Long-term underperformance of public versus rights offering firms

The authors compare the post-issue stock and operating performance of rights issue versus public offer firms using Korean data. The authors find that the stock returns of rights issue firms are less negative than those of public offering firms during the three years subsequent to the seasoned equity offering. The authors further find that the profitability of rights offering firms is superior to those of public offering firms and that the ratio of sales to assets for rights issue firms is much higher over the post-issue period. The results substantiate Heinkel and Schwartz’s (1986) and Eckbo and Masulis’ (1992) theoretical models that posit firms with better quality tend to select the rights issue rather than public offer method when issuing seasoned equity.

Correlation of international and regional (Muslim) concepts in the field of human rights

Introduction. The article is devoted to the problems of correlation of international standards in the field of human rights, based on the liberal values of Western civilization, with regional acts of Muslim countries, correlating with Islam. The study analyzes various points of view of scientists on the issues of universalism of human rights and cultural relativism. The author adheres to the position that the content of human rights and freedoms in each specific community is heterogeneous and depends on its cultural, historical, religious and moral development. Theoretical analysis. The problem of the correlation of concepts in the field of human rights is primarily associated with the different approaches of the existing legal systems to the perception of human rights and freedoms. The theocentric approach, which is shared in the Muslim world, is the opposite of the liberal one, which is based on anthropocentricity. Most of the Muslim countries have signed and ratified international treaties on human rights, but made numerous reservations indicating the possibility of realizing a complex of human rights from the perspective of Islam. Empirical analysis. Despite the difference in views on the scope and content of human rights, Muslim countries strive to implement the international human rights standard. Regional acts of Muslim countries in the field of human rights, developed in the second half of the 20th century, have been severely criticized by human rights organizations on gender and family regulation, religious freedom, self-determination, etc. Currently, the Organization of Islamic Cooperation has developed a Declaration on Human Rights. offering a modern formulation of the position of Muslim countries on human rights. This act is aimed, on the one hand, at convergence of legal positions with the Universal Declaration of Human Rights, on the other hand, it protects basic Islamic values. Results. The study of regional acts of Muslim countries in the field of human rights regulation, modern Muslim concepts of human rights allowed the author to conclude that Muslim countries strive not only to participate in the discussion on human rights, defending their civilizational identity, but also to find points of convergence of Islamic views on human rights with international standards.

Discount, transparency and announcements effects of equity rights offerings: international evidence

Equity rights offerings and their respective announcement effects have been studied extensively in the literature. Our study expands upon these studies and focuses on those announcement effects and the relation between the discount of an equity rights offering and the announcement effect. Previous theoretical and empirical analyses show that firms can signal their quality via the discount in an equity rights offering and demonstrate a negative relation between the discount and the announcement effect. We argue that this link is only relevant in environments where signalling is possible and necessary. These are financial markets with a particularly low level of capital market transparency, i.e. high information asymmetry. We calculate announcement effects for an international sample of equity rights offerings and show that the negative effect of the discount on announcement effects can only be observed in environments with a low capital market transparency. Hence, our study estimates announcement effects across several different countries and is thus among the first to analyse signalling considerations for equity rights offerings in different transparency environments.

Comparative Perspectives

This chapter develops three comparative perspectives. Beginning with direct democracy, enhancing the direct participation of people as in Switzerland—considered revolutionary in the nineteenth century—may still be regarded a progressive form of democracy. But are increased political rights, offering the people not only a voice in electing their representatives but also a chance to decide major decisions directly, really an efficient way to improve democracy? The second perspective deals with federalism. Traditionally understood as a means for the vertical division of power within states, can it also play a role for the supranational division of power and the participation of minorities? The last section places political power-sharing in a context of conflict resolution, especially in multicultural societies. The chapter ends by stressing that power-sharing is not just an institutional arrangement, but that it also has to be based on the specific culture of a society that intends to practice it.

The EU Treaties and the Charter of Fundamental Rights

This Commentary provides an article-by-article summary of the TEU, the TFEU, and the Charter of Fundamental Rights, offering a quick reference to the provisions of the Treaties and how they are interpreted and applied in practice. Written by a team of contributors drawn from the Legal Service of the European Commission and academia, the Commentary offers expert guidance to practitioners and academics seeking fast access to the Treaties and current practice. The Commentary follows a set structure, offering a short overview of the Article, the Article text itself, a key references list including essential case law and legislation, and a structured commentary on the Article itself. The editors and contributors combine experience in practice with a strong academic background and have published widely on a variety of EU law subjects.

Natural Resources and Human Rights

The management of natural resources is linked to broad issues of economic development, as well as to political stability, peace, and security, but it is also intimately connected to the political, economic, social, and cultural rights of individuals and communities relying on these resources. Bad management of natural resources often leads to ill-planned development, misappropriation of land, corruption, bad governance, misaligned budget priorities, lack of strong institutional reforms, and weak policies coupled with a continued denial of human rights of local communities. This book analyses in details the connections that exist between the management of natural resources and human rights, offering a new innovative human rights-based approach to natural resources management. To do it offers a comprehensive analysis of the different norms, procedures, and approaches developed under human rights law that are relevant to the management of natural resources. Advocating for a less market and corporate approach to the control, ownership, and management of natural resources, this book supports the development of holistic and coherent integration of human rights law in the overall international legal framework governing the management of natural resources.

Archival research considerations for CRSP data

Purpose This study aims to remind researchers that measurement errors and inappropriate inferences may result from improperly combining and adjusting certain Center for Research in Security Prices (CRSP) measures. Design/methodology/approach In addition to real-world working examples, the study uses earnings announcements data to examine the effects of improperly combining and adjusting CRSP measures. Findings This study assists researchers with the following two considerations when using CRSP data: stand-alone share prices adjusted with CRSP adjustment factors are inaccurate in the presence of property dividend, spin-off and rights offering events; and ignoring covertly missing stock returns may create misleading test results. The primary objectives of the study are to help researchers increase the integrity of their studies and the probability of publication. Research limitations/implications Inadequate consideration for the two issues discussed in the paper may change the researcher’s statistical inferences. Originality/value Archival researchers who overtly address and discuss the existence of these issues achieve two important and related benefits. First, the researcher increases his or her credibility with editors and reviewers, which enhances the probability of a published study. Second, the researcher increases his or her perceived technical competency, which potentially affects promotion and tenure decisions, editorial membership decisions, co-authorship opportunities and other professional effects. Doctoral students will find this study to be particularly useful.

The issuance of warrants in rights offerings: Agency costs and signaling effects

We examine the issuance choice across rights issues of equity, unit offerings, and standalone warrants and investigate the market reactions to these issue types. We find that agency costs, growth opportunities, and current funding needs relative to assets in place are prime drivers of the type of equity issuance choice. Managers use quality signals such as underpricing, underwriting status, and the proportion of funds raised by exercising warrants in determining the features of the warrant issue. Furthermore, we document that the market reacts more favorably to standalone warrants issues than units and equity during the rights offering period.