Empirical Studies Of Esg Scores With Corporate Credit Spreads (Insights From Popularity-Based Pricing),
2022
Sacred Heart University
Empirical Studies Of Esg Scores With Corporate Credit Spreads (Insights From Popularity-Based Pricing), Eugene Okyere-Yeboah
Doctoral Dissertations (DBA)
This study examines various factors or characteristics (risk and non-risk) that determine a firm’s credit risk premium, as measured by its credit default swap (CDS) spread, with a particular focus on the impact of environment, social, and governance (ESG) scores. The framework employed is a general equilibrium asset pricing model which integrates classical and behavioral finance elements, known as popularity-based asset pricing. It treats all attributes or characteristics of an asset as ”factors” to which investors assign a degree of popularity, which changes over time. Non-risk characteristics are classified as ”tastes” or ”disagreements”, Fama French (2007). Firms’ degree of adherence …
Giving Shareholders Real Rights, Reducing Excessive Executive Pay, And Reducing One‐Size‐Fits‐All Regulation,
2022
Rutgers University
Giving Shareholders Real Rights, Reducing Excessive Executive Pay, And Reducing One‐Size‐Fits‐All Regulation, Dan Palmon, Gary Kleinman, Ann F. Medinets
Department of Accounting and Finance Faculty Scholarship and Creative Works
This paper questions the effectiveness of shareholders’ protection from managers who may make choices contrary to the shareholders’ interests. We focus on “silent shareholders” who rarely vote because their goal is purely financial return with no intention or ability to participate in corporate strategies. Since they have virtually no influence on company policies, we argue that they should not be viewed as firm owners, but as consumers of managerial services. Therefore, we suggest the creation of a new class of “capital contract” stock that would grant silent shareholders an explicit legal contract that clearly specifies their rights and compensations in …
Strategic Disclosure And Debt Covenant Violation,
2022
Columbia University
Strategic Disclosure And Debt Covenant Violation, Thomas Bourveau, Derrald Stice, Rencheng Wang
Research Collection School Of Accountancy
This study examines how managers change their forecasting behavior as a debt covenant violation approaches. Using a sample of firms that disclose a debt covenant violation (DCV) in their financial statements, we find that management forecasts are more optimistic in the period leading up to a DCV, and this result is not driven by managers’ unintentional forecast bias. Additionally, we find that managers who are more optimistic in their forecasts also take on more risk and increase dividend payouts before violations, consistent with managers strategically using earnings forecasts to justify their activities favorable to shareholders but likely to be curtailed …
Trusting The Stock Market: Further Evidence From Ipos Around The World,
2022
York University
Trusting The Stock Market: Further Evidence From Ipos Around The World, Kiridaran Kanagaretnam, Kiat Bee Jimmy Lee, Chee Yeow Lim, Gerald J. Lobo
Research Collection School Of Accountancy
Using an international sample of IPO firms from 36 countries and a country-level index for societal trust, we find strong evidence that societal trust is negatively associated with the degree of IPO underpricing. In cross-sectional analyses, we find that the effect of societal trust in reducing IPO underpricing is more pronounced when the information environment is less transparent, when the stock market environment is less robust, and when legal institutions are weaker, settings where the effect of trust is likely to be more salient. Our study contributes to and extends the literature by providing strong evidence that an informal institution …
Working Capital Management Of Manufacturing Companies In Bangladesh: What Factors Make Significant Impact?,
2022
University of Liberal Arts Bangladesh
Working Capital Management Of Manufacturing Companies In Bangladesh: What Factors Make Significant Impact?, Sumaiya Zaman
Journal of Global Business Insights
The paper aims to determine factors that make a significant impact on working capital management of a manufacturing company in Bangladesh. Of 221 service and manufacturing firms listed on the Dhaka Stock Exchange, 109 companies are chosen based on data availability for the five-year period 2014-2018. The study examines literature on working capital management and tests theory on manufacturing companies listed on the Dhaka Stock Exchange. Cash conversion cycle is used as a measurement of working capital efficiency. Financial ratios representing six aspects of company's financial performance are taken as explanatory variables. They represent company asset management, debt structure, growth, …
Subsidiary Governance And Corporate Tax Planning: The Effect Of Parent-Subsidiary Common Directors And Offficers,
2022
Singapore Management University
Subsidiary Governance And Corporate Tax Planning: The Effect Of Parent-Subsidiary Common Directors And Offficers, Xin Wang, Yongxin Xu, Liandong Zhang, Gaoping Zheng
Research Collection School Of Accountancy
Top executives of the parent company often take positions as the directors and officers (D&Os) of subsidiaries. These parent-subsidiary common D&Os have better access to subsidiary information and can exert more influence over subsidiary operations. Therefore they can better identify tax-planning opportunities and coordinate tax arrangements. Using the mandatory disclosure of top executives' subsidiary positions for Chinese listed firms, we find that effective income tax rate is lower for firms with common D&Os. The tax-saving effect is stronger for firms with more intangible assets and with related-party transactions involving subsidiaries. The effect is also stronger when common D&Os have positions …
Corporate Social Responsibility Influence On Organizational Performance: Moderating Effect Of Corporate Reputation Performance: Moderating Effect Of Corporate Reputation,
2022
Dayalbagh Educational Institute, Agra, 1/7152, Shivaji Park, Shahdara, Delhi, India
Corporate Social Responsibility Influence On Organizational Performance: Moderating Effect Of Corporate Reputation Performance: Moderating Effect Of Corporate Reputation, Eti Jain, Anuja Shukla, Shiv K. Sharma, Arvind Kumar
Management Dynamics
No abstract provided.
Essays On Insider Trading, Innovation, And Political Economy,
2022
Mississippi State University
Essays On Insider Trading, Innovation, And Political Economy, Jiawei Chen
Theses and Dissertations
I study how insider trading interacts with the political economy, regulators, and other corporate governance mechanisms. In the first section, I examine the impact of insider trading restriction enforcement on firm innovation. U. S. Securities and Exchange Commission enforcement actions are intended to protect investors and limit expropriation by firm insiders, but enforcement could impact insiders’ incentives to contribute to value enhancing activities. Therefore, I explore how corporate innovation and performance respond to insider trading restrictions imposed by firms and regulators. Using manually collected data on SEC indictments against corporate insiders, I document more innovative activity following external insider trading …
Three Essays On Insider Trading,
2022
Mississippi State University
Three Essays On Insider Trading, Haoyang Xiong
Theses and Dissertations
In the first essay we study whether and how personal off-the-job managerial indiscretions impact corporate insiders’ trading behavior. We find that executives accused of personal indiscretions earn significantly higher abnormal returns from their insider purchases and sales in a 15-day window around each trade. The results are robust to matched sample analyses. Further, insiders’ historical trading pattern or corporate culture has less explanatory power than personal attributes. We also document that exposure of these indiscretions to the public provides a disciplinary effect, as insider trading profits significantly drop following the announcement of an indiscretion, despite this drop being temporary. Corporate …
How To Create Cash Flows That Give A Priori Irrs?,
2022
Nanyang Technological University
How To Create Cash Flows That Give A Priori Irrs?, Charlie Charoenwong, Xinxin Li, Chee K. Ng
Southwestern Business Administration Journal
We illustrate algebraically the way to numerically derive the cash flows of an investment project yielding a set of desired IRRs. This is significant given the dearth of practice questions with the appropriate cash flow numbers, and their corresponding sign, in widely adopted Finance textbooks that will allow students to find multiple IRRs as learning exercises. The note serves to fill that void by allowing the readers to change the IRR inputs in an Excel spreadsheet and have the corresponding cash flows output ready for an assignment. Instructors can use the Excel codes to create different cash flows that yield …
Sustainability: Jobs And Skills For The Accountancy Profession,
2022
Singapore Management University
Sustainability: Jobs And Skills For The Accountancy Profession, Jiwei Wang, Holly I. Yang, Liandong Zhang
Research Collection School Of Accountancy
Sustainability is a megatrend that is changing the way we think about business and offering new opportunities and jobs for the accountancy sector. At the 26th Conference of the Parties (COP26), also known as the United Nations Climate Change Conference, the international business community was galvanised into action. Singapore, too, has intensified its sustainability plans with the Singapore Green Plan 2030
Bank Ownership And Decline In Loan Growth Due To The Pandemic,
2022
Universitas Indonesia, Indonesia
Bank Ownership And Decline In Loan Growth Due To The Pandemic, Ruthana Bitia, Zuliani Dalimunthe
The Indonesian Capital Market Review
This study aims to analyze the effect of bank ownership structure on loan growth before and during the pandemic. Specifically, we developed four models to capture different loan types provided in the Indonesian banking system; working capital, investment, consumer, and total loan growth. This study used 150 observations of commercial banks for 2019 (before the pandemic) and 2020 (during the pandemic). We conducted the regression method to test hypotheses. The main finding of this study was that foreign banks’ consumer credit growth significantly lower than domestic banks. Similar findings occurred for other types of loans, and this conclusion has controlled …
“Fiscal Trap”, The Case Of Greece,
2022
College of Mount Saint Vincent
“Fiscal Trap”, The Case Of Greece, Titos Ritsatos
Southern University College of Business E-Journal
Present research aims at the introduction of the term “Fiscal Trap” in economic literature, as a comprehensive definition of the economic situation in which any available combination of fiscal-only policy measures (tax increases and austerity measures), would fail to fulfill fiscal targets during periods of recession. Using recent experience from the case of Greece, an ex-post evaluation of adopted policy effectiveness is pursued. Fiscal austerity and increased taxation enforced in Greece during the years 2009-2012, resulted in decreased tax revenues, lower GDP and increased debt-to-GDP ratio. In order to slip away from the vicious cycle generated by austerity and tax …
The Terrorist Laffer Curve:Rationality And Insurgency In Iraq, 2004-2008,
2022
Coastal Carolina University
The Terrorist Laffer Curve:Rationality And Insurgency In Iraq, 2004-2008, Dennis S. Edwards
Southern University College of Business E-Journal
While the original framework by Arthur Laffer focused on tax rates and the resulting revenue from such taxation, the Laffer curve has been applied to other studies in behavior as well. This paper details evidence of a Laffer curve in Iraq with respect to terrorist violence and Iraqi public support of that violence against the U.S.-led coalition forces. As insurgents began killing more Iraqi citizens in their attacks on U.S.-led forces, the increased lethality caused initial support of such violence to erode. As a result, the high-level terrorist hierarchy has suggested that its operatives reduce lethality and indiscriminate bombings.
Equity Market Structure And The Persistence Of Unsolved Problems: A Microstructure Perspective,
2022
Baruch College
Equity Market Structure And The Persistence Of Unsolved Problems: A Microstructure Perspective, Robert A. Schwartz, James Ross, Deniz Ozenbas
Department of Accounting and Finance Faculty Scholarship and Creative Works
This article presents a brief historical perspective on the evolution of equity market structure and considers implications microstructure analysis has had for improving market structure. Since the 1975 Securities Acts Amendments mandated the development of a National Market System, the robust growth of institutional investing and the impact of striking technological change have been transformative. Yet, market impact costs and price discovery noise continue to accentuate short-period returns variance, and the article presents empirical evidence of how sizable that accentuation is. In dealing with this problem, the authors focus on the rules that govern how orders are integrated together and …
The Return Of The Call Auction,
2022
Montclair State University
The Return Of The Call Auction, Deniz Ozenbas, Robert A. Schwartz
Department of Accounting and Finance Faculty Scholarship and Creative Works
A call auction is a form of trading that died out in the precomputer age but has made its reentrance in electronic markets and is currently a significant component of major stock markets globally. In contrast with a continuous market in which a transaction is made any time a buy and a sell order meet or cross in price, call auctions batch orders together for execution in multilateral trades at specific points in time. The electronic call, an important innovation in market structure, has unique benefits concerning liquidity provision, intraday volatility control, and price discovery accuracy. NASDAQ introduced electronic calls …
Contracting With Controllable Risk,
2022
University of Pennsylvania
Contracting With Controllable Risk, Christopher S. Armstrong, Stephen A. Glaeser, Sterling Huang
Research Collection School Of Accountancy
We examine how executives' ability to control their firms' exposure to risk affects the design of their incentive-compensation contracts. Our natural experimental evidence shows that exchange-traded weather derivatives allow executives to control their firms' exposure to weather risk. Once these derivatives became available, those executives who use them to hedge experience relative reductions in their total compensation and equity incentives. The decline in compensation is consistent with a reduction in the risk premium that executives receive for exposure to weather risk. The decline in equity incentives is consistent with the relation between risk and incentives shifting in a complementary direction …
Evaluating The Effectiveness Of Tax Objection Review In Indonesia’S Tax Authority,
2022
Universitas Indonesia
Evaluating The Effectiveness Of Tax Objection Review In Indonesia’S Tax Authority, Yuli Trisnawati, Siti Nuryanah
Jurnal Akuntansi dan Keuangan Indonesia
An evaluation of the effectiveness of tax objection review by the Directorate General of Taxes (DGT) is required due to the increasing number of tax disputes that continue to litigation and a low winning rate for DGT in tax court (approximately 40%). This study aims to analyze the effectiveness of reviewing tax objections at DGT using Campbell's Effectiveness Theory (1989) with criteria of programs and goals success, program satisfaction, inputs and outputs conformity, and overall goal achievement. This is case study research with a qualitative method presented in a descriptive analysis. Data was collected through documentation, interviews, and satisfaction surveys. …
Biodiversity Disclosure Of Indonesian Companies And The Role Of The Board Of Commissioners,
2022
Universitas Indonesia
Biodiversity Disclosure Of Indonesian Companies And The Role Of The Board Of Commissioners, Ahmad Hambali, Desi Adhariani
Jurnal Akuntansi dan Keuangan Indonesia
The environmental damage that occurs on a large scale has an impact on reducing biodiversity. Biodiversity has an important role that is useful for human life and plays a central role in economic development. This condition makes various parties aware of their role in preventing further damage. Companies, whether directly or indirectly, owe a great deal to the environment. This study seeks to examine the role of the Board of Commissioners as proxied by the size of the Board of Commissioners, the proportion of Independent Boards, and the proportion of women on the Board of Commissioners as a corporate governance …
Impact Of Capital Structure On Performance Of Microfinance Institutions,
2022
COMSATS University & National University of Modern Languages, Islamabad
Impact Of Capital Structure On Performance Of Microfinance Institutions, Rukhsana Bibi, Naveed Raza, Attiya Yasmin Javid
Business Review
Microfinance institutions play a crucial role in poverty alleviation and provide financial services to low-income households. Microfinance growth rate is quite high in Asia but an undesirable development is achieved due to high borrowing cost and inadequate reserves. For microfinance institutions, there is a need to determine a suitable mix of financing to stay sustainable. This study examines the impact of capital structure on the performance of microfinance institutions in Asia. Using a unique unbalanced panel data set of 253 microfinance institutions from 2000 to 2015, performance is measured in terms of sustainability, financial performance, social performance and efficiency. It …
