial growth is thought to be one of the most important value drivers of equity shares, requiring adequate control. Since the issues of sustainable financial growth in the contemporary market are gradually becoming severe, i.e., if businesses have unrestrained income growth, this can lead businesses to major financial difficulties. Therefore, this research aims to determine the effect of financial sustainability on the share price. While financial sustainability is a less developed and new topic in the subject of corporate finance, but it is now becoming increasingly important. The present study explores systematically the relationship between financial sustainability and share price in 16 related articles published between 2011 to 2020. The findings reveal that the interest in the subject of financial sustainability and its impact on shareholder wealth is growing. This paper attempts to classify and cover the systematic review by critically evaluating the findings through analyzing the selected articles, which highlights the emerging business-related theories of financial sustainability and sets out a range of directions for future studies

Share Price Levels and Beta

1979 ◽  
Vol 8 (1) ◽  
pp. 60 ◽  
Author(s):  
Sasson Bar-Yosef ◽  
Lawrence D. Brown
Keyword(s):  
Share Price ◽  
Price Levels

scholarly journals RELEVANCE OF ACCOUNTING INFORMATION TOWARDS SHARE PRICES OF JAKARTA ISLAMIC INDEX (JII) LISTED COMPANIES

2021 ◽  
Vol 5 (1) ◽  
Author(s):  
Fitri Utami ◽  
Slamet Haryono ◽  
Abdurrahman Niarman
Keyword(s):  
No Value ◽  
Stock Prices ◽  
Value Relevance ◽  
Accounting Information ◽  
Share Price ◽  
Return On Equity ◽  
Share Prices ◽  
Panel Data Regression ◽  
Data Regression ◽  
And Performance

Accounting information has an important role in describing the condition and performance of a company. However, some investors have not fully used accounting information in sorting out share purchases. This study examines the relevance of accounting information to share prices in companies listed on the Jakarta Islamic Index (JII) for the period 2015 to 2020. The accounting information used is Earnings per Share (EPS), Book Value (BV), Return On Equity (ROE), Net Profit Margin (NPM), and Current Ratio (CR). With the panel data regression analysis method, the researcher found that collectively all accounting information (EPS, BV, ROE, NPM and CR) were stated to have relevance value in explaining their effect on stock prices. Individually, only BV and ROE have relevance value in influencing stock prices. As for EPS, NPM and CR have no value relevance to the share price of companies listed on the Jakarta Islamic Index (JII) for the period 2015 to 2019

scholarly journals Motives of Stock Option Incentive Design, Ownership, and Inefficient Investment

2018 ◽  
Vol 10 (10) ◽  
pp. 3484 ◽  
Author(s):  
Wei Shan ◽  
Ran An
Keyword(s):  
Panel Data ◽  
Stock Options ◽  
Stock Option ◽  
Share Price ◽  
Incentive Design ◽  
Price Movement ◽  
Chinese Listed Companies ◽  
Different Types ◽  
And Performance ◽  
Stock Option Incentive

This paper analyzes the effects of stock option incentives on inefficient investment. Specifically, based on the motive of design, we divide stock option incentives into incentive-driven and welfare-driven incentives. Our research is based on the panel data of 511 Chinese listed companies that declared stock option incentives from 2010 to 2014, including both incentive-driven and welfare-driven incentives. Our research shows that different types of stock option incentives have different effects on inefficient investment. Generally, incentive-driven stock option incentives reduce inefficient investment, whereas welfare-driven stock option incentives do not reduce inefficient investment, but increase it. However, there is a weakening effect in state-owned enterprises due to two opposite factors, numerous restrictions and more self-interested managers. Additionally, the paper provides implications that some stock options are manipulated by managers in the designing stage in order to pursue self-interests, and therefore monitoring abnormal share price movement and performance hurdles is important to safeguard the wealth of shareholders and promote effective motivation for managers.

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