The Impact of Announcements of Corporate Illegalities on Shareholder Returns

1988 ◽  
Vol 31 (1) ◽  
pp. 195-200 ◽  
Author(s):  
Wallace N. Davidson ◽  
Dan L. Worrel
Keyword(s):  
Shareholder Returns ◽  
The Impact

The Impact of Illegal Business Practice on Shareholder Returns

1996 ◽  
Vol 31 (1) ◽  
pp. 67-85 ◽  
Author(s):  
Alan K. Reichert ◽  
Michael Lockett ◽  
Ramesh P. Rao
Keyword(s):  
Business Practice ◽  
Shareholder Returns ◽  
The Impact

scholarly journals The impact of regulatory fines on shareholder returns

2015 ◽  
Vol 46 (4) ◽  
pp. 85-96 ◽  
Author(s):  
J. Strydom ◽  
M. Ward ◽  
C. Muller
Keyword(s):  
Public Support ◽  
Shareholder Returns ◽  
Share Prices ◽  
Ex Post ◽  
Competitive Behaviour ◽  
Study Methodology ◽  
The Cost ◽  
The Impact ◽  
Event Study Methodology

Corruption has been shown to undermine the efficiency of market-based economies by allowing participants to profit from illegal rent-seeking activities, which decrease public support for business and increase the cost of capital (Zingales, 2015). Over the past decade, the Competition Commission in South Africa has investigated and issued punitive fines amounting to around R8bn to companies engaged in non-competitive behaviour. Using event study methodology, we examine the impact on the share prices of listed companies upon the announcement of an investigation, a fine, and the payment of thefine. We find that shareholder returns were unaffected at the initiation and payment stages of the process, but that the returns were positively affected at the conviction stage. A buy-and-hold longitudinal study was also undertaken to determine if an ex-post portfolio consisting of stocks of convicted companies out-performed an equal-weighted all share benchmark, as well as a portfolio of matched companies which had not been fined. The results reveal that both the portfolio of fined companies and the matched portfolio of non-fined companies out-performed the market benchmark over a 24-year period. However, the portfolio consisting of convicted companies underperformed the portfolio of companies which had not been fined. We conclude that the market anticipated the fines and that the quantum of fines levied was less than expected. We also find that the non-competitive behaviour of convicted companies did not benefit their shareholders in the long-term.

The LMRDA. Another labor law that benefits firms?

2017 ◽  
Vol 59 (1) ◽  
pp. 2-20
Author(s):  
Steven E. Abraham
Keyword(s):  
Design Methodology ◽  
Labor Law ◽  
Labor Management ◽  
Shareholder Returns ◽  
Content Type ◽  
Study Methodology ◽  
The Law ◽  
The Impact ◽  
Management Reporting ◽  
Event Study Methodology

Purpose This paper aims to examine the impact of the Labor Management Reporting and Disclosure Act (LMRDA). It is expected that returns would have increased in response to the law’s passage, as it imposed a number of restrictions on unions vis-à-vis management and instituted many rules regulating unions’ internal affairs. Design/methodology/approach This paper uses event study methodology, which examines the impact of the law’s passage on the shareholder returns to the firms likely to have been affected by the law. Three different samples are used. Shareholder returns are examined on critical dates associated with the passage of the law to assess whether it benefited the firms in the samples. Findings Shareholder returns to firms expected to have been affected by the LMRDA fell in comparison to their competitors’ returns, indicating that the law was viewed by investors as being beneficial for firms. Presumably, the restrictions the law placed on unions were judged to be more important by investors than the improvement in unions’ image that might have resulted from the law, indicating that the law benefitted firms. Originality/value This is the first paper that has examined the impact of the LMRDA empirically to assess its impact on firms.

scholarly journals Beautifully Broken Benches: A Typology of Strategic Bankruptcies and The Opportunities for Positive Shareholder Returns

1970 ◽  
Vol 12 (2) ◽  
pp. 99-134
Author(s):  
Jerry Sheppard
Keyword(s):  
Shareholder Wealth ◽  
Shareholder Returns ◽  
Detailed Understanding ◽  
Long Run ◽  
The Impact ◽  
Strategic Bankruptcy

Merchants in medieval Venice who failed to pay their debts were closed by banca rotta - the breaking of the bench from which they did their business. In some cases today, bankruptcy is seen as a beautiful strategic maneuver. While there are currently some positive aspects which can be attributed to filing for bankruptcy, there is still debate as to its merits as a strategy. To allow for a more detailed understanding of the strategic bankruptcy concept, the author defines, identifies and categorizes types of bankruptcies. To address the issue of whether bankruptcy is a worthwhile strategy the author also presents a study of the effectiveness of bankruptcy in advancing long-run shareholder wealth. A sample of 155 bankruptcies was employed to study the impact of various strategies on returns to shareholders. Some types of strategies were found to result in significantly greater returns than average.

THE IMPACT OF ANNOUNCEMENTS OF CORPORATE ILLEGALITIES ON SHAREHOLDER RETURNS.

1988 ◽  
Vol 31 (1) ◽  
pp. 195-200 ◽  
Author(s):  
W. N. Davidson ◽  
D. L. Worrell
Keyword(s):  
Shareholder Returns ◽  
The Impact

Formation of Lunar Craters and Bright Rays as a Result of Meteorite Impacts

1962 ◽  
Vol 14 ◽  
pp. 415-418
Author(s):  
K. P. Stanyukovich ◽  
V. A. Bronshten
Keyword(s):  
Explosive Charge ◽  
The Moon ◽  
Meteorite Impacts ◽  
The Earth ◽  
Lunar Craters ◽  
The Impact

The phenomena accompanying the impact of large meteorites on the surface of the Moon or of the Earth can be examined on the basis of the theory of explosive phenomena if we assume that, instead of an exploding meteorite moving inside the rock, we have an explosive charge (equivalent in energy), situated at a certain distance under the surface.

The Geosciences Applied to Lunar Exploration

1962 ◽  
Vol 14 ◽  
pp. 169-257 ◽  
Author(s):  
J. Green
Keyword(s):  
Lunar Surface ◽  
Probable Mechanism ◽  
Point Of View ◽  
Lunar Exploration ◽  
Geological Model ◽  
Apply Geophysics ◽  
Surface Features ◽  
The Impact

The term geo-sciences has been used here to include the disciplines geology, geophysics and geochemistry. However, in order to apply geophysics and geochemistry effectively one must begin with a geological model. Therefore, the science of geology should be used as the basis for lunar exploration. From an astronomical point of view, a lunar terrain heavily impacted with meteors appears the more reasonable; although from a geological standpoint, volcanism seems the more probable mechanism. A surface liberally marked with volcanic features has been advocated by such geologists as Bülow, Dana, Suess, von Wolff, Shaler, Spurr, and Kuno. In this paper, both the impact and volcanic hypotheses are considered in the application of the geo-sciences to manned lunar exploration. However, more emphasis is placed on the volcanic, or more correctly the defluidization, hypothesis to account for lunar surface features.

Asteroid and Comet Impact Speeds upon Mars: Significance for Panspermia and the Supply of Organics

1997 ◽  
Vol 161 ◽  
pp. 197-201 ◽  
Author(s):  
Duncan Steel
Keyword(s):  
Probability Distributions ◽  
Regions Of Interest ◽  
Significant Fraction ◽  
Organic Chemicals ◽  
Impact Speed ◽  
The Mean ◽  
The Impact

AbstractWhilst lithopanspermia depends upon massive impacts occurring at a speed above some limit, the intact delivery of organic chemicals or other volatiles to a planet requires the impact speed to be below some other limit such that a significant fraction of that material escapes destruction. Thus the two opposite ends of the impact speed distributions are the regions of interest in the bioastronomical context, whereas much modelling work on impacts delivers, or makes use of, only the mean speed. Here the probability distributions of impact speeds upon Mars are calculated for (i) the orbital distribution of known asteroids; and (ii) the expected distribution of near-parabolic cometary orbits. It is found that cometary impacts are far more likely to eject rocks from Mars (over 99 percent of the cometary impacts are at speeds above 20 km/sec, but at most 5 percent of the asteroidal impacts); paradoxically, the objects impacting at speeds low enough to make organic/volatile survival possible (the asteroids) are those which are depleted in such species.

Organic Syntheses During the Impact of a Comet with a Gaseous Planet

1997 ◽  
Vol 161 ◽  
pp. 189-195
Author(s):  
Cesare Guaita ◽  
Roberto Crippa ◽  
Federico Manzini
Keyword(s):  
Polymeric Material ◽  
Molecular Form ◽  
Parent Compound ◽  
Blue Filter ◽  
Organic Syntheses ◽  
The Impact

AbstractA large amount of CO has been detected above many SL9/Jupiter impacts. This gas was never detected before the collision. So, in our opinion, CO was released from a parent compound during the collision. We identify this compound as POM (polyoxymethylene), a formaldehyde (HCHO) polymer that, when suddenly heated, reformes monomeric HCHO. At temperatures higher than 1200°K HCHO cannot exist in molecular form and the most probable result of its decomposition is the formation of CO. At lower temperatures, HCHO can react with NH3 and/or HCN to form high UV-absorbing polymeric material. In our opinion, this kind of material has also to be taken in to account to explain the complex evolution of some SL9 impacts that we observed in CCD images taken with a blue filter.

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