scholarly journals On the estimation of the value of voting rights: Evidence from Taiwan

2006 ◽  
Vol 3 (2) ◽  
pp. 15-22 ◽  
Author(s):  
I-Hsiang Huang
Keyword(s):  
Stock Market ◽  
Abnormal Return ◽  
Market Value ◽  
Voting Rights ◽  
Publicly Traded ◽  
Private Benefit ◽  
Expected Return ◽  
Equity Ownership ◽  
Publicly Traded Firms

This paper proposes that the value of voting rights can be measured as the abnormal return of the date after the ex-voting rights date. The merit of this method is that it is applicable to all publicly traded firms. Whatever the expected return model is adopted, the vote value hypothesis of Manne (1962) is hold by using a sample of firms listed on Taiwan Stock Market whose annual shareholder meetings have a board election. Moreover, the result shows that the value of voting rights is negatively related to prior year’s market value of equity, managerial equity ownership, and return on asset. It is consistent with the hypothesis that the source of vote value comes from private benefit of control and improved management

scholarly journals The Curse of Extremes: Generalist Career Experience and CEO Initial Compensation

2020 ◽  
pp. 014920632092230
Author(s):  
Philipp E.M. Mueller ◽  
Dimitrios Georgakakis ◽  
Peder Greve ◽  
Simon Peck ◽  
Winfried Ruigrok
Keyword(s):  
Human Capital ◽  
Labor Market ◽  
Knowledge Base ◽  
Initial Level ◽  
Market Value ◽  
Career Mobility ◽  
Publicly Traded ◽  
Career Experience ◽  
Publicly Traded Firms

Studies argue that generalist CEOs are more valued by the market for executive labor and receive higher initial compensation. Challenging this prevailing assumption, we acknowledge the drawbacks of extensive career mobility and predict an inverted U-shape relationship between CEO generalist career experience and CEO initial compensation. Integrating the generalism and specialization views of human capital, we postulate that at an initial level, the acquisition of experience breadth from different firms and industries enables CEOs to broaden their knowledge base, obtain a variety of skills, and thus increase their labor market value and initial compensation. After a threshold, however, the accumulation of extensive levels of career generalism through frequent job hopping across firm and industry contexts gradually causes a lack of experience depth and insufficient career specialization, thereby triggering lower CEO market value and initial pay. Data from 197 CEO appointments in large, publicly traded firms support our predictions. Our results also show that the observed inverted U-shape relationship varies with factors nested at different layers of context, highlighting the contingent nature of this area of research.

Assessing the impact of investors' expectations on the capitalization of publicly-traded corporations on the Russia stock market

2021 ◽  
Vol 27 (10) ◽  
pp. 2328-2348
Author(s):  
Anastasiya O. VOLODINA
Keyword(s):  
Stock Market ◽  
Stock Prices ◽  
Classical Model ◽  
Electric Energy ◽  
Equity Capital ◽  
Corporate Management ◽  
Publicly Traded ◽  
Expected Return ◽  
Modified Model ◽  
The Impact

Subject. This article investigates the impact of investors' expectations on the capitalization of publicly-traded corporations of Russia stock market. Objectives. The purpose is to assess the impact of investors' expectations on the capitalization of corporations that are publicly traded on the Russian stock market, to expand tools for assessing the expected return of investors. Methods. The study employs models for assessing the profitability of financial assets, namely, Capital Asset Pricing Model (CAPM) and modified CAPM, as well as general scientific and statistical methods for analyzing economic processes. Results. Using the CAPM, I determined expected profitability of twenty Russian publicly-traded companies, operating in the electric energy, oil and gas, and metallurgical sectors of the economy, and assessed the model’s effectiveness. Based on the tools of correlation and regression analysis, I estimated the impact of expected return of investors on changes in company capitalization. The paper reveals the relationship between investors' expectations and changes in the capitalization of Russian corporations. Conclusions. The modified model showed higher forecast efficiency compared to the classical model. There is a strong correlation between expectations of investors, determined under the modified model, and changes in Russian corporations’ capitalization. This enables the company management to influence the market value of the enterprise. The findings may be useful for investors, to enhance the forecast accuracy and make appropriate investment decisions, and for corporate management, to assess the value of company's equity capital, forecast the movement of stock prices, and influence the company's capitalization through the proposed model.

scholarly journals The CEO Horizon Problem and Managerial Slack in China

2018 ◽  
Vol 14 (2) ◽  
pp. 343-376 ◽  
Author(s):  
Junxiong Fang ◽  
Lerong He ◽  
Martin J. Conyon
Keyword(s):  
Corporate Governance ◽  
Governance Mechanisms ◽  
Publicly Traded ◽  
Horizon Problem ◽  
Ceo Tenure ◽  
Corporate Governance Mechanisms ◽  
Perverse Incentives ◽  
Equity Ownership ◽  
Publicly Traded Firms ◽  
Using Data

ABSTRACTThis study investigates how CEO behavior and incentives change during the CEO's final years in office, known as the horizon problem. We examine how the horizon problem alters managerial slack, a measure of operational inefficiency and managerial value diversion. Using data on Chinese publicly traded firms between 2003 and 2011, we find that managerial slack increases in the last two years of CEO tenure compared to earlier years. We also show that the increase in managerial slack in CEO final years in office is smaller in privately controlled firms than in state-owned enterprises, smaller in firms with CEO equity ownership and more independent boards compared to those without. We conclude that higher quality corporate governance mechanisms ameliorate the perverse incentives associated with the CEO horizon problem, and reduce CEOs’ tendency to increase managerial slack during their final years in office.

Discussion: “Earnings and Risk Changes around Private Placements of Equity”

1998 ◽  
Vol 13 (3) ◽  
pp. 375-376
Author(s):  
Prem C. Jain
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Market Reaction ◽  
Publicly Traded ◽  
Future Earnings ◽  
Stock Market Reaction ◽  
Rational Explanation ◽  
Private Placements ◽  
Publicly Traded Firms

Hertzel and Rees provide a rational explanation for a positive stock market reaction to the announcements of private sales of common equity by publicly traded firms. While previous research by Wruck (1989) and Hertzel and Smith (1993) focused on studying returns to equity holders, Hertzel and Rees focus on examining why the stock returns around the announcements are significantly positive. The authors examine two potential explanations: a change in risk and a change in future earnings. Their empirical findings are consistent with a change in earnings explanation but not with a change in risk explanation.

Pension funds and corporate governance in developing countries: what do we know and what do we need to know?

2004 ◽  
Vol 3 (2) ◽  
pp. 197-232 ◽  
Author(s):  
MARIO CATALÁN
Keyword(s):  
Developing Countries ◽  
Corporate Governance ◽  
Stock Market ◽  
Pension Fund ◽  
Pension Funds ◽  
Market Development ◽  
Publicly Traded ◽  
Stock Market Development ◽  
Pension Reforms ◽  
Publicly Traded Firms

Conventional wisdom holds that pension reforms from pay-as-you-go to fully funded systems spur the development of stock markets through a corporate governance channel, i.e. pension funds become large shareholders of publicly traded firms and therefore have the incentives to monitor managers and improve investor protections. This paper reviews the literature on the corporate governance channel associated with pension reforms in developing countries, and asks what we know and need to know about it. We know that pension funds are not yet large shareholders of publicly traded firms in developing countries. However, econometric results suggest that pension reforms lead to stock market development, but do not allow us to identify and separate the corporate governance channel. We know that pension reforms are followed by pro-investor legislation, but there is no convincing evidence that the pro-investor laws are enforced. We need to know more about the effects of pension reform on stock prices and performance of publicly traded firms, and whether pension fund management companies act in the best interest of pensioners. The paper also reviews the political economy explanations of the links between pension fund specific capital controls and the corporate governance channel, and suggests that there is a trade-off between the objectives of pensioners' welfare maximization, and corporate governance reform and stock market development.

The Effects of Share Repurchase Announcements on Returns in the Malaysia Stock Market

2018 ◽  
Vol 1 (1) ◽  
pp. 1 ◽  
Author(s):  
Tze San Ong ◽  
Pei San Ng
Keyword(s):  
Stock Market ◽  
Abnormal Return ◽  
Small Firms ◽  
Abnormal Returns ◽  
Share Repurchase ◽  
Before And After ◽  
Positive Abnormal Return ◽  
Repurchase Announcements ◽  
Signaling Hypothesis ◽  
Firm Characteristic

This paper examines the market response surrounding the share repurchase announcements of Malaysia Listed Companies from years 2012 to 2016. One sample T-test was carried out to identify the abnormal return in the range before and after 20 days from share repurchase announcements. The result shows a significant positive abnormal return in the day of repurchase announcements and continuously until day 1 after the announcements. Multiple regression analysis was performed in order to identify the firm characteristic of share repurchase. The finding is supported with information asymmetric, which shows that stock market reacts more favorably through the repurchase announcements by small firms than large firms. This study is consistent with the signaling hypothesis that shows share repurchase announcement can be an effective tool in stabilizing the stock market in Malaysia. The finding of this study acts as a useful tool for managers and investors to improve their decisions on share repurchase announcements in Malaysia. Company’s managers can conduct share repurchase announcements that are able to make the stock market react positively in order to generate positive abnormal returns.

Sign in / Sign up

Export Citation Format

Share Document