Download or read book Does Information Asymmetry Matter to Equity Pricing Evidence from Firms Geographic Location written by Sadok El Ghoul and published by . This book was released on 2015 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: The scarcity of suitable proxies for asymmetric information has impeded empirical research from providing reliable evidence on whether information risk shapes equity pricing. In re-examining this unresolved question, we rely on firms' geographic distance from financial centers to gauge information asymmetry. We provide strong, robust evidence supporting the prediction that equity financing is cheaper for firms nearer central locations, implying that investors rationally require more compensation when information asymmetry is worse. The equity pricing role of geographic proximity is economically large with our coefficient estimates translating into firms located within 100 kilometers of the city center of the nearest of six major financial centers, or in their metropolitan statistical areas, enjoying equity financing costs that are 7 basis points lower. Our inferences are insensitive to measuring both the cost of equity capital and distance in several ways, controlling for corporate governance quality, and addressing endogeneity. Collectively, our analysis suggests that investors discount the price that they pay for their securities to reflect the greater information asymmetry that ensues when firms are far from major financial centers.
Download or read book Does Religion Matter to Equity Pricing written by Sadok El Ghoul and published by . This book was released on 2014 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: For a sample comprised of 36,105 U.S. firm-year observations from 1985 to 2008, we find that firms located in more religious counties enjoy cheaper equity financing costs. This result is robust to a battery of sensitivity tests, including alternative assumptions and model specifications, additional controls for noise in analyst forecasts, and various approaches to addressing endogeneity. In another set of tests, we find that the equity pricing role that religion plays comes predominantly from Mainline Protestants. We also document that the effect of religiosity on firms' cost of equity capital is larger for firms (periods) lacking alternative monitoring (regulation) mechanisms as measured by lower institutional ownership (the pre-SOX era), implying that religion plays a corporate governance role. Finally, we find that the importance of religion to equity pricing is concentrated in firms that suffer lower visibility, which tend to be more sensitive to local social and economic factors. By examining the links between religiosity and valuation at the firm level, we provide strong, robust evidence supporting the perspective that religion facilitates economic development.
Download or read book On Informal Institutions and Accounting Behavior written by Xingqiang Du and published by Springer Nature. This book was released on 2021-01-04 with total page 506 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book focuses on the Chinese context to investigate how informal institutions (Confucian culture and its dimensions, religion, political connections) in China affect accounting behaviors. This book tries to show that cultural influence and religious impacts in China are not trivial and increasingly important, and specifically, informal institutions have its bright and dark sides with regard to its effects on accounting behaviors. This book aims to investigate whether and how informal institutions (Confucian culture and its dimensions, religion, political connections) affect micro-level accounting behaviors, including but not limited to audit quality, financial misstatement, R&D, corporate misconducts, corporate philanthropy and corporate environmental responsibility. This book provides graduate students, scholars and practitioners in the fields of accounting, business administration and religion with an in-depth understanding about how informal institutions as a set of social norms affect micro-level accounting behaviors. First, this book is the first to focus on the Chinese context and investigate the effects of informal institutions on accounting behavior. Second, this book documents systematic evidence to show the bright and dark sides with regard to the relation between informal institutions and accounting behavior in China. Lastly, this book reveals informal institutions can serve as an important mechanism to affect accounting behaviors.
Download or read book Advances in Pacific Basin Business Economics and Finance written by Cheng-Few Lee and published by Emerald Group Publishing. This book was released on 2023-05-01 with total page 313 pages. Available in PDF, EPUB and Kindle. Book excerpt: Advances in Pacific Basin Business, Economics and Finance (APBBEF) is an annual series designed to focus on interdisciplinary research in finance, economics, and management among Pacific Rim countries.
Download or read book Critical Approaches to Institutional Translation and Interpreting written by Esther Monzó-Nebot and published by Taylor & Francis. This book was released on 2024-03-12 with total page 234 pages. Available in PDF, EPUB and Kindle. Book excerpt: This collection re-envisions the academic study of institutional translation and interpreting (ITI), uncovering the ways in which institutional practices have inhibited knowledge creation and encouraging stakeholders to continue to challenge the assumptions and epistemics which underpin the field. ITI is broadly conceived here as translation and interpreting delivered in or for specific organizations and institutional social systems, spanning national, supranational, and international organizations as well as financial markers, universities, and national courts. This volume is organized around three sections, which collectively interrogate the knower – the field itself – to engage in questions around “how we know what we know” in ITI and how institutions have contributed to or hindered the social practice of knowledge creation in ITI studies. The first section challenges the paths which have led to current epistemologies of ignorance while the second turns the critical lens on specific institutional practices. The final section explores specific proposals to challenge existing epistemologies by broadening the scope of ITI studies. Giving a platform to perspectives which have been historically marginalized within ITI studies and new paths to continue challenging dominant assumptions, this book will appeal to scholars and policymakers in translation and interpreting studies.
Download or read book A Model for Pricing Equity in an Environment Characterised by Information Asymmetry A Case of an Emerging Market written by Ishola Akintoye and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Several attempts have been made to adapt or improve the capital asset pricing model (CAPM) developed by Sharpe (1964) and one of such is the 'conditional' CAPM developed by Javed (2000). The 'conditional' CAPM was developed to accommodate time variation in information available to investors but the model is unsuitable for an informational inefficient market. The Javed (2000) model was tested by Javid and Ahmad (2008) and we have modified the model to accommodate features of an informational inefficient market as prevalent in emerging markets like Nigeria.The proxies of information asymmetry (market microstructures, book to market value, and analyst forecast measures) were introduced into modified model to cater for equity pricing in the primary market where forces of demand and supply are not required in price determination. The microeconomic variables (dividend per share, earnings per share, and trading volumes) and macroeconomic variables (gross domestic product, interest, oil, inflation, consumer index, and foreigh exchange rate) were the independent variables in the modified model for equity pricing in the secondary market.
Download or read book Socioeconomic Impacts of High Speed Rail Systems written by Francesca Pagliara and published by Springer Nature. This book was released on 2023-05-01 with total page 309 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book offers new insights into the wider socioeconomic impacts of high-speed rail (HSR). Over the past few decades, significant investments have been made in these systems around the world. The use of public funds for the construction of high-speed rail offers a range of benefits, such as time savings, increased comfort, and reduced traffic congestion, as well as broader economic benefits, including the advancement of less developed regions. These proceedings feature papers presented at the 2nd International Workshop on the Socioeconomic Impacts of High-Speed Rail. The focus is on HSR’s impacts on equity and integration, the land use system, productivity, the environment, the tourism industry, and cooperation and integration with other modes of transport. The book provides an overview of the current state of practice from both theoretical and empirical perspectives. Consequently, it will be of interest to scholars of transportation economics and related fields, as well as transportation industry professionals.
Download or read book Essays on Managerial Behaviour Corporate Governance and Information Risk written by Samir Saadi and published by . This book was released on 2012 with total page 270 pages. Available in PDF, EPUB and Kindle. Book excerpt: This three-essay dissertation first examines the impact of tax enforcement on the incidence of stock option backdating. Consistent with the theoretical prediction that tax authority enforcement can operate as a valuable monitoring tool by narrowing the scope for managerial entrenchment, we find robust evidence that the incidence of stock option backdating is lower when firms are more likely to be subject to IRS audits. Our results reinforce calls in the public policy discourse for institutions that protect investors by curtailing companies' "degrees of freedom" to engage in corporate misbehaviour. The second essay examines how the market reacts to announcements of mergers and acquisitions (M & As) by well performing acquirers and evaluates the results in light of three hypotheses: 1) managerial ability, 2) empire building, and 3) chief executive officer (CEO) overconfidence. Our results indicate that an empire building motive drives the relationship between past superior operating performance and M & A announcements. Long-term operating performance drops significantly for acquiring firms with past superior operating performance. Our evidence also indicates that the presence of insider directors helps to alleviate the negative perception of acquisitions made by firms with better operating performance or empire building CEOs. The final essay investigates the controversial issue of whether information asymmetry affects the cost of equity capital. We re-examine this unanswered question using a unique and simple measure of information risk rooted in the growing literature on geographic proximity. Relying on their distance from financial centers to gauge when firms are better known, we provide robust evidence that information risk shapes equity pricing. In particular, we find that firms located in remote areas exhibit a higher cost of equity capital.
Download or read book Asymmetric Information and the Market Structure of the Banking Industry written by Mr.Giovanni Dell'Ariccia and published by International Monetary Fund. This book was released on 1998-06-01 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper analyzes the effects of informational asymmetries on the market structure of the banking industry in a multi-period model of spatial competition. All lenders face uncertainty with regard to borrowers’ creditworthiness, but, in the process of lending, incumbent banks gather proprietary information about their clients, acquiring an advantage over potential entrants. These informational asymmetries are an important determinant of the industry structure and may represent a barrier to entry for new banks. The paper shows that, in contrast with traditional models of horizontal differentiation, the steady-state equilibrium is characterized by a finite number of banks even in the absence of fixed costs.
Download or read book The Academy of Management Annals written by James P. Walsh and published by Taylor & Francis. This book was released on 2007 with total page 750 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Academy of Management is proud to announce the inaugural volume of The Academy of Management Annals. This exciting new series follows one guiding principle: The advancement of knowledge is possible only by conducting a thorough examination of what is known and unknown in a given field. Such assessments can be accomplished through comprehensive, critical reviews of the literature--crafted by informed scholars who determine when a line of inquiry has gone astray, and how to steer the research back onto the proper path. The Academy of Management Annals provide just such essential reviews. Written by leading management scholars, the reviews are invaluable for ensuring the timeliness of advanced courses, for designing new investigative approaches, and for identifying faulty methodological or conceptual assumptions. The Annals strive each year to synthesize a vast array of primary research, recognizing past principal contributions while illuminating potential future avenues of inquiry. Volume 1 of the Annals explores a wide spectrum of research: corporate control; nonstandard employment; critical management; physical work environments; public administration team learning; emotions in organizations; leadership and health care; creativity at work; business and the environment; and bias in performance appraisals. Ultimately, academic scholars in management and allied fields (e.g., sociology of organizations and organizational psychology) will see The Academy of Management Annals as a valuable resource to turn to for comprehensive, up-to-date information--published in a single volume every year by the preeminent association for management research.
Download or read book The New Institutionalism in Organizational Analysis written by Walter W. Powell and published by University of Chicago Press. This book was released on 2012-09-21 with total page 488 pages. Available in PDF, EPUB and Kindle. Book excerpt: Long a fruitful area of scrutiny for students of organizations, the study of institutions is undergoing a renaissance in contemporary social science. This volume offers, for the first time, both often-cited foundation works and the latest writings of scholars associated with the "institutional" approach to organization analysis. In their introduction, the editors discuss points of convergence and disagreement with institutionally oriented research in economics and political science, and locate the "institutional" approach in relation to major developments in contemporary sociological theory. Several chapters consolidate the theoretical advances of the past decade, identify and clarify the paradigm's key ambiguities, and push the theoretical agenda in novel ways by developing sophisticated arguments about the linkage between institutional patterns and forms of social structure. The empirical studies that follow—involving such diverse topics as mental health clinics, art museums, large corporations, civil-service systems, and national polities—illustrate the explanatory power of institutional theory in the analysis of organizational change. Required reading for anyone interested in the sociology of organizations, the volume should appeal to scholars concerned with culture, political institutions, and social change.
Download or read book Corporate Environmental Management Climate Change and Sustainable Development written by Khaldoon Albitar and published by Frontiers Media SA. This book was released on 2023-10-09 with total page 337 pages. Available in PDF, EPUB and Kindle. Book excerpt: The United Nations action plan for sustainable development, named “Transforming Our World: The 2030 Agenda for Sustainable Development” represents an international governance arrangement in response to the recent environmental challenges and social inequalities. Importantly, the Sustainable Development Goals (SDGs) framework sets a purpose to protect human rights, end poverty, reduce inequality, protect the planet and its natural resources, and enhance sustainable economic growth. Recently, due to the deterioration in global environmental conditions, increasing stakeholder demands, and stricter regulations and law all over the world, firms have realized the importance of integrating Sustainable Development Goals (SDGs) into their strategic orientations in order to enhance their environmental, social performances and keep sustainable development.
Download or read book Dissertation Abstracts International written by and published by . This book was released on 2008 with total page 734 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Corporate Payout Policy written by Harry DeAngelo and published by Now Publishers Inc. This book was released on 2009 with total page 215 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate Payout Policy synthesizes the academic research on payout policy and explains "how much, when, and how". That is (i) the overall value of payouts over the life of the enterprise, (ii) the time profile of a firm's payouts across periods, and (iii) the form of those payouts. The authors conclude that today's theory does a good job of explaining the general features of corporate payout policies, but some important gaps remain. So while our emphasis is to clarify "what we know" about payout policy, the authors also identify a number of interesting unresolved questions for future research. Corporate Payout Policy discusses potential influences on corporate payout policy including managerial use of payouts to signal future earnings to outside investors, individuals' behavioral biases that lead to sentiment-based demands for distributions, the desire of large block stockholders to maintain corporate control, and personal tax incentives to defer payouts. The authors highlight four important "carry-away" points: the literature's focus on whether repurchases will (or should) drive out dividends is misplaced because it implicitly assumes that a single payout vehicle is optimal; extant empirical evidence is strongly incompatible with the notion that the primary purpose of dividends is to signal managers' views of future earnings to outside investors; over-confidence on the part of managers is potentially a first-order determinant of payout policy because it induces them to over-retain resources to invest in dubious projects and so behavioral biases may, in fact, turn out to be more important than agency costs in explaining why investors pressure firms to accelerate payouts; the influence of controlling stockholders on payout policy --- particularly in non-U.S. firms, where controlling stockholders are common --- is a promising area for future research. Corporate Payout Policy is required reading for both researchers and practitioners interested in understanding this central topic in corporate finance and governance.
Download or read book Research Handbook on International Banking and Governance written by James R. Barth and published by Edward Elgar Publishing. This book was released on 2012-01-01 with total page 767 pages. Available in PDF, EPUB and Kindle. Book excerpt: The recent financial crisis has stimulated much debate on the governance of financial institutions, as well as research on the effects of governance arrangements on risk-taking, performance and financial institutions more generally. Furthermore, researchers are asking how regulation, legislation, politics and other factors influence the governance of financial institutions and their behavior in different dimensions. The specially commissioned contributions featured in this timely Handbook confront these complex issues. The contributors – top international scholars from finance, law and business – explore the role of governance, both internal and external, in explaining risk-taking and other aspects of the behavior of financial institutions. Additionally, they discuss market and policy features affecting objectives and quality of governance. The chapters provide in-depth analysis of factors such as: ownership, efficiency and stability; market discipline; compensation and performance; social responsibility; and governance in non-bank financial institutions. Only through this kind of rigorous examination can one hope to implement the financial reforms necessary and sufficient to reduce the likelihood and severity of future crises. Bringing the reader to the frontier of research on governance of financial institutions, this volume is sure to inspire future research in scholars and students of financial institutions, governance and banking as well as all those involved with private financial institutions and public regulatory and supervisory authorities.
Download or read book Going Public written by Tim Jenkinson and published by Oxford University Press, USA. This book was released on 2001 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt: Going Public investigates why companies routinely underprice themselves as they try to list themselves on the stock exchange. They subsequently underperform over the long-term and, in Going Public, the authors explore these 2 phenomena in plain English.
Download or read book Disrupting Finance written by Theo Lynn and published by Springer. This book was released on 2018-12-06 with total page 194 pages. Available in PDF, EPUB and Kindle. Book excerpt: This open access Pivot demonstrates how a variety of technologies act as innovation catalysts within the banking and financial services sector. Traditional banks and financial services are under increasing competition from global IT companies such as Google, Apple, Amazon and PayPal whilst facing pressure from investors to reduce costs, increase agility and improve customer retention. Technologies such as blockchain, cloud computing, mobile technologies, big data analytics and social media therefore have perhaps more potential in this industry and area of business than any other. This book defines a fintech ecosystem for the 21st century, providing a state-of-the art review of current literature, suggesting avenues for new research and offering perspectives from business, technology and industry.
