Ceo Compensation And Risk-Taking At Financial Firms: Evidence From U.S. Federal Loan Assistance, 2017 Southern Methodist University
Ceo Compensation And Risk-Taking At Financial Firms: Evidence From U.S. Federal Loan Assistance, Amar Gande, Swami Kalpathy
The Modigliani-Miller Theorem At 60: The Long-Overlooked Legal Applications Of Finance’S Foundational Theorem, 2017 University of Pennsylvania Law School
The Modigliani-Miller Theorem At 60: The Long-Overlooked Legal Applications Of Finance’S Foundational Theorem, Michael S. Knoll
2018 marks the 60th anniversary of the publication of Franco Modigliani and Merton Miller’s The Cost of Capital, Corporation Finance, and the Theory of Investment. Widely hailed as the foundation of modern finance, their article, which purports to demonstrate that a firm’s value is independent of its capital structure, is little known by lawyers, including legal academics. That is unfortunate because the Modigliani-Miller capital structure irrelevancy proposition (when inverted) provides a framework that can be extremely useful to legal academics, practicing attorneys and judges.
Amending Corporate Charters And Bylaws, 2017 University of Pennsylvania Law School
Amending Corporate Charters And Bylaws, Albert H. Choi, Geeyoung Min
Recently, courts have embraced the contractarian theory that corporate charters and bylaws constitute a “contract” between the shareholders and the corporation and have been more willing to uphold bylaws unilaterally adopted by the directors. This paper examines the contractarian theory by drawing a parallel between amending charters and bylaws, on the one hand, and amending contracts, on the other. In particular, the paper compares the right to unilaterally amend corporate bylaws with the right to unilaterally modify contract terms, and highlights how contract law imposes various limitations on the modifying party’s discretion. More generally, when the relationship of contracting ...
Credit Risk And Corporate Governance, 2017 CUNY Hunter College
Credit Risk And Corporate Governance, Olivier Mugisho Mudekereza
School of Arts & Sciences Theses
Is the executive’s compensation structure influenced by the credit rating assigned to his company? I analyze a panel of U.S. public firms using the random-effects and fixed-effects estimations. Compared to firms with lower credit risk, I find that firms facing higher probability of default provide more incentives for their CEOs.
Ceo Political Ideology And Mergers And Acquisitions Decisions, 2017 Eastern Kentucky University
Ceo Political Ideology And Mergers And Acquisitions Decisions, Ahmed M. Elnahas, Kim Dongnyoung
EKU Faculty and Staff Scholarship
We examine the relation between CEOs political ideology and their firms' investment decisions, particularly their M&A decisions. Employing individual financial contributions data for the period from 1993 to 2006, we find that firm's investment decisions vary with CEO's political ideology. Our evidence indicates that Republican CEOs are less likely to engage in M&A activities. When they do undertake acquisitions, they are more likely to use cash as the method of payment, and their targets are more likely to be public firms and to be from the same industry. Further, Republican CEOs tend to avoid high information ...
Hedge Fund Performance And Derivative Hedging, 2017 University of Arkansas, Fayetteville
Hedge Fund Performance And Derivative Hedging, Yongjia Li
Theses and Dissertations
This dissertation is comprised of three essays which focus on hedge fund performance and derivative hedging. The first essay uses ETF returns as proxies for tradable risk factors in hedge fund performance evaluation and identifies contemporaneously relevant risk factors from the entire universe of ETFs. The model provides more informative estimates of alpha and beta coefficients for predicting hedge fund out-of-sample performance compared with other widely used hedge fund factor models. Portfolios of top alpha hedge funds selected by the model generate statistically significant out-of-sample performance that is substantially higher compared with portfolios selected by other models. In addition, the ...
Entrepreneurship Vs Paid Employment: Multiple Skills And Financing, 2017 Diego Portales University
Entrepreneurship Vs Paid Employment: Multiple Skills And Financing, Felipe Balmaceda Assoc Prof.
Cross Border Public Offering Of Securities In Fostering An Integrated Asean Securities Market: The Experiences Of Singapore, Malaysia And Thailand, 2017 Singapore Management University
Cross Border Public Offering Of Securities In Fostering An Integrated Asean Securities Market: The Experiences Of Singapore, Malaysia And Thailand, Wai Yee Wan
Research Collection School Of Law
In 2015, the Association of South-East Asian Nations (ASEAN) Economic Community was formally established and its aim was to achieve, among other things, an integrated securities market within ASEAN.
Before the formal establishment of the ASEAN Economic Community, in 2009, with a view towards achieving the objective of securities integration, Singapore, Malaysia and Thailand adopted the ASEAN Disclosure Standards, a set of harmonized disclosure standards for issuers making cross-border initial public offerings (IPOs). These participating Member States also entered into a framework for the expedited review for cross-listings. However, more than 5 years later, there is no documented use of ...
Do High Ceo Pay Ratios Destroy Firm Value?, 2017 Singapore Management University
Do High Ceo Pay Ratios Destroy Firm Value?, Qiang Cheng, Tharindra Ranasinghe, Sha Zhao
Research Collection School Of Accountancy
There is growing public concern over the rapid growth in CEO pay relative to average worker pay (CEO pay ratio). Critics contend that high CEO pay ratios could destroy firm value by damaging employee morale and/or signal CEO rent extraction. In this paper, we use a proprietary dataset to examine the relationship between CEO pay ratio and firm value/performance. Contrary to critics’ arguments, we find that industry-adjusted CEO pay ratios are positively associated with both firm value and performance. We also find that high CEO pay ratios are associated with higher quality acquisitions and stronger CEO turnover-performance sensitivity ...
Director Tenure Diversity And Board Monitoring Effectiveness, 2017 Singapore Management University
Director Tenure Diversity And Board Monitoring Effectiveness, Na Li, Aida Sijamic Wahid
Research Collection School Of Accountancy
This study examines the impact of director tenure diversity on board effectiveness. We findthat tenure-diverse boards exhibit significantly higher CEO performance-turnoversensitivity and that firms with tenure-diverse audit committees are less likely to experienceaccounting restatements. Furthermore, we document that tenure-diverse compensationcommittees also award less excess compensation and are less likely toovercompensate. Even though tenure-diverse boards seem to exhibit superior monitoringperformance, there is limited evidence that their firms exhibit superior financialperformance. The findings suggest that recent calls for board renewal, to the extent that it would increase tenure diversity rather than just decrease average board tenure, may helpenhance board monitoring.
Post-Jgtrra Dividend Planning, 2017 Sacred Heart University
Post-Jgtrra Dividend Planning, Danny A. Pannese, Paul N. Iannone
The JGTRRA reduced the tax rate on dividends for individuals and lowered the accumulated earnings and personal holding company taxes for corporations until 2008. This article reviews some of the planning techniques corporations and shareholders can use to take advantage of the temporarily lower rates. One of the key provisions of the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA), if not the prime emphasis of the legislation, is Section 302's reduction in the individual tax rate on corporate dividends received to 15% (5% for individuals in the 15% and 10% brackets). In an emerging trend, the ...
Bitcoin And The Blockchain As Possible Corporate Governance Tools: Strengths And Weaknesses, Fiammetta S. Piazza
Penn State Journal of Law & International Affairs
No abstract provided.
Estimating The Cost Of Equity In Emerging Markets: A Case Study, 2017 Sacred Heart University
Estimating The Cost Of Equity In Emerging Markets: A Case Study, Benoit Boyer, Ralph Lim, Bridget Lyons
WCOB Faculty Publications
A firm's weighted average cost of capital is an integral component in capital budgeting decisions and in assessment of the firm's enterprise and equity value. Estimation of the cost of equity is a key component in determining the overall cost of capital. The calculation of the cost of equity for U.S. based corporations is relatively straightforward and is most often estimated as a function of the U.S. risk-free rate, the firm's beta value, and an estimate of the average risk premium associated with equity investments compared to risk free assets. Since U.S. financial markets ...
Ceo Contractual Protection And Debt Contracting, 2017 Singapore Management University
Ceo Contractual Protection And Debt Contracting, Qiang Cheng, Xia Chen, Alvis K. Lo, Xin Wang
Research Collection School Of Accountancy
CEO employment agreements and severance pay agreements are prevalent among S&P1500 firms. While prior research has examined their impact on corporate decision from shareholders’ perspective, there is little research on their impact from debtholders’ perspective. We examine the effect on debt contracting of CEO contractual protection, in the form of employment agreements and severance pay agreements. We find that compared with other loans, loans issued by firms with CEO contractual protection contain more financial covenants, particularly performance covenants, are more likely to have performance pricing provisions, and have higher loan spreads. We further find that this effect increases with ...
Do Environmentally Friendly Companies Outperform Environmentally Unfriendly Companies In Financial Markets? An Analysis Of Financial Performance & Corporate Social Responsibility, 2017 Union College - Schenectady, NY
Do Environmentally Friendly Companies Outperform Environmentally Unfriendly Companies In Financial Markets? An Analysis Of Financial Performance & Corporate Social Responsibility, Katherine E. Quinlan
Honors Theses and Student Projects
Over the last century, the ideology regarding the relationship between humans and the natural world has shifted from a period of major exploitation to a time of conservation and appreciation. Recent catastrophic events such as Hurricane Katrina in 2005, a result of sea level rise and wetland degradation, have really opened the public's eyes to the negative impacts that humans have on the environment, and what will come if we do not change our ways. Implementing sustainability practices has become a norm, if not a necessity, in the corporate world if companies wish to prosper. Using cross-sectional data from ...
Short Interest, Returns, And Unfavorable Fundamental Information, 2017 Singapore Management University
Short Interest, Returns, And Unfavorable Fundamental Information, Ferhat Akbas, Ekkehart Boehmer, Bilal Erturk, Sorin Sorescu
Research Collection Lee Kong Chian School Of Business
Several months before information becomes public, the level of short interest contains value-relevant information about publicly traded corporations. Short interest predicts future bad news, negative earnings surprises, and downward revisions in analyst earnings forecasts. This informational content is stronger for stocks that are harder to short. We also find that nearly half of the well-known cross-sectional relation between short interest and future stock returns is related to future changes in firms’ value-relevant information. Our results suggest that short interest predicts future returns, in part, due to short sellers’ ability to uncover unfavorable information about firms.
Political Contributions And Firm Performance: Evidence From Lobbying And Campaign Donations, 2017 University of New Orleans
Political Contributions And Firm Performance: Evidence From Lobbying And Campaign Donations, Omer Unsal
University of New Orleans Theses and Dissertations
The following dissertation contains two distinct empirical essays which contribute to the overall field of Financial Economics. Chapter 1 titles as “Corporate Lobbying, CEO Political Ideology and Firm Performance”. We investigate the influence of CEO political orientation on corporate lobbying efforts. Specifically, we study whether CEO political ideology, in terms of manager-level campaign donations, determines the choice and amount of firm lobbying involvement and the impact of lobbying on firm value. We find a generous engagement in lobbying efforts by firms with Republican leaning-managers, which lobby a larger number of bills and have higher lobbying expenditures. However, the cost of ...
Valuation And Value Drivers For Us Based Airlines, An Analysis Of An Industry, 2017 University of Tennessee, Knoxville
Valuation And Value Drivers For Us Based Airlines, An Analysis Of An Industry, Ryan Caveney
University of Tennessee Honors Thesis Projects
No abstract provided.
Corporate In-House Human Capital Investment In Tax Planning, 2017 Singapore Management University
Corporate In-House Human Capital Investment In Tax Planning, Xia Chen, Qiang Cheng, Travis Chow, Yanju Liu
Research Collection School Of Accountancy
In-house human capital investment in the tax function is a significant input to a firm’s tax planning. Yet, due to lack of data, there is little empirical evidence on whether corporate in-house tax departments are associated with effective tax planning. We examine this issue using hand-collected data on corporate tax employees in S&P1500 firms. We find that firms with larger in-house tax departments are more effective in tax planning: they have lower tax rates, report lower uncertain tax benefits, and exhibit less volatile tax rates. The results are stronger for firms with in-house tax departments that have a ...
A Changing Industry: An Analysis Of The Effects Of Direct-To-Consumer Advertising On The Insurance Industry, 2017 University of Connecticut
A Changing Industry: An Analysis Of The Effects Of Direct-To-Consumer Advertising On The Insurance Industry, James Bonvicini
Honors Scholar Theses
Direct-to-consumer selling is a shift in the strategies of many companies. As technology continues to play a prominent role in business, companies need to adapt to accommodate, and take advantage of, new opportunities that become available. Many insurance companies are now focusing on improving their direct-to-consumer selling efforts and attracting consumers with new online selling platforms. This thesis looks at the changes inside and outside of the industry that led to this direct method of selling and the impact that this has on the intermediaries in the industry, with a focus on property and casualty businesses. Additionally, this thesis takes ...