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Author: Jenny Zha
Publisher:
ISBN:
Category :
Languages : en
Pages : 146
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Book Description
This dissertation studies a firm's decision to voluntarily disclose that it is seeking "strategic alternatives," effectively setting out to explore the potential sale or merger of the company. Firms appear to use these voluntary disclosures to maximize shareholder value and credibly convey private information. Voluntary disclosures of strategic alternatives are associated with a three-day return of +5.8 percent on average. Compared to an entropy-balanced control group with similar characteristics in expectation, disclosing firms that are subsequently acquired experience positive abnormal takeover returns (reflecting benefits from a more favorable sale process and improved information), whereas disclosing firms that are not subsequently acquired experience negative abnormal returns (reflecting costs from more dysfunction). The existence of economically significant costs and benefits is consistent with a general voluntary disclosure framework resulting in a threshold equilibrium. The decision to seek strategic alternatives appears to be prompted by poor performance, poor information environment, and the presence of corporate governance catalysts, namely, blockholders, activists, and golden parachutes.
Author: Jenny Zha
Publisher:
ISBN:
Category :
Languages : en
Pages : 146
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Book Description
This dissertation studies a firm's decision to voluntarily disclose that it is seeking "strategic alternatives," effectively setting out to explore the potential sale or merger of the company. Firms appear to use these voluntary disclosures to maximize shareholder value and credibly convey private information. Voluntary disclosures of strategic alternatives are associated with a three-day return of +5.8 percent on average. Compared to an entropy-balanced control group with similar characteristics in expectation, disclosing firms that are subsequently acquired experience positive abnormal takeover returns (reflecting benefits from a more favorable sale process and improved information), whereas disclosing firms that are not subsequently acquired experience negative abnormal returns (reflecting costs from more dysfunction). The existence of economically significant costs and benefits is consistent with a general voluntary disclosure framework resulting in a threshold equilibrium. The decision to seek strategic alternatives appears to be prompted by poor performance, poor information environment, and the presence of corporate governance catalysts, namely, blockholders, activists, and golden parachutes.
Author: Jenny Zha Giedt
Publisher:
ISBN:
Category :
Languages : en
Pages : 58
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Book Description
How does a public announcement about a company exploring its potential sale or merger (“strategic alternatives”) affect the company and its shareholders? This study provides the first look at some of the positive and negative consequences to this unique disclosure of strategic alternatives. The inherent uncertainty in ex-post transactional outcomes--whether the firm is acquired, liquidated, or remains independent--allows me to estimate the disclosure's consequences on shareholder value which accrues differentially to these subsamples. I find that the announcement of strategic alternatives is associated with excess takeover-related gains for firms that are subsequently acquired but abnormal negative returns for firms that are not subsequently sold. Further results suggest a unique trade-off embodied by this disclosure: the announcement can generate greater investor attention and lead to a more informed M&A sale process (the benefit), while also being a costly admission of business problems that alienates stakeholders and wears on operations (the cost). These consequences that ultimately affect firm value underscore the cost-benefit trade-off managers should consider when making this disclosure decision.
Author: Henricus Petrus Theodorus Coebergh
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
Author: Piet Hein Coebergh
Publisher:
ISBN:
Category :
Languages : en
Pages : 214
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Book Description
Business leaders increasingly face pressure from stakeholders to be transparent. There appears however little consensus on the risks and payoffs of disclosing vital information such as corporate strategy. To fill this gap, this study analyzes firm-specific determinants and organisational outcomes of voluntary disclosure of corporate strategy. Stakeholder theory and agency theory help to understand whether companies serve their interest to engage with stakeholders and overcome information asymmetries. I connect these theories and propose a comprehensive approach to measure voluntary disclosure of corporate strategy. Hypotheses from the theoretical framework are empirically tested through panel regression of data on identified determinants and outcomes and of disclosed strategy through annual reports, corporate social responsibility reports, corporate websites and corporate press releases by the 70 largest publicly listed companies in the Netherlands from 2003 through 2008. I found that industry, profitability, dual-listing status, national ranking status and listing age have significant effects on voluntary disclosure of corporate strategy. No significant effects are found for size, leverage and ownership concentration. On outcomes, I found that liquidity of stock and corporate reputation are significantly influenced by voluntary disclosure of corporate strategy. No significant effect is found for volatility of stock. My contributions to theory, methodology and empirics offers a stepping-stone for further research into understanding how companies can use transparency to manage stakeholder relations.
Author: United States. Congress. House. Committee on Commerce. Subcommittee on Oversight and Investigations
Publisher:
ISBN:
Category : Nature
Languages : en
Pages : 80
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Book Description
Author: Satoshi Sugahara
Publisher: John Wiley & Sons
ISBN: 1119467063
Category : Mathematics
Languages : en
Pages : 143
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Book Description
This book explores two combined approaches (strategy and accounting) from a cross-disciplinary perspective in order to improve knowledge of value creation in various contexts. Existing studies on this topic have generally adopted a purely account-based or strategy-oriented approach to address this issue. However, this book draws upon a number of well-defined theoretical and empirical backgrounds and methodologies. Since the 1980s, many changes have occurred and companies have increasingly focused their strategies on value creation. Consequently, new strategic directions have emerged, especially for managerial accounting. Management accounting and alignment with strategy could thus improve performance. This book encourages further thought and reflection on these issues which should be pursued in the future as firms face new challenges associated with the acceleration of digital transformation.
Author: Donald R. Chambers
Publisher: John Wiley & Sons
ISBN: 111960415X
Category : Business & Economics
Languages : en
Pages : 1029
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Book Description
Alternative Investments: CAIA Level I, 4th Edition is the curriculum book for the Chartered Alternative Investment Analyst (CAIA) Level I professional examination. Covering the fundamentals of the alternative investment space, this book helps you build a foundation in alternative investment markets. You'll look closely at the different types of hedge fund strategies and the range of statistics used to define investment performance as you gain a deep familiarity with alternative investment terms and develop the computational ability to solve investment problems. From strategy characteristics to portfolio management strategies, this book contains the core material you will need to succeed on the CAIA Level I exam. This updated fourth edition tracks to the latest version of the exam and is accompanied by the following ancillaries: a workbook, study guide, learning objectives, and an ethics handbook.
Author: Patrick Roy
Publisher: diplom.de
ISBN: 3832448292
Category : Business & Economics
Languages : en
Pages : 141
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Book Description
Abstract: In a first step, this ERP derives the theoretical necessity to provide voluntary strategic and non-financial Information. It is argued that companies are an integral part of a common environment and society, acting in a framework of interdependent relationships. A company is more and more seen as a community of interests of different groups, and it can only act in an optimal way if the demands of all groups are taken into account and its behaviour is adjusted accordingly. In this context, interest groups' demands for company Information depend an the possibilities of improvements in decision making or monitoring that arise with its use, which in turn is mainly determined by the potential of Information to reduce uncertainty in the areas of interest. For external decision-makers, uncertainty often arises from sources about which conservative company statements provide little insight. Due to the traditional, finance-oriented concept of disclosure, this is particularly true for strategic and non-financial aspects. Related additional Information that is voluntarily provided can considerably reduce uncertainty, even more so as part of audited statements. Conventional financial reporting and existing disclosure requirements will generally not nearly satisfy those information needs of user groups. Any economic action, though, should only be taken if related benefits are exceeding related costs. This priority of economicalness also holds for companies' production, processing and disclosure of Information. Therefore, it is necessary to consider as detailed as possible potential opportunities and disadvantages for voluntarily disclosing company Information both an and outside capital markets. This is done in a second major part of the present work. First, voluntary disclosure can potentially affect share prices and thereby the market value of the firm, markets not being strong-form efficient. So, by giving company Information, a higher market value can directly be induced, thereby potentially lowering the cost of capital which, for example, improves the company's competitive position in the battle for cheap additional financing. [...]
Author: Noriswadi Ismail
Publisher: Springer Science & Business Media
ISBN: 3642330819
Category : Law
Languages : en
Pages : 276
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Book Description
The book deals with data protection issues from practical viewpoints. 40% of the content focus on the Malaysian Personal Data Protection Act (PDPA) 2010 progress, whilst 60% of the content focus on leading comparative practical guidance from Europe. Part of the PDPA provisions is mirrored from European approaches and practices. The approach of this book is straightforward, handy and readable and is supplemented by practical applications, illustrations, tables and diagrams. Practical examples highlighted in this book range from cloud computing, radio frequency identification technology, social media networks and information security to basic related aspects of data protection issues covering strategic leadership, management, governance and audit in businesses, organisations and local authorities. Recommended best practices have been outlined for practical guidance accompanied with future challenges and opportunities for Malaysia and ASEAN. The book is equally suitable for academics, practitioners, governmental officials and regulators dealing with data protection within their sector-specific legislation.
Author: H. Kent Baker
Publisher: John Wiley & Sons
ISBN: 1118241126
Category : Business & Economics
Languages : en
Pages : 660
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Book Description
A comprehensive guide to alternative investments that reveals today's latest research and strategies Historically low interest rates and bear markets in world stock markets have generated intense interest in alternative investments. With returns in traditional investment vehicles relatively low, many professional investors view alternative investments as a means of meeting their return objectives. Alternative Investments: Instruments, Performance, Benchmarks, and Strategies, can put you in a better position to achieve this difficult goal. Part of the Robert W. Kolb Series in Finance, Alternative Investments provides an in-depth discussion of the historic performance, benchmarks, and strategies of every major alternative investment market. With contributions from professionals and academics around the world, it offers valuable insights on the latest trends, research, and thinking in each major area. Empirical evidence about each type of alternative investment is featured, with research presented in a straightforward manner. Examines a variety of major alternative asset classes, from real estate, private equity, and commodities to managed futures, hedge funds, and distressed securities Provides detailed insights on the latest research and strategies, and offers a thorough explanation of historical performance, benchmarks, and other critical information Blends knowledge from the conceptual world of scholars with the pragmatic view of practitioners in this field Alternative investments provide a means of diversification, risk control, and return enhancement and, as such, are attractive to many professional investors. If you're looking for an effective way to hone your skills in this dynamic area of finance, look no further than this book.
