Download or read book Managerial Share Ownership Firm Performance and Dividends written by and published by . This book was released on 2009 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis examines the relationship between managerial share ownership and firm performance as well as the relationship between managerial share ownership and dividends in Australia. Agency theory, more specifically two alternative theories - incentive alignment and managerial entrenchment theory - provides the theoretical framework that underpins this thesis. The three empirical studies in this thesis examine the top 300 Australian listed companies for the period 2000 to 2006 and the methodology is based on multivariate regression analysis. Most importantly, all of the studies consider the potential endogeneity of managerial share ownership as well as the simultaneity between managerial share ownership and performance, and managerial share ownership and dividends. There are several primary motivations for this thesis. First, it is argued that characteristics of the Australian legal system, ownership characteristics, market for corporate control, and other corporate governance features, mean that the Australian corporate governance system is markedly different from that of the US and the UK; these differences have the potential to impact the ownership-performance and ownership-dividends relationships examined. Second, much of the prior literature examines the relationship between managerial share ownership and performance using share ownership by all the directors, and does not distinguish between share ownership by the executive directors and by the non-executive directors, in particular, the independent directors. It is posited that executive directors and independent directors have different ownership-performance and ownership-dividends incentives and these are examined separately. Third, the Australian dividend imputation system has interesting implications for the ownership-dividends relationship this thesis examines. The first empirical study in this thesis investigates the relationship between managerial share ownership and performance measured by Tobin's Q.

Download or read book Managerial Share Ownership Firm Performance and Dividends written by Arifur Khan and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis examines the relationship between managerial share ownership and firm performance as well as the relationship between managerial share ownership and dividends in Australia. Agency theory, more specifically two alternative theories - incentive alignment and managerial entrenchment theory - provides the theoretical framework that underpins this thesis. The three empirical studies in this thesis examine the top 300 Australian listed companies for the period 2000 to 2006 and the methodology is based on multivariate regression analysis. Most importantly, all of the studies consider the potential endogeneity of managerial share ownership as well as the simultaneity between managerial share ownership and performance, and managerial share ownership and dividends. There are several primary motivations for this thesis. First, it is argued that characteristics of the Australian legal system, ownership characteristics, market for corporate control, and other corporate governance features, mean that the Australian corporate governance system is markedly different from that of the US and the UK; these differences have the potential to impact the ownership-performance and ownership-dividends relationships examined. Second, much of the prior literature examines the relationship between managerial share ownership and performance using share ownership by all the directors, and does not distinguish between share ownership by the executive directors and by the non-executive directors, in particular, the independent directors. It is posited that executive directors and independent directors have different ownership-performance and ownership-dividends incentives and these are examined separately. Third, the Australian dividend imputation system has interesting implications for the ownership-dividends relationship this thesis examines. The first empirical study in this thesis investigates the relationship between managerial share ownership and performance measured by Tobin's Q and earnings. This study finds a negative relationship followed by a positive relationship (U-shaped) between managerial share ownership and performance. It is also documented that the relationship is bidirectional, that is, performance also affects managerial ownership but only when it uses Tobin's Q to measure performance. The study also documents a similar relationship for the executive directors' share ownership as for managerial share ownership as a whole. As posited, it does not find any relationship between share ownership by the independent directors and performance. The second empirical study examines the relationship between managerial share ownership and discretionary accruals, as well as accrual adjusted earnings. The study finds a positive relationship followed by a negative relationship (inverse U-shaped) between managerial share ownership and the absolute value of discretionary accruals. It also finds that this relationship is driven by executive as opposed to independent directors' share ownership. It then re-examines the relationship between managerial share ownership and performance measured by earnings adjusted for accruals. Once again a U-shaped relationship is documented between managerial share ownership and adjusted earnings. It is also documented that the relationship is bidirectional. The analysis for the executive directors reveals a similar relationship to that of managerial share ownership as a whole. Once again, no relationship is found between ownership by the independent directors and adjusted earnings. The third and final empirical study investigates the relationship between managerial share ownership and the likelihood of paying dividends as well as dividend payouts. It is found in this study that firms are more likely to pay dividends when managerial share ownership, as well as ownership by the executive directors, is high. Related to this is a positive relationship documented between managerial share ownership and dividend payouts as well as executive directors' share ownership and dividend payouts. However, this study fails to find any significant relationship between ownership by the independent directors and dividends. Since the direction of causality may also be an issue, this study also investigates the simultaneous determination of managerial ownership and dividend payouts. It fails to find any simultaneous relationship between ownership by managers and dividend payouts. The thesis as a whole presents some unique and robust results relating to the ownership-performance and ownership-dividends relationships, which are argued to be a result of certain Australian institutional features that are clearly different to those in the US and the UK. The results also support the argument that executive directors and independent directors have different ownership-performance and ownership-dividends incentives, and suggest that independent directors may be immune to the theorised incentive alignment or entrenchment effects associated with share ownership.

Download or read book Share Ownership and Corporate Performance written by Jayesh Kumar and published by Independently Published. This book was released on 2021-03-07 with total page 116 pages. Available in PDF, EPUB and Kindle. Book excerpt: This MPhil thesis examines whether the corporate governance framework (ownership structure) influence the firm performance and dividends payout policy. We consider the effect of interactions between corporate, foreign, institutional, and managerial ownership on the firm performance and profits payout policy for an unbalanced panel of 2478 Indian corporate firms over 1994 to 2000.We find that after controlling for observed firm characteristics and unobserved firm heterogeneity, using a fixed-effects panel data framework, the shareholding by institutional investors and directors affects firm performance. We also find that the equity ownership by dominant group influences firm-performance only in case of managerial ownership. We find no evidence in favor of the endogeneity of ownership structure. Unobserved firm heterogeneity is found to be significant. We also find that the ownership by foreign and corporates does not influence firm performance.In analyzing the dividends payout behavior, we suggest an empirical model explain the dividend payout behavior, with the help of a firm's financial structure and investment opportunities along with dividends, earnings, and ownership structure. Using a fixed-effects panel data approach, we find evidence of dividends' dependence on past dividends. Ownership by the corporate and directors is positively related to profits payout in level, and corporate ownership is negatively related in its square. Institutional ownership has an inverse effect on dividends in comparison to corporate ownership in standards as well as in its squares.We find no evidence in favor of an association between foreign ownership and dividend payout growth. We also find support for the hypothesis of a positive association between dividends and past earnings. Debt equity is found to be negatively associated, whereas recent investment opportunities are positively associated with dividends payout. We do not find evidence of the tax or group affiliation effect on payout policy.

Download or read book Ownership Structure Board and Manager Discretion on Performance written by Vincent Ongore and published by LAP Lambert Academic Publishing. This book was released on 2011-02 with total page 196 pages. Available in PDF, EPUB and Kindle. Book excerpt: The study investigated the combined effects of ownership structure, board effectiveness and managerial discretion on firm performance using agency theory as an analytical framework. Measures of performance used in the study were Return on Assets, Return on Equity and Dividend Yield. Using Pearson s Product Moment Correlation and Logistic Regression, Step-wise regression and ANOVA to analyze data obtained from companies listed at the Nairobi Stock Exchange, the study found out that Ownership Concentration and Government Ownership have significant negative relationships with firm performance. On the other hand, Foreign Ownership, Diffuse Ownership, Corporation Ownership, and Manager Ownership were found to have significant positive relationships with firm performance. The results of this study have indicted the Board of Directors for not playing any meaningful role in corporate governance in Kenya. On the other hand, the results support the need for managers to bear more responsibility of their mismanagement and also share in the residual income of the firms they manage.

Download or read book Corporate Governance Strengthening Latin American Corporate Governance The Role of Institutional Investors written by OECD and published by OECD Publishing. This book was released on 2011-07-01 with total page 78 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report reflects long-term, in-depth discussion and debate by participants in the Latin American Roundtable on Corporate Governance.

Download or read book Asymmetric Information Corporate Finance and Investment written by R. Glenn Hubbard and published by University of Chicago Press. This book was released on 2009-05-15 with total page 354 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this volume, specialists from traditionally separate areas in economics and finance investigate issues at the conjunction of their fields. They argue that financial decisions of the firm can affect real economic activity—and this is true for enough firms and consumers to have significant aggregate economic effects. They demonstrate that important differences—asymmetries—in access to information between "borrowers" and "lenders" ("insiders" and "outsiders") in financial transactions affect investment decisions of firms and the organization of financial markets. The original research emphasizes the role of information problems in explaining empirically important links between internal finance and investment, as well as their role in accounting for observed variations in mechanisms for corporate control.

Download or read book Dividend Policy and Corporate Governance written by Luis Correia da Silva and published by OUP Oxford. This book was released on 2004-02-26 with total page 204 pages. Available in PDF, EPUB and Kindle. Book excerpt: Dividends are not only a signal about a firm's prospects under asymmetric information, but they can also act as a corporate governance device to align the management's interests with those of the shareholders. Dividend Policy and Corporate Governance is the first comprehensive volume on the relationship between dividend policy and corporate governance, and examines in detail empirical studies and current theories. Reviewing the interactions between dividend policy and other corporate governance mechanisms, it compares results for the UK and the US with those for other countries such as France, Germany, and Japan, and provides new empirical evidence on corporate governance in continental Europe and its impact on dividends. Focusing on one of the main representatives of this system, Germany, it highlights major differences between the dividend policies of German firms and those of UK or US firms. Conventional wisdom states that German dividends are lower than UK or US dividends, yet on a published-profits basis the exact converse is true. In addition, the authors demonstrate a link between corporate control structures and dividend payouts, report evidence that the existence of a loss is an additional determinant of dividend changes, and demonstrate that the tax status of the controlling shareholder and the firm's dividend payout are not linked. The conclusions reached in this book have important implications for the current debate on corporate governance, making it invaluable for academics, finance professionals, regulators, and legal advisors.

Download or read book Investment Dividends Firm Performance and Managerial Incentives written by Mahmoud Agha and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We combine the incentive schemes offered to managers in practice into a single incentive package and construct a governance index to analyze the role of governance and the incentive package in addressing the agency costs of free cash flow. Using US based data, we find empirical evidence that managers in practice do not consume perks but make a tradeoff when they allocate the cash flows of the firm between investment and dividends. In general, managers in practice underinvest and overpay dividends; an increase in their incentive package would retract both investment and dividends toward the optimal levels; hence, firm performance would improve. We also find that governance is used as a control mechanism rather than as a substitute for the incentive package. Principals employ governance to slow down investment and increase dividends when there is a high informational asymmetry between the manager and the investors, and set these variables close to the optimal levels otherwise. Moreover, we find that firms in practice do not use dividends as a substitute for governance. Furthermore, we find monotone relations between investment, firm performance and dividends on the one hand, and governance and the incentive package on the other hand.

Download or read book The External Control of Organizations written by Jeffrey Pfeffer and published by Stanford University Press. This book was released on 2003 with total page 336 pages. Available in PDF, EPUB and Kindle. Book excerpt: This work explores how external constraints affect organizations and provides insights for designing and managing organizations to mitigate these constraints. All organizations are dependent on the environment for their survival. It contends that it is the fact of the organization's dependence on the environment that makes the external constraint and control of organizational behaviour both possible and almost inevitable. Organizations can either try to change their environments through political means or form interorganizational relationships to control or absorb uncertainty.

Download or read book Advances in Financial Economics written by Kose John and published by Emerald Group Publishing. This book was released on 2013-12-18 with total page 269 pages. Available in PDF, EPUB and Kindle. Book excerpt: Advances in Financial Economics Vol. 16 contains a set of empirical papers by a set of global scholars who examine corporate governance and market regulation from a variety of perspectives.

Download or read book Corporate Governance and Firm Performance written by Mark Hirschey and published by Emerald Group Publishing. This book was released on 2009-04-16 with total page 268 pages. Available in PDF, EPUB and Kindle. Book excerpt: Focuses on corporate governance, broadly defined as the system of controls that helps corporations and other organizations effectively manage, administer, and direct economic resources. This book focuses on: the impact of deregulation and corporate structure on productive efficiency; and the effectiveness of the fraud triangle and SAS.

Download or read book The Impact of Financing Decision Dividend Policy and Corporate Ownership on Firm Performance at Presence or Absence of Growth Opportunity written by Huson Joher Aliahmed and published by . This book was released on 2008 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt: [Enter Abstract Body]The aim of this paper is to analyze the impact of a company's level of financing policy, dividend policy and corporate structure on firm performance measured by Tobin Q of Malaysian-listed at the presence or absence of growth opportunities. The study uses panel based regression approach to address whether or not policy variable such as dividend, leverage and corporate structure play differently in explaining the market based firm performance once firm faces growth opportunities or absence of growth opportunities. The analysis is based on a sample of 100 Composite Index components Companies on Kuala Lumpur stock exchange over a period of 4 years, from 1999 to 2002. Findings suggest that firm debt policy affect firm performance differently once firm face presence or absence of growth opportunities. The relationships are unique for each scenario. Once the firm faces no growth opportunities, increase in corporate debt has adverse effect on firm performance. In contrast, firms, which face growth opportunities, resorting external funding provide a multiplier effect on firm performance. While corporate dividend policy seems to be indifferent for the firms which face growth or no growth opportunities, but provide a greater explanation for the potential impact on firm performance implying that dividend policy remain most stable in Malaysian capital market which is valued by corporate investors. Corporate structure proxied by managerial ownership may not provide any meaningful explanation for firm performance over the analysis period. However, firms based both on domestic and multinational ownership provides strong explanation for firm performance once firms face no growth opportunity. Hence this study provide a new lights on issue of corporate structure on firms performance.

Download or read book The confluence of ownership and control written by Craig P. Dunn and published by . This book was released on 1994 with total page 171 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Encyclopedia of Finance written by Cheng-Few Lee and published by Springer Science & Business Media. This book was released on 2006-07-27 with total page 861 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is a major new reference work covering all aspects of finance. Coverage includes finance (financial management, security analysis, portfolio management, financial markets and instruments, insurance, real estate, options and futures, international finance) and statistical applications in finance (applications in portfolio analysis, option pricing models and financial research). The project is designed to attract both an academic and professional market. It also has an international approach to ensure its maximum appeal. The Editors' wish is that the readers will find the encyclopedia to be an invaluable resource.

Download or read book Dividends and Dividend Policy written by H. Kent Baker and published by John Wiley & Sons. This book was released on 2009-05-04 with total page 552 pages. Available in PDF, EPUB and Kindle. Book excerpt: Dividends And Dividend Policy As part of the Robert W. Kolb Series in Finance, Dividends and Dividend Policy aims to be the essential guide to dividends and their impact on shareholder value. Issues concerning dividends and dividend policy have always posed challenges to both academics and professionals. While all the pieces to the dividend puzzle may not be in place yet, the information found here can help you gain a firm understanding of this dynamic discipline. Comprising twenty-eight chapters—contributed by both top academics and financial experts in the field—this well-rounded resource discusses everything from corporate dividend decisions to the role behavioral finance plays in dividend policy. Along the way, you'll gain valuable insights into the history, trends, and determinants of dividends and dividend policy, and discover the different approaches firms are taking when it comes to dividends. Whether you're a seasoned financial professional or just beginning your journey in the world of finance, having a firm understanding of the issues surrounding dividends and dividend policy is now more important than ever. With this book as your guide, you'll be prepared to make the most informed dividend-related decisions possible—even in the most challenging economic conditions. The Robert W. Kolb Series in Finance is an unparalleled source of information dedicated to the most important issues in modern finance. Each book focuses on a specific topic in the field of finance and contains contributed chapters from both respected academics and experienced financial professionals.

Download or read book Corporate Structure Performance written by Michael L. Lawriwsky and published by London : Croom Helm ; New York : St. Martin's Press. This book was released on 1984 with total page 286 pages. Available in PDF, EPUB and Kindle. Book excerpt: This stimulating and impressively argued book examines the many issues connected with corporate structure and performance.It reviews the existing literature on the subject and discusses the results of a massive research project carried out over a ten year period using data from 226 corporations. The issues are discussed in relation to corporations in Australia, Britain, Western Europe and the United States.

Download or read book Ethics Governance and Corporate Crime written by Roshima Said and published by Emerald Group Publishing. This book was released on 2014-06-18 with total page 284 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is comprised of academic work on key current issues pertaining to the areas of ethics, governance and corporate crimes. The book provides a platform for researchers to publish their work, articulate their concerns and offer critical perspectives on what they see happening around them.