Download or read book Transparency Liquidity and Valuation written by Mark H. Lang and published by . This book was released on 2016 with total page 69 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the relation between firm-level transparency, stock market liquidity, and valuation across a variety of international settings. We document lower transaction costs and greater liquidity (as measured by lower bid-ask spreads and fewer zero-return days) for firms with greater transparency (as measured by less evidence of earnings management, better accounting standards, higher quality auditors, more analyst following and more accurate analyst forecasts). The relation between transparency and liquidity is more pronounced in periods of high volatility, when investor protection, disclosure requirements, and media penetration are poor, and when ownership is more concentrated, suggesting that firm-level transparency matters more when overall investor uncertainty is greater. Increased liquidity is associated with lower implied cost of capital and with higher valuation as measured by Tobin's Q. Finally, a mediation analysis suggests that liquidity is a significant channel through which transparency affects firm valuation and equity cost of capital.
Download or read book Economic Effects of Transparency in International Equity Markets written by Mark Lang and published by Now Publishers Inc. This book was released on 2011 with total page 79 pages. Available in PDF, EPUB and Kindle. Book excerpt: This monograph reviews the existing accounting, finance and economics literature on the economic effects of transparency in international equity markets, considers aspects of an international setting that make it an interesting environment for investigating these effects, and suggests directions for future research
Download or read book Securitization Transparency and Liquidity written by Marco Pagano and published by . This book was released on 2010 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: We present a model in which issuers of asset backed securities choose to release coarse information to enhance the liquidity of their primary market, at the cost of reducing secondary market liquidity or even causing it to freeze. The degree of transparency is inefficiently low if the social value of secondary market liquidity exceeds its private value. We analyze various types of public intervention - mandatory transparency standards, provision of liquidity to distressed banks or secondary market price support - and find that they have different welfare implications. Finally, we extend the model by endogenizing the private and social value of liquidity, the probability of liquidity trading, and the proportion of sophisticated investors.
Download or read book The Value of Firms Voluntary Commitment to Improve Transparency written by Abby Kim and published by . This book was released on 2014 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines whether firms' commitment to increase transparency affects liquidity by studying firms' voluntary decision to be listed in “special segments” created by Euronext. My results show that transparency affects firm's stock market liquidity, strengthening their positive relationships consistent with the existing literature. In contrast, when similar market regulation is imposed on all listed firms I find negative effects on liquidity for all firms listed on the exchange. A market-wide requirement to increase transparency has effects that differ from those of voluntary commitments to similarly increase transparency.
Download or read book Transparency and Liquidity Uncertainty in Crisis Periods written by Mark H. Lang and published by . This book was released on 2016 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: We document, for a global sample, that firms with greater transparency (based on accounting standards, auditor choice, earnings management, analyst following and forecast accuracy) experience less liquidity volatility, fewer extreme illiquidity events and lower correlations between firm-level liquidity and both market liquidity and market returns. Results are robust to numerous sensitivity analyses, including controls for endogeneity and propensity matching. Results are particularly pronounced during crises, when liquidity variances, covariances and extreme illiquidity events increase substantially, but less so for transparent firms. Finally, liquidity variance, covariance and the frequency of extreme illiquidity events are all negatively correlated with Tobin's Q.
Download or read book Transparency in Information and Governance written by J. Jay Choi and published by Emerald Group Publishing. This book was released on 2012-10-17 with total page 388 pages. Available in PDF, EPUB and Kindle. Book excerpt: For this volume we have collected 12 original research papers dealing with various issues relating to transparency. This topic spans many disciplines beyond accounting and finance, intersecting economics, law and management, embracing sociology and political science, and offering opportunities for creative interdisciplinary research. We hope this v
Download or read book Economic Effects of Transparency in International Equity Markets written by Mark Harold Lang and published by . This book was released on 2011 with total page 69 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic Effects of Transparency in International Equity Markets reviews the existing accounting, finance and economics literatures on the economic effects of transparency in international equity markets, considers aspects of an international setting that make it an interesting environment for investigating these effects, and suggests directions for future research. The authors focus on the availability of firm-specific financial information to equity stakeholders and the effects of the quantity and quality of that information on own-firm equity value. Drawing from the FASB/IASB conceptual framework, this monograph defines high quality financial information as information that both faithfully represents the substance of an underlying phenomenon and can be understood by users of that information. Economic Effects of Transparency in International Equity Markets focuses on an international context to investigate the effects of transparency because overall levels of transparency tend to be low, there is substantial cross-country institutional and regulatory variation and managers and regulators in these environments face significant tradeoffs in determining optimal transparency levels. Although this variation can sometimes complicate the researcher's effort to make inferences across different institutional environments, the authors highlight how these differences can be exploited to identify potential disclosure and informational effects that may be too subtle to detect in more homogenous, single-country, settings and to understand the interactions between transparency and other aspects of the firm's economic environment.
Download or read book Creating Value From Mergers And Acquisitions written by Sudarsanam and published by Pearson Education India. This book was released on 2003-09 with total page 622 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Transparency in Government Operations written by Mr.J. D. Craig and published by International Monetary Fund. This book was released on 1998-02-03 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: Transparency in government operations is widely regarded as an important precondition for macroeconomic fiscal sustainability, good governance, and overall fiscal rectitude. Notably, the Interim Committee, at its April and September 1996 meetings, stressed the need for greater fiscal transparency. Prompted by these concerns, this paper represents a first attempt to address many of the aspects of transparency in government operations. It provides an overview of major issues in fiscal transparency and examines the IMF's role in promoting transparency in government operations.
Download or read book SEC Docket written by United States. Securities and Exchange Commission and published by . This book was released on 2003 with total page 1054 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on Transparency Systemic Risk and Liquidity in Real Estate Markets written by Daniel Ruf and published by . This book was released on 2018 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of three essays on transparency, systemic risk, and liquidity in real estate markets. The first essay proposes a benchmark portfolio that contains property markets with a higher level of pre-trade transparency to assess expected returns in opaque commercial real estate markets. We find empirical evidence of abnormal returns in opaque markets relative to the benchmark portfolio. Based on pre-trade transparency, we test for information-based co-movements between transparent and less transparent property markets. Revealed post-trade information of how changes in macroeconomic fundamentals affect the valuation of commercial real estate in transparent markets leads to spillover effects to less transparent markets. We also test for learning externalities from the benchmark portfolio to opaque markets. These externalities can be related to different learning-based investment strategies such as cultural familiarity or information advantages from specializing in opaque markets. The second essay analyzes systemic risk in financial center office markets. Based on the expected capital shortfall of financial institutions, we compute the total systemic risk in the banking sector of financial centers. We show that cross-sectional dependence and return co-movements among financial center office markets arise due to the systemic banking sector risk during financial turmoil periods. As crisis periods, we use the dotcom bubble burst in 2001 and the recent financial crisis 2007/2008. Exploiting spatial econometrics, we test for return co-movements among office markets during normal times as a placebo test and among counterfactual retail markets. We also show that the decline in office market returns during financial turmoil is larger in financial centers compared to non-financial centers. The last essay analyzes the impact of nearby located urban agglomeration centers on local rental housing market liquidity. The empirical.
Download or read book Transparency in Central Bank Financial Statement Disclosures written by Kenneth Sullivan and published by . This book was released on 2000 with total page 138 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Corporate Transparency and Bond Liquidity written by Falko Fecht and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Security Prices and Market Transparency written by Ananth Madhavan and published by . This book was released on 1999 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Many recommendations for reforming securities market are predicated on the belief that providing information on order flow and other market variables to traders (i.e., increasing market transparency) will increase liquidity and improve price efficiency. This paper demonstrates that market transparency can actually increase price volatility and lower market liquidity. This occurs even though transparency increases the precision of traders' predictions about the asset's value. In a sufficiently large market, transparency always reduces volatility and improves market quality. We use these results to assess policy proposals concerning the disclosure of trading information.
Download or read book Damodaran on Valuation written by Aswath Damodaran and published by John Wiley & Sons. This book was released on 2016-02-08 with total page 698 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Aswath Damodaran is simply the best valuation teacher around. If you are interested in the theory or practice of valuation, you should have Damodaran on Valuation on your bookshelf. You can bet that I do." -- Michael J. Mauboussin, Chief Investment Strategist, Legg Mason Capital Management and author of More Than You Know: Finding Financial Wisdom in Unconventional Places In order to be a successful CEO, corporate strategist, or analyst, understanding the valuation process is a necessity. The second edition of Damodaran on Valuation stands out as the most reliable book for answering many of today?s critical valuation questions. Completely revised and updated, this edition is the ideal book on valuation for CEOs and corporate strategists. You'll gain an understanding of the vitality of today?s valuation models and develop the acumen needed for the most complex and subtle valuation scenarios you will face.
Download or read book Asset Liquidity and Stock Liquidity written by Charlie Charoenwong and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the relation between asset liquidity and stock liquidity across 47 countries. In support of the valuation uncertainty hypothesis, we find that firms with greater asset liquidity on average have higher stock liquidity. More importantly, our study shows that asset liquidity plays a more significant role in resolving valuation uncertainty in countries with poor information environment. For example, we find that the asset-stock liquidity relation is stronger in countries with poor accounting standards. We further find some evidence that after the adoption of IFRS, the improved accounting information environment results in a weaker asset-stock liquidity relation, but only in countries with a strong legal regime. Finally, our study shows that the positive asset-stock liquidity relation may be attributed to transparency and/or liquidity reasons.
Download or read book Corporate and Institutional Transparency for Economic Growth in Europe written by Lars Oxelheim and published by Emerald Group Publishing. This book was released on 2006-07-01 with total page 468 pages. Available in PDF, EPUB and Kindle. Book excerpt: What is transparency? What does it do? How much of it do we need, and for what purpose? This book includes chapters that address transparency in different markets and at different levels: from corporate financial disclosure to lobbying; from the risk incentives facing banks to competition and environmental policies.
