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Full-Text Articles in Business
Drivers Behind The Monitoring Effectiveness Of Global Institutional Investors: Evidence From Earnings Management, Incheol Kim, Steve Miller, Hong Wan, Bin Wang
Drivers Behind The Monitoring Effectiveness Of Global Institutional Investors: Evidence From Earnings Management, Incheol Kim, Steve Miller, Hong Wan, Bin Wang
Finance Faculty Research and Publications
This paper studies the drivers behind the monitoring effectiveness of institutional investors in curbing earnings management in an international setting. We identify three distinct drivers and propose two competing hypotheses: the hometown advantage hypothesis predicts that because of proximity to monitoring information, domestic institutions have a comparative advantage over foreign institutions in deterring earnings management, whereas the global investor hypothesis predicts that foreign institutions have a comparative advantage because of their proclivity toward activism and ability to deploy superior monitoring technologies. Consistent with the hometown advantage hypothesis, in aggregate, domestic, but not foreign, institutional ownership is associated with less earnings …
Capital Structure And Political Risk In Asia-Pacific Real Estate Markets, George D. Cashman, David M. Harrison, Michael J. Seiler
Capital Structure And Political Risk In Asia-Pacific Real Estate Markets, George D. Cashman, David M. Harrison, Michael J. Seiler
Finance Faculty Research and Publications
This study investigates the determinants of capital structure decisions by real estate firms, with a specific focus on the impact of political risk on leverage. Using a sample of Asia-Pacific REITs and listed property trusts, we find those firms with properties located in countries characterized by relatively high degrees of political risk, such as political instability, and/or greater uncertainty in the ability to repatriate and monetize profits from international investment activities, employ less debt than their counterparts operating in more politically stable environments. This core finding remains robust to alternative sample selection criteria including the division of the sample into …
Clawback Provisions In Real Estate Investment Trusts, George D. Cashman, David M. Harrison, Christine A. Panasian
Clawback Provisions In Real Estate Investment Trusts, George D. Cashman, David M. Harrison, Christine A. Panasian
Finance Faculty Research and Publications
Using a sample of 195 unique real estate investment trusts (REITs), we examine factors related to the adoption of clawback provisions within managerial compensation contracts. In general, we find strong and consistent empirical evidence that clawback provision are directly related to firm size, complexity, leverage, growth options, monitoring incentives, and CEO performance incentives. We also find that clawbacks are associated with enhanced market and accounting performance, with stronger performance relations observed for adoption decisions tied directly to regulatory mandates. In sum, we conclude compensation clawback provisions represent a value-relevant, strategic governance mechanism for REITs.
How Informative Is Floating Nav When Securities Trade Infrequently?, Kyle D. Allen, George D. Cashman, Drew B. Winters
How Informative Is Floating Nav When Securities Trade Infrequently?, Kyle D. Allen, George D. Cashman, Drew B. Winters
Finance Faculty Research and Publications
We examine if a floating net asset value (NAV) increases the transparency of risk for investors. Using closed-income fixed income funds we find little evidence that a floating NAV helps investors better understand the value and risk of a fund when a fund's assets trade infrequently. This potentially informs the debate regarding the adoption of a floating NAV in the money market industry. Our results suggest that it is unlikely that the benefits of floating NAV will outweigh the costs.
Determinants Of Industrial Property Rents In The Chicago Metropolitan Area, David E. Clark, Anthony Pennington-Cross
Determinants Of Industrial Property Rents In The Chicago Metropolitan Area, David E. Clark, Anthony Pennington-Cross
Finance Faculty Research and Publications
Urban economists have long understood the theoretical importance of transportation infrastructure and accessibility on the location choice of households and firms. We utilize a readily available data set of transaction rents in the Chicago metropolitan area to investigate the determinants of industrial property rents. Among the factors considered are proximity to transportation infrastructure, characteristics of the property, the term structure of lease agreements, and local attributes of the neighborhood. Empirical results suggest property, lease, and local demographics play important roles in determining rents. Despite the fact that industrial property tends to locate very close to rail lines and interstate highways, …