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Author: Rajni Kant Rajhans
Publisher:
ISBN: 9781529795387
Category : Equity
Languages : en
Pages :
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Book Description
The case discusses the dilemma faced by retail equity investors who have invested in companies in which promoters had pledged their equity against personal borrowing. Equity pledging by promoters was a global phenomenon with greater numbers and more frequent pledging in developing and underdeveloped financial markets than in developed financial markets. Between 2009 and 2019, equity pledging increased significantly in Indian firms. Many promoters defaulted in margin calls and lenders were forced to sell their shares. Due to this forced sell by lenders, retail and marginal equity investors suffered huge losses. However, fear of a price crash was still prevalent for other firms in which promoters had pledged their equity holdings. Students will be asked to evaluate the risks of retail investors invested in firms with promoter pledged shares and market-wide implications of increased share pledging activity.
Author: Rajni Kant Rajhans
Publisher:
ISBN: 9781529795387
Category : Equity
Languages : en
Pages :
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Book Description
The case discusses the dilemma faced by retail equity investors who have invested in companies in which promoters had pledged their equity against personal borrowing. Equity pledging by promoters was a global phenomenon with greater numbers and more frequent pledging in developing and underdeveloped financial markets than in developed financial markets. Between 2009 and 2019, equity pledging increased significantly in Indian firms. Many promoters defaulted in margin calls and lenders were forced to sell their shares. Due to this forced sell by lenders, retail and marginal equity investors suffered huge losses. However, fear of a price crash was still prevalent for other firms in which promoters had pledged their equity holdings. Students will be asked to evaluate the risks of retail investors invested in firms with promoter pledged shares and market-wide implications of increased share pledging activity.
Author: Michael Puleo
Publisher:
ISBN:
Category :
Languages : en
Pages : 106
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Book Description
Corporate insiders frequently borrow from lending institutions and pledge personal equity shares as collateral for the loan. Using manually collected pledge data for January 2007-December 2011, I examine how this phenomena affects firm investors and analyze agency conflicts between pledging managers and (a) outside shareholders, and (b) bondholders. Pledging potentially influences investor risk through changing managerial incentives and/or contingency risk from ill-timed margin calls. Findings suggest influential insiders extract private benefits of control at the expense of outside shareholders through pledging. Difference-in-differences regressions utilizing an exogenous shock to lending supply indicate pledging corresponds with a 9.9% relative increase in stock volatility - controlling for changes in fundamentals - and support a causal interpretation of the relation between pledging and equity risk. Despite apparently harming equity investors however, further analysis suggests pledging benefits bondholders, and corresponds with an economically and statistically significant reduction in yield spreads on corporate bonds. Robustness tests evidence reductions in risky financing when insiders pledge, corroborating the negative relation between pledging and cost of debt and consistent with mitigated agency conflicts between managers and bondholders.
Author: Albert Sidney Bolles
Publisher:
ISBN:
Category : Law
Languages : en
Pages : 196
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Book Description
Author: Anshuman Khanna
Publisher: Notion Press
ISBN: 1946129925
Category : Business & Economics
Languages : en
Pages : 248
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Book Description
Have you ever been fascinated by the Indian equity markets and wanted to learn more about them? Have you wanted to invest in Indian stocks but didn’t know how to proceed?Have you been investing in the Indian markets but have felt the need for a systematic approach to investing?Have you read works of foreign authors on value investing but could not adapt those to Indian markets?Have you been bombarded with a plethora of tips, ideas and sure-shot investment picks and struggled to find a winning formula?If your answer to any of these questions is a yes, then this book is for you! What makes this book unique? Written in a simple, conversational style Step-by-step simplified approach for picking investment-worthy stocks Adapted to Indian scenario Makes use of case studies of actual Indian companies to illustrate application of the approach Showcases the financials and valuation of Indian companies using the latest financial data Discusses performance of the stock prices with charts and tables Uses examples from actual corporate events in the recent history to elucidate the given points Correlates actual price movement of stocks with corporate and regulatory events Covers aspects regarding portfolio allocation, timing the markets and trading strategies India-centric, thus, an ideal read for not only Indian investors and readers, but also foreign readers looking to participate in the Indian economic growth at this opportune time.
Author: Philip Taylor Van Zile
Publisher:
ISBN:
Category : Bailments
Languages : en
Pages : 952
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Book Description
Author: David F. Larcker
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Companies include equity in a compensation package to align the interests of management with those of shareholders. It is not uncommon for an executive who has been employed at a company for many years to accumulate a substantial dollar ownership position in the company. With a concentration of wealth in a single financial asset, the executive may want to limit his or her exposure by hedging a portion of the position through financial instruments or pledging shares as collateral for a loan. While there are many reasons why a board may want to allow an executive to hedge or pledge an equity ownership position, there are also many reasons why this may be a cause for concern. We examine these issues in detail. Can boards explain why they do or do not allow executive hedging? If an executive has hedged the equity position, why does the board continue to grant new equity and not cash? Topics, Issues and Controversies in Corporate Governance and Leadership: The Closer Look series is a collection of short case studies through which we explore topics, issues, and controversies in corporate governance. In each study, we take a targeted look at a specific issue that is relevant to the current debate on governance and explain why it is so important. Larcker and Tayan are co-authors of the book Corporate Governance Matters, and A Real Look at Real World Corporate Governance.
Author: Ransom Hebbard Tyler
Publisher:
ISBN:
Category : Interest
Languages : en
Pages : 848
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Book Description
Author: J.J. Clark Hare
Publisher: BoD – Books on Demand
ISBN: 3382311585
Category : Fiction
Languages : en
Pages : 718
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Book Description
Reprint of the original, first published in 1859. The publishing house Anatiposi publishes historical books as reprints. Due to their age, these books may have missing pages or inferior quality. Our aim is to preserve these books and make them available to the public so that they do not get lost.
Author: Reena Aggarwal
Publisher: World Bank Publications
ISBN:
Category : Foreign exchange
Languages : en
Pages : 47
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Book Description
Author: Frederick Thomas White
Publisher:
ISBN:
Category : Equity
Languages : en
Pages : 600
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Book Description
