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Author: Ivana Raonic
Publisher:
ISBN:
Category :
Languages : en
Pages : 33
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Book Description
This study examines the interactive influence of corporate ownership, corporate governance and investor protection on the incorporation of current value shocks in the accounting earnings of European companies. This influence is investigated not only by means of the association between current news and current earnings but also with respect to the association of the same news with expected future earnings, and its persistence. Consistent with the contractual explanation of accounting conservatism, it is shown that the accounting behaviour examined is a function of the demand created by shareholders, and that the institutional arrangements in force are of lesser significance in the presence of widely held ownership. On the other hand, greater separation between supervision and management and stronger investor protection are seen to be influential under close ownership, as these are shown to curb aggressive accounting in the form of a persistently lower recognition of bad news in earnings. Evidence is also provided that stricter corporate governance practices in Europe can substitute for weaknesses in investor protection provisions in law.
Author: Ivana Raonic
Publisher:
ISBN:
Category :
Languages : en
Pages : 33
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Book Description
This study examines the interactive influence of corporate ownership, corporate governance and investor protection on the incorporation of current value shocks in the accounting earnings of European companies. This influence is investigated not only by means of the association between current news and current earnings but also with respect to the association of the same news with expected future earnings, and its persistence. Consistent with the contractual explanation of accounting conservatism, it is shown that the accounting behaviour examined is a function of the demand created by shareholders, and that the institutional arrangements in force are of lesser significance in the presence of widely held ownership. On the other hand, greater separation between supervision and management and stronger investor protection are seen to be influential under close ownership, as these are shown to curb aggressive accounting in the form of a persistently lower recognition of bad news in earnings. Evidence is also provided that stricter corporate governance practices in Europe can substitute for weaknesses in investor protection provisions in law.
Author: Morten Bennedsen
Publisher:
ISBN:
Category :
Languages : da
Pages : 26
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Author: Inessa Love
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Author: Marco Klapper
Publisher:
ISBN: 9783656224129
Category :
Languages : en
Pages : 30
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Book Description
Bachelor Thesis from the year 2012 in the subject Business economics - Business Management, Corporate Governance, grade: 1,3, University of Tubingen, language: English, abstract: It is the purpose of this paper to examine to what extent ownership structure can alleviate the agency problem and limit managerial expropriation of small shareholders. Since stock options and other forms of equity are frequently used as compensation for managers, special emphasis is placed on the question of how managerial ownership can affect agency costs and firm value. To evaluate the impact of ownership patterns on shareholder value, this paper surveys and reinterprets scientific advances in the corporate governance literature. A significant part of the analysis covers the interrelation of inside ownership, corporate policies, and shareholder value; as well as the role of endogeneity.
Author: Beni Lauterbach
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 58
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Author: Ning Yaqi Shi
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
This dissertation investigates the incentives for and consequences of management earnings forecasts released by foreign firms opting into the U.S. markets. It also attempts to measure how country-level governance mechanisms (e.g., legal institutions and the SEC enforcement) and firm-level governance mechanisms (e.g., ownership and auditor) interact to influence the answers. It is the earliest study to link management earnings forecasts, corporate governance and firm valuation in an international setting. Additionally, by investigating issues on voluntary information that cross-listed firms sequentially provide, this dissertation extends the Investor Recognition Hypothesis by Merton (1987), and adds to our understanding about reputational bonding mechanisms (Coffee, 1999; Siegel, 2005). Essay I provides a primer on the institutional background of cross-listed firms, and demonstrates that these firms are unique in regulatory, economic and legal schemes. Specifically, foreign firms listing in the U.S. are characterized by various home-country legal institutional environments, different listing statuses (ADR Level I, II, III, and direct listing), active global product market interactions and different firm-level concentrated ownerships. These distinctive aspects of cross-listed firms make my study relevant to the literature on management earnings forecasts as well as firm valuation. Essay 2 focuses on the incentives to provide management earnings forecasts released by foreign firms listing in the U.S.I document that legal institutions, as measured by legal origin, investor protection and judicial efficiency, are positively associated with the likelihood of forecast occurrence. In addition, cross-listed firms are more apt to release forecast disclosures when they list on major U.S. stock exchanges, and have a higher proportion of foreign sales. Further, I indicate that the likelihood of forecasts is positively associated with institutional ownership, but negatively associated with the proportion of cash flow rights controlled by the largest shareholders. Essay 3 explores how management earnings forecasts, other firm attributes, and country institutional factors interact with each other to affect firm values. I find that forecasting cross-listed firms enjoy higher valuation premiums relative to non-forecasting firms. I also provide evidence that cross-listed firms from weaker legal institutions benefit more from disclosing management earnings forecasts. Moreover, I demonstrate that forecast precision and forecast frequency are favorably associated with firm valuation. Overall, this essay suggests that cross-listed firms are rewarded for their voluntary bonding to transparent financial reporting practices. Key words. Crass Listing, Firm Values, International Governance Convergence, Legal Regimes, Management Earnings Forecasts, Reputational Bonding.
Author: United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs
Publisher:
ISBN:
Category : Corporation law
Languages : en
Pages : 520
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Author: Emmanuel O. Kumah
Publisher: International Monetary Fund
ISBN: 1451873891
Category : Business & Economics
Languages : en
Pages : 75
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Book Description
This paper analyzes the seven valuation methods for unlisted direct investment equity included in the recently adopted IMF Balance of Payments and International Investment Position Manual, Sixth Edition (BPM6). Based on publicly available Danish data, we test the three methods that are generally applicable and find that the choice of valuation method and estimation technique can have a highly significant impact on the international investment position, pointing to the need for further harmonization. The results show that the price-to-book value method generates more robust market value estimates than the price-to-earnings method. This finding suggests that the valuation basis for the forthcoming Coordinated Direct Investment Survey - own funds at book value -will provide useful information for compiling the international investment position.
Author: Alberto Chong
Publisher: World Bank Publications
ISBN: 0821369148
Category : Business & Economics
Languages : en
Pages : 584
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Book Description
'Investor Protection and Corporate Governance' analyzes the impact of corporate governance on firm performance and valuation. Using unique datasets gathered at the firm-level the first such data in the region and results from a homogeneous corporate governance questionnaire, the book examines corporate governance characteristics, ownership structures, dividend policies, and performance measures. The book's analysis reveals the very high levels of ownership and voting rights concentrations and monolithic governance structures in the largest samples of Latin American companies up to now, and new data emphasize the importance of specific characteristics of the investor protection regimes in several Latin American countries. By and large, those firms with better governance measures across several dimensions are granted higher valuations and thus lower cost of capital. This title will be useful to researchers, policy makers, government officials, and other professionals involved in corporate governance, economic policy, and business finance, law, and management.
Author: Lars Oxelheim
Publisher: Emerald Group Publishing
ISBN: 0080446655
Category : Business & Economics
Languages : en
Pages : 468
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Book Description
What is transparency? What does it do? How much of it do we need, and for what purpose? This book includes chapters that address transparency in different markets and at different levels: from corporate financial disclosure to lobbying; from the risk incentives facing banks to competition and environmental policies.
