Business Commons^™

External Administration In Corporate Insolvency And Reorganisation: The Insider Alternative, Larelle Chapple, James Routledge

James Routledge

This article considers the merits of alternative policy approaches to management of companies in insolvency administration, in particular from an identity economics theoretical perspective. The use of this perspective provides a novel assessment of the policy alternatives for insolvency administration, which can be characterised as either following the more flexible United States Chapter 11-style debtor-in-possession arrangement, or relying on the appointment of an external administrator or trustee to manage the insolvent company, who automatically displaces incumbent management. This analysis indicates that stigma and reputational damage from automatic removal of managers in voluntary administration leads to “identity loss” and that an …

Falling Knives: Extreme Value Investing, Ladd Kochman, James Tompkins

Ladd Kochman

We identified 979 stocks with year-ending losses of 60 percent or more during the 1993-2002 period. Post-fall returns extended our analysis through 2005. Unlike previous research, we screened our "falling knives" for financial strength to promote a greater likelihood of recovery and minimize any survivorship bias. When we added the constraint of Altman Z-Scores > 3.0, our data set shrank to 790 stocks and produced two-year and three-year average annual returns that tripled their market counterparts.

An Analysis Of Delta's Oil Refinery Acquisition, Wilfred Manuela, Dawna Rhoades, Tamilla Curtis

Dr. Tamilla Curtis

Attaining Legitimacy By Employee Information In Annual Reports, Pamela Kent, Tamara Zunker

Tamara Zunker

Purpose – The purpose of this study is to provide evidence on the category, quantity and quality of voluntary employee-related information Australian listed companies disclose in their annual report. An explanation is also sought to determine whether companies adopt employee-related disclosures to legitimise their relationship with society. Voluntary adoption of corporate governance best practice recommendations is used as a measure of companies’ attempts to attain ex ante legitimacy. Media agenda setting theory is used as a measure of an attempt to gain legitimacy ex post following adverse publicity from the media. Design/methodology/approach – The annual reports of all companies with …

How The Australian Ban On Short Selling During The Gfc Affected Market Quality And Volitility, Uwe Helmes, Julia Henker, Thomas Henker

Thomas Henker

We examine the effects of the short selling ban, imposed by Australian regulators in the wake of the global financial crisis, on trading of financial stocks. Unlike other developed markets, where regulators imposed short-selling restrictions for brief periods of time at the height of the financial crisis, the ban on short selling of financial stocks on the Australian Stock Exchange lasted eight months, including both the tumultuous end of 2008 and the calmer period up to May 2009. Our control group consists of matched Canadian financial institutions which were unaffected by a short selling ban. We analyze the impact of …

Attaining Legitimacy By Employee Information In Annual Reports, Pamela Kent, Tamara Zunker

Pamela Kent

Purpose – The purpose of this study is to provide evidence on the category, quantity and quality of voluntary employee-related information Australian listed companies disclose in their annual report. An explanation is also sought to determine whether companies adopt employee-related disclosures to legitimise their relationship with society. Voluntary adoption of corporate governance best practice recommendations is used as a measure of companies’ attempts to attain ex ante legitimacy. Media agenda setting theory is used as a measure of an attempt to gain legitimacy ex post following adverse publicity from the media. Design/methodology/approach – The annual reports of all companies with …

Dead Cat Bounce [Radio Interview], Bruce Vanstone

Bruce Vanstone

Regular 'Word of the Week' segment. Interview with Professor Bruce Vanstone, Bond University, regarding 'dead cat bounce'. Vanstone says it's a Wall Street term which means a stock has fallen from a very high price to a low price in small period of time. Vanstone notes a small upward spike but the price will normally tend to decline again. Vanstone uses Billabong as an example to illustrate a 'dead cat bounce'.

Singapore Airlines: Price Effects Of Restriction On Foreign Ownership, Swee Sum Lam, Francis Koh, Yuen Kin Chia

Francis Koh

No abstract provided.

The Risk And Price Performance Of New Equity Issues In Singapore, Francis Koh, Simon Tee

Francis Koh

No abstract provided.

The Growth Of Singapore Companies, Francis Koh, W. Kwok

Francis Koh

No abstract provided.

Synergistic Gains From Corporate Acquisitions And The Impact On Shareholders' Wealth, Francis Koh, Kok Fai Phoon

Francis Koh

No abstract provided.

Capital Structure Behaviour Of Firms In Singapore: An Empirical Analysis, Francis Koh, Kok Fai Phoon

Francis Koh

No abstract provided.

An Empirical Study Of Abnormal Dollar Returns From Corporate Takeovers, Francis Koh, Soo-Hoon Lee

Francis Koh

No abstract provided.

Corporate Strategy, Analyst Coverage, And The Uniqueness Discount, Lubomir Litov, Todd Zenger, Patrick Moreton

Lubomir P. Litov

No abstract provided.

Governance-Default Risk Relationship And The Demand For Intermediated And Non-Intermediated Debt, Safdar Khan

Safdar Khan

No abstract provided.

Qep And Bank Liquidity Creation: Evidence From Japan, Elisabeta Pana

Elisabeta Pana

The 2001-2006 Japanese quantitative easing policy (QEP) represents the most prominent example of unconventional monetary policy used prior to the recent financial crisis. This paper contributes to the current debate over the effectiveness of Japan’s QEP by documenting the changes in absolute amount of liquidity created by Japanese banks during the period of 2001-2007. Using the liquidity creation measure developed by Berger and Bouwman (2009), we document the impact of macroeconomic factors and bank characteristic on liquidity creation. The analysis is conducted in a multivariate dynamic panel regression framework using a dataset comprised of 120 Japanese banks containing balance sheet …

Planned Behavior Entrepreneurship And Intention To Create A New Venture Among Young Graduates, H. Mushtaq Ahmad, G. S K. Niazi, Ahmed Imran Hunjra, Kashif Ur Rehman, Rauf I. Azam

Ahmed Imran Hunjra (PhD)

Critical Success Factors Of Projects, Fida Hussain Hussain, Ahmed Imran Hunjra, Majed Rashid

Ahmed Imran Hunjra (PhD)

Relationship Between Customer Satisfaction And Service Quality Of Islamic Banks, Muhammad Naeem Akhtar, Ahmed Imran Hunjra, Syed Waqar Akbar, Kashif Ur Rehman, Ghulam Shabbir Khan Niazi

Ahmed Imran Hunjra (PhD)

Refocusing Corporate Strategy: Creating A Profit Orientation, Alan Preston, Stephen Kelly

Adjunct Professor Stephen J Kelly

The structure and effectiveness of a profit segmentation method designed to enhance a business’ understanding of the profit impact of strategic plans is investigated in this study. It is argued that a profit-centric segmentation-orientation is more effective in aligning organization resources for profit optimization than a simplistic fixation on market share, as it provides insight and direct correlation with two critical dimensions of organizational performance; the complex relationship between sales revenue and profitability and the architecture of market share and corporate profitability. Results from research that examined outcomes from the broad based adoption of this method by a large industrial …

Redefining Medical Tourism, Arcot Desai Narasimhalu

Arcot Desai NARASIMHALU

No abstract provided.

Creditor Rights And Corporate Risk-Taking, Lubomir Litov, Yakov Amihud, Viral Acharya

Lubomir P. Litov

No abstract provided.

The Effect Of Taxes On Multinational Debt Location, Matteo Arena, Andrew Roper

Matteo P. Arena

We provide new evidence that differences in international tax rates and tax regimes affect multinational firms' debt location decisions. Our sample contains 8287 debt issues from 2437 firms headquartered in 23 different countries with debt-issuing subsidiaries in 59 countries. We analyze firms' marginal decisions of where to issue debt to investigate the influence of a comprehensive set of tax-related effects, including differences in personal and corporate tax rates, tax credit and exemption systems, and bi-lateral cross-country withholding taxes on interest and dividend payments. Our results show that differences in personal and corporate tax rates, the presence of dividend imputation or …

Dividend Drop Ratios And Tax Theory: An Intraday Analysis Under Different Tax And Price Quoting Regimes, Vyas Balasubramaniam, William Bertin, Thomas Henker, Laurie Prather

Thomas Henker

We calculate dividend drop ratios over periods with changing quotation and taxation frameworks to assess the validity of competing explanations. Using intraday prices adjusted for non-trading, we provide a more accurate picture of price changes due to dividend payments than those produced in previous literature. Intraday estimates for dividend drop ratios are consistently higher than those calculated with end of day prices. Further findings indicate that stocks trading ex-dividend, on average, underperform the market over the following month. We attribute this phenomenon to dividend capture trading by tax advantaged and tax indifferent market participants.

Patterns Of Debt Use In Small Businesses: A Non-Parametric Analysis, Atreya Chakraborty

Atreya Chakraborty

This paper uses non-parametric techniques to examine patterns of debt use by small firms and how such patterns differ across firm categories. The methodological goal is to use the richness of the firm level data and allow convincing presentations with minimum of assumptions. The procedures used provide easily comprehendible graphical descriptions of the data. The procedures augment what can be discerned from descriptive statistics by accounting for differential weights and allowing for clustering that is a native feature of cross-sectional data. We also investigate how firms could benefit if credit availability improves. Though a model-based analysis would be required to …

Equity Valuation In The Coal Seam Gas Industry, Keith Duncan, Simone Kelly, Ray Mcnamara

Ray McNamara

The coal seam gas industry is an important and rapidly developing sector of the Australian mining industry and the economy as a whole. This sector provides an excellent site to test the relevance of the Hotelling Valuation Principle (HVP) in explaining the market capitalisation of this industry sector. In addition, the test enabled the test of which reserve classification best explains the market capitalisation of firms in the industry.Currently, the majority of listed firms in this sector do not have positive cash flows from the sale of gas. The HVP posits that market values are a function of company reserves. …

Equity Valuation In The Coal Seam Gas Industry, Keith Duncan, Simone Kelly, Ray Mcnamara

Simone Kelly

The coal seam gas industry is an important and rapidly developing sector of the Australian mining industry and the economy as a whole. This sector provides an excellent site to test the relevance of the Hotelling Valuation Principle (HVP) in explaining the market capitalisation of this industry sector. In addition, the test enabled the test of which reserve classification best explains the market capitalisation of firms in the industry.Currently, the majority of listed firms in this sector do not have positive cash flows from the sale of gas. The HVP posits that market values are a function of company reserves. …

Equity Valuation In The Coal Seam Gas Industry, Keith Duncan, Simone Kelly, Ray Mcnamara

Keith Duncan

The coal seam gas industry is an important and rapidly developing sector of the Australian mining industry and the economy as a whole. This sector provides an excellent site to test the relevance of the Hotelling Valuation Principle (HVP) in explaining the market capitalisation of this industry sector. In addition, the test enabled the test of which reserve classification best explains the market capitalisation of firms in the industry.Currently, the majority of listed firms in this sector do not have positive cash flows from the sale of gas. The HVP posits that market values are a function of company reserves. …

Innate And Discretionary Accruals Quality And Corporate Governance, Pamela Kent, James Routledge, Jenny Stewart

Pamela Kent

This paper extends previous research on the association between corporate governance mechanisms and accruals quality. We derive measures of the discretionary and innate components of accruals quality and regress them against corporate governance characteristics. For discretionary accruals, we find use of a Big 4 audit firm and a larger audit committee as the primary governance mechanisms associated with higher accruals quality. For innate accruals quality, we find that higher quality is associated with an independent board of directors, a larger, more independent and more active audit committee, and use of a Big 4 audit firm. Our findings suggest a stronger …

Application Of Stakeholder Theory To Corporate Environmental Disclosures, Pamela Kent, Christopher Chan

Pamela Kent

Ullmann's (1985) three-dimensional model of social responsibility disclosure is tested to determine whether it can be operationalized to help explain the quantity and quality of environmental disclosures in Australian annual reports. The stakeholder power dimension of Ullmann's framework is significant in explaining environmental disclosures while content of the mission statement and existence or otherwise of environmental or social responsibility committees also find strong statistically significant support in the results. Ullmann's stakeholder theory has previously been applied to explain social disclosures in general (Roberts, 1992) and is an important theory because it introduces a measure of strategy. The current paper demonstrates …