Stock Exchange Monitoring and Firm Performance PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Stock Exchange Monitoring and Firm Performance PDF full book. Access full book title Stock Exchange Monitoring and Firm Performance by Enas Abdullah Hassn. Download full books in PDF and EPUB format.
Author: Enas Abdullah Hassn
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
This paper examines the corporate governance role of stock exchanges by investigating the effect of stock exchange monitoring on the firm performance. The main analysis suggests that a firm's performance improves as the strength of stock exchange monitoring increases. The strength of stock exchange monitoring is measured as the average score of quartile rankings of seven variables for stock exchange monitoring, turnover velocity, exchange age, concentration of domestic shares, demutualization, hybrid exchange, insider trading rules index, rank of exchange. These results imply that stock exchange monitoring plays an important role in the corporate governance of U.S. listed firms. Additional analyses show that U.S. firms' performances are more likely to be influenced by U.S. stock exchange monitoring than non-U.S. stock exchanges. Further, the results indicate that cross-listed firms are less likely to be influenced by U.S. stock exchange monitoring than matched U.S. firms Additionally, SOX crowds out the impact of stock exchange as a monitor on firm performance. The results of this study are robust to potential endogeneity concerns relating to correlated omitted variable bias, and reverse causality. The study contributes to the extant literature on the significant role of stock exchange monitoring, by adding another dimension to stock exchange efficiency.
Author: Enas Abdullah Hassn
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
This paper examines the corporate governance role of stock exchanges by investigating the effect of stock exchange monitoring on the firm performance. The main analysis suggests that a firm's performance improves as the strength of stock exchange monitoring increases. The strength of stock exchange monitoring is measured as the average score of quartile rankings of seven variables for stock exchange monitoring, turnover velocity, exchange age, concentration of domestic shares, demutualization, hybrid exchange, insider trading rules index, rank of exchange. These results imply that stock exchange monitoring plays an important role in the corporate governance of U.S. listed firms. Additional analyses show that U.S. firms' performances are more likely to be influenced by U.S. stock exchange monitoring than non-U.S. stock exchanges. Further, the results indicate that cross-listed firms are less likely to be influenced by U.S. stock exchange monitoring than matched U.S. firms Additionally, SOX crowds out the impact of stock exchange as a monitor on firm performance. The results of this study are robust to potential endogeneity concerns relating to correlated omitted variable bias, and reverse causality. The study contributes to the extant literature on the significant role of stock exchange monitoring, by adding another dimension to stock exchange efficiency.
Author: Enas Abdullah Hassan
Publisher:
ISBN:
Category :
Languages : en
Pages : 362
Get Book Here
Book Description
This thesis examines the association between stock exchange monitoring and both firm performance and the quality of reported earnings for publicly listed firms from 16 economies across the Middle East and North Africa region (MENA). Agency theory suggests that efficient monitoring mechanisms have an important role to play in enhancing operating performance and the quality of reported earnings. Like other external mechanisms (i.e. takeovers, analysts following, banks, and institutional ownership), stock exchanges, as external monitors, perform monitoring activities that increase shareholders' ability to evaluate managerial performance, and put in place effective managerial incentive schemes that are designed to motivate managers to act in the best interests of the shareholders, improve firm performance and enhance the quality of reported earnings. This suggests that the significant monitoring role of stock exchanges enhances market efficiency. Thus, it builds upon the association between stock exchanges monitoring and efficiency; as stock exchange monitoring improves, stock exchange efficiency increases. Using 15,295 (firm performance model) and 8,383 (earnings quality model) firm-year observations between 2001 and 2010 indicate that stock exchange efficiency is positively associated with firm performance, and negatively associated with the absolute value of abnormal accruals (a proxy of earnings quality). Additional tests comparing the results of more efficient exchanges with less efficient exchanges suggests that firms listed on more efficient stock exchanges have better performance and higher earnings quality (lower accruals) than their counterparts listed on less efficient stock exchanges. Additional analyses is performed to examine whether the association suggested by the main results continue to be evident in the presence of other factors shown in prior research to impact on firm performance or earnings quality (i.e. investor protection, legal origin, internal mechanisms, regional attributes, and the instability of economic and political events). Overall, empirical evidence supports the expectations, implying that the association between stock exchange efficiency and firm performance becomes stronger in countries with greater investor protection, a common law tradition, and high income levels. In contrast, the association between stock exchange efficiency and performance appears not to be influenced by the strength of internal governance and whether the firm operates in the oil sector. With regard to earnings quality, however, the results indicate that the association between stock exchange efficiency as an external monitoring mechanism and earnings quality is not affected by other factors. Fundamentally, the results of this thesis are consistent with the extant literature that suggests associations between monitoring mechanisms in general, external mechanisms in particular and both firm performance and earnings quality. This indicates that as stock exchange monitoring efficiency increases, firm performance and earnings quality improves. This thesis contributes to the extant literature on the significant role of stock exchange monitoring. Examining stock exchange monitoring adds another dimension to stock exchange efficiency. Further, it expands our understanding of the effectiveness of stock exchange monitoring role as an external mechanism in mitigating agency problems leading to improved firm performance and earnings quality.
Author: Asmaa Aly Hanafy
Publisher:
ISBN:
Category : Performance
Languages : en
Pages : 140
Get Book Here
Book Description
Abstract: There are several research papers regarding the relationship between corporate governance and firm performance. One of the aspects of corporate governance is the board of directors. Board monitoring is a critical aspect which can be measured by number of board meetings and number of board committees. There are several studies on board diversity and composition of board of directors and firm performance, while there are few research studies on the number of board committees and board meetings and their relationship with the firm performance. Accordingly, this thesis focuses on the relationship between board monitoring measured by number of board meetings and number of board committees and firm performance in the UK. The sample is Financial Times and London Stock Exchange (FTSE) 150 which includes the largest 150 listed companies on London Stock Exchange. Firm performance is measured by an accounting measure which is return on assets (ROA) and a market performance measure which is Tobin’s Q. The results of this study show that there is no significant relationship between number of board meetings and firm performance. However, there is a significant negative relationship between number of board committees and firm performance. Keywords: board committees, board meetings, corporate governance, firm performance, FTSE150, UK.
Author: Melsa Ararat
Publisher:
ISBN:
Category :
Languages : en
Pages : 33
Get Book Here
Book Description
The main objective of this paper is to investigate the impact of board diversity on the financial performance of the ISE-100 index firms traded in the Istanbul Stock Exchange (ISE). We use gender and generation differences as observable attributes and directors' educational and nationality backgrounds as proxies of non-observable attributes of values, beliefs, skills and competencies. We combine these different diversity indicators with "independence" through a diversity index, to account for the critical mass of diverse opinions needed for critical inquiry. We use market-to-book ratio and Tobin's Q as our market based and return on equity as our accounting based measures of performance. Second, to understand the process by which board diversity affects firm performance, we focus on the relationship between board diversity and the board's monitoring intensity, on the one hand, and monitoring intensity and firm performance, on the other. We define a board's monitoring intensity as a composite mediating variable consisting of the number of board meetings, the number of board committees, auditing and financial reporting quality of the firm and its disclosure intensity. We find a positive relationship between board diversity and performance and board diversity and board monitoring intensity. Furthermore, not only does monitoring intensity impact performance, but it also decreases the explanatory power of most of our board diversity measures when it enters the model in the diversity-performance estimations. Overall, our results suggest that diverse boards are better monitors, mitigating agency conflict and enhancing firm performance. We expect that the findings would be of interest for researchers, investors, shareholders, boards, and regulators.
Author: Morten Balling
Publisher: Springer Science & Business Media
ISBN: 1475726333
Category : Business & Economics
Languages : en
Pages : 358
Get Book Here
Book Description
for many years been heavily dependent on bank financing, and this situation has not changed fundamentally. In his paper on stock exchange governance in the European Union Guido Ferrarini discusses the relative merits of member and investor ownership and compares stock exchange regulation in a number of EU countries. Faced with increasing competition amongst themselves and against other enterprises that offer transaction services, such as proprietary trading systems, it is essential for European stock exchanges to improve their efficiency and to generate volume. Large investments in new information technology are necessary in order to preserve competitiveness in agIobaI financial market. The implementation of the ISD has accelerated cross-border transaction activity of member firms and investors and strengthened the pressure for convergence of national stock exchange laws in the EU. In their paper, Francesco Giavazzi and Marco Battaglini look at the role played by banks in privatization processes. Banks can be involved in such processes in several ways. They may themselves be the objects of privatization since in many countries a significant fraction of the banking industry is publicly owned. This is the case in France, Spain and Italy. But banks can also be important buyers of the equity of industrial firms sold by the government if they are allowed to do so. The authors characterize privatizations as a very good opportunity to set up the right environment for the development of new financial intermediaries and in general for asound corporate governance system.
Author: John G. Cragg
Publisher: University of Chicago Press
ISBN: 0226116727
Category : Business & Economics
Languages : en
Pages : 185
Get Book Here
Book Description
John G. Cragg and Burton G. Malkiel collected detailed forecasts of professional investors concerning the growth of 175 companies and use this information to examine the impact of such forecasts on the market evaluations of the companies and to test and extend traditional models of how stock market values are determined.
Author: Arshad Khan
Publisher: iUniverse
ISBN: 0595227740
Category : Business & Economics
Languages : en
Pages : 238
Get Book Here
Book Description
This book contains 501 stock market lessons, guidelines and tips, which are grouped by various topics such as buying, selling, planning and research, picking winning characteristics, company analysis, valuation, price/earnings ratio, price performance, market behavior, technical analysis, monitoring the economy, miscellaneous tips and common mistakes to avoid. Novice as well as experienced investors will find this book useful, which is easy to read and follow because each tip is short, to the point, and grouped together with other tips that address the same topic. Therefore, an investor desirous of looking up tips on a specific subject, such as market behavior, will be able to find them in one place-in one chapter. The tips in this book provide a high level, summarized, overview. Therefore, it is ideally suited for refreshing the basic principles and rules of stock market investing. Hence, investors who desire to gain an in-depth knowledge of stock market investing are referred to the author's previously published book, "Stock investing for everyone: Tools for investing like the pros".
Author: Naeem Tabassum
Publisher: Springer Nature
ISBN: 3030485277
Category : Business & Economics
Languages : en
Pages : 335
Get Book Here
Book Description
Establishing a corporate governance strategy that promotes the efficient use of organisational resources is instrumental in the economic growth of a country, as well as the successful management of firms. This book reviews existing literature and identifies board structural features as key variables of an effective corporate governance system, establishing a multi-theoretical model that links Board structural characteristics with firm performance. It then, using a comprehensive empirical study of 265 companies listed on the Karachi Stock exchange, tests this conceptual model. This research serves as a significant milestone, reflecting the socio-economic setting of emerging economies, and highlighting the need for the corporate sector in emerging markets to move away from a 'tick-box' culture. It argues that the sector needs to implement corporate governance as a tool to mitigate business risks; appoint and empower non-executive directors to achieve an effective monitoring of management; and establish their own ethical and governance principles, applicable to the Board of Directors. Based on an extensive data base, collected painstakingly over five years, this book offers new insights and conceptual framework for further research in this area. Given the breadth and width of the research, it is a useful source of future reference for students, researchers and policy makers.
Author: Christian Alexander Wegener
Publisher: GRIN Verlag
ISBN: 3640814479
Category : Business & Economics
Languages : en
Pages : 46
Get Book Here
Book Description
Seminar paper from the year 2006 in the subject Business economics - Investment and Finance, grade: sehr gut, University of Münster (Finance Center Münster), language: English, abstract: Many scholars have analyzed whether and how management share ownership should be used in terms of a corporate governance instrument to enhance corporate performance. The empirical results, however, have been inconclusive till this day. This seminar paper attempts to explain the problems and difficulties that underlie the obscurity and how researches might eventually unravel this challenge.
Author: Kenneth Lehn
Publisher: Irwin Professional Publishing
ISBN:
Category : Business & Economics
Languages : en
Pages : 558
Get Book Here
Book Description
New developments in securities markets, particularly in the areas of technology, financial products, and foreign securities markets, are challenging the Securities and Exchange Commission to reconsider its regulatory policies. This book offers detailed prescriptions for effective regulation from experienced regulators and noted scholars in the field. A definitive collection that illustrates how research and expert opinion can help the SEC frame issues and establish objective criteria for evaluating the effectiveness of its policies.
