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Author: Ye Di
Publisher:
ISBN:
Category :
Languages : en
Pages : 42
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Book Description
The purpose of this thesis is to examine the effect of staggered boards on firm value for real estate investment trusts (REITs). We argue that REITs are highly regulated firms in an environment where the takeover market is inactive. We investigate whether takeover devices function well and whether corporate governance hypotheses hold for REITs. We hypothesize that the inefficient management hypothesis does not hold for REITs and that staggered boards have no negative impact on firm value. We collect data for all REITs listed on Compustat and merge them with information from CRSP, BoardEx and company fillings from the SEC's EDGAR database over the period 1990 to 2016. We conduct an event study to test whether takeovers discipline inefficient managers in the real estate sector and estimate a logistic regression to examine whether staggered boards resist takeovers after controlling for prior firm performance, firm financials and board related variables. In addition, we estimate an ordinary least squares (OLS) regression to explore whether staggered boards enhance internal monitoring effectiveness and positively affect firm value. The results indicate that the market for corporate control in the real estate sector fails to discipline inefficient managers, however lower prior firm performance increases a firm's probability of becoming a takeover target. The results also reveal that staggered boards have a negative effect on shareholders' wealth regardless of takeover probability.
Author: Ye Di
Publisher:
ISBN:
Category :
Languages : en
Pages : 42
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Book Description
The purpose of this thesis is to examine the effect of staggered boards on firm value for real estate investment trusts (REITs). We argue that REITs are highly regulated firms in an environment where the takeover market is inactive. We investigate whether takeover devices function well and whether corporate governance hypotheses hold for REITs. We hypothesize that the inefficient management hypothesis does not hold for REITs and that staggered boards have no negative impact on firm value. We collect data for all REITs listed on Compustat and merge them with information from CRSP, BoardEx and company fillings from the SEC's EDGAR database over the period 1990 to 2016. We conduct an event study to test whether takeovers discipline inefficient managers in the real estate sector and estimate a logistic regression to examine whether staggered boards resist takeovers after controlling for prior firm performance, firm financials and board related variables. In addition, we estimate an ordinary least squares (OLS) regression to explore whether staggered boards enhance internal monitoring effectiveness and positively affect firm value. The results indicate that the market for corporate control in the real estate sector fails to discipline inefficient managers, however lower prior firm performance increases a firm's probability of becoming a takeover target. The results also reveal that staggered boards have a negative effect on shareholders' wealth regardless of takeover probability.
Author: Mark J. Roe
Publisher: Oxford University Press, USA
ISBN: 9780199205301
Category : Business & Economics
Languages : en
Pages : 260
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Book Description
In a painstaking analysis, Roe (law, Harvard Law School) examines the impact of a nation's strong social policies on the corporate governance, suggesting that stronger social policies can cause an American style of diffuse ownership among shareholders to fail. The link between social policies and corporate governance is examined statistically for a large number of countries, and in case studies for seven: Italy, Germany, Sweden, the UK, France, Japan, and the US. Product markets, securities markets, and the ability of corporate and economic structures to induce a political backlash are discussed. Annotation (c)2003 Book News, Inc., Portland, OR (booknews.com).
Author: Bing Han
Publisher:
ISBN:
Category : Arbitrage
Languages : en
Pages : 260
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Book Description
Author: Alon Brav
Publisher: Now Publishers Inc
ISBN: 1601983387
Category : Business & Economics
Languages : en
Pages : 76
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Book Description
Hedge Fund Activism begins with a brief outline of the research literature and describes datasets on hedge fund activism.
Author: John C. Coffee
Publisher:
ISBN: 9781680830767
Category : Corporate governance
Languages : en
Pages : 108
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Book Description
The Wolf at the Door: The Impact of Hedge Fund Activism on Corporate Governance has three basic aims: to understand and explain the factors that have caused an explosion in hedge fund activism; to examine the impact of this activism; and to survey and evaluate possible legal interventions with an emphasis on the least restrictive alternative.
Author: Pedro Matos
Publisher: CFA Institute Research Foundation
ISBN: 1944960988
Category : Business & Economics
Languages : en
Pages : 80
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Book Description
This survey examines the vibrant academic literature on environmental, social, and governance (ESG) investing. While there is no consensus on the exact list of ESG issues, responsible investors increasingly assess stocks in their portfolios based on nonfinancial data on environmental impact (e.g., carbon emissions), social impact (e.g., employee satisfaction), and governance attributes (e.g., board structure). The objective is to reduce exposure to investments that pose greater ESG risks or to influence companies to become more sustainable. One active area of research at present involves assessing portfolio risk exposure to climate change. This literature review focuses on institutional investors, which have grown in importance such that they have now become the largest holders of shares in public companies globally. Historically, institutional investors tended to concentrate their ESG efforts mostly on corporate governance (the “G” in ESG). These efforts included seeking to eliminate provisions that restrict shareholder rights and enhance managerial power, such as staggered boards, supermajority rules, golden parachutes, and poison pills. Highlights from this section: · There is no consensus on the exact list of ESG issues and their materiality. · The ESG issue that gets the most attention from institutional investors is climate change, in particular their portfolio companies’ exposure to carbon risk and “stranded assets.” · Investors should be positioning themselves for increased regulation, with the regulatory agenda being more ambitious in the European Union than in the United States. Readers might come away from this survey skeptical about the potential for ESG investing to affect positive change. I prefer to characterize the current state of the literature as having a “healthy dose of skepticism,” with much more remaining to be explored. Here, I hope the reader comes away with a call to action. For the industry practitioner, I believe that the investment industry should strive to achieve positive societal goals. CFA Institute provides an exemplary case in its Future of Finance series (www.cfainstitute.org/research/future-finance). For the academic community, I suggest we ramp up research aimed at tackling some of the open questions around the pressing societal goals of ESG investing. I am optimistic that practitioners and academics will identify meaningful ways to better harness the power of global financial markets for addressing the pressing ESG issues facing our society.
Author: David H. Downs
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
This paper offers new evidence as to how RPTs can be value enhancing for minority shareholders. In doing so, we address an ongoing theoretical tension in the related party transaction (RPT) literature by focusing on real estate investment trusts (REITs) in Asia. The empirical evidence is mixed in the corporate finance literature on whether RPTs create or destroy firm value. On average, REITs in our sample engaged in RPT's amounting to 5.4% of total assets, annually, between 2003 and 2010. This is not a trivial amount and is nearly double the 2.8% RPT rate for U.S. industrial firms. We identify tree main channels for REIT RPTs: real estate asset acquisitions from related parties (57.4%), income earned from related parties (22.2%) and management fees paid to related parties (14.8%). The identification strategy we employ relises on two distinct methodologies when examining RPTs and firm value: a multivariate regression approach and, secondly an exogenous wealth effects test for RPT announcements. Overall, the results suggest that REIT managers and sponsors do not expropriate wealth from their minority shareholders through RPTs. We find evidence that an ad hoc acquisitions pipeline from sponsor to REIT generally drives the value and wealth proposition, although the impact could be reversed in a credit crisis.
Author: David M. Einhorn
Publisher: Law Journal Seminars Press
ISBN: 9781588521408
Category : Law
Languages : en
Pages :
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Book Description
This book provides essential discussion of how the customs of corporate and real estate transactions differ and how conflicts involving letters of intent and contingencies to the deal can be resolved.
Author: William A. Kelley
Publisher: ALI-ABA
ISBN: 9780831807894
Category : Business & Economics
Languages : en
Pages : 254
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Book Description
Author:
Publisher:
ISBN:
Category : Real estate investment trusts
Languages : en
Pages : 1126
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Book Description
