Всего статей в данном разделе : 235
Indicators of Successful Companies [статья]
Опубликовано на портале: 21-06-2006Robert Johnson, Luc Soenen European Management Journal. 2003. Vol. 21. No. 3. P. 364-369 .
Using monthly Compustat data for 478 companies covering the period 1982–1998, we investigate which factors discriminate between financially successful and less successful companies. Financial success is measured using three different methods, i.e., the Sharpe ratio, Jensen’s alpha, and EVA. We consider a total of 10 different company specific characteristics as potential indicators of superior performance. A binary logit model is applied to quantify the relationship between the individual firm characteristics and the probability that a particular measure of success will be greater or lower than the average for all firms considered. We also calculate the percentage correct prediction by the model for each measure of success. We find that especially large profitable firms with efficient working capital management and a certain degree of uniqueness regarding their business are the most successful companies.
Опубликовано на портале: 14-06-2006Maretno Harjoto, John Garen Journal of Corporate Finance. 2005. Vol. 11. No. 4. P. 661-679.
This study examines the firm's equity ownership by insiders and blockholders starting right after the firm goes public, its decline thereafter, and what alters the decline. Previous literature has shown the incentive of insiders to let their ownership fall after their initial public offering (IPO). After the IPO, management attains only a fraction of the benefits of good governance, so has an incentive to let inside ownership erode. We verify this, but examine the effect that re-entry into capital market via a seasoned equity offering (SEO) has on insider ownership. The incentive of management to hold stock is restored by a desire to raise additional capital because it implicitly raises management's stake. We show empirically that it raises insider stockholding relative to what it otherwise would have been, thus providing an avenue by which this aspect of corporate governance is improved. This, and other results, is shown with a sample of IPO firms during 1996 and 1997. Our findings indicate that, in expectation, the increased holdings due to re-entry into the capital market almost exactly offsets 1 year's downward trend in management shareholdings. Also, we find an interesting interplay between types of blockholders in that CEOs tend to hold less stock after the IPO if external blockholders initially hold more.
Опубликовано на портале: 14-06-2006Raihan Khan, Ravi Dharwadkar, Pamela Brandes Journal of Business Research. 2005. Vol. 58. No. 8. P. 1078-1088.
Limited research has looked at how the aspects of institutional ownership affect executive compensation. Using an agency theory approach, we investigate how institutional ownership concentration and dispersion affect levels of CEO compensation, pay mix, and stock option pay sensitivity. We find that the largest owner's concentration is associated with lower levels of compensation, as well as with higher ratios of salary to total compensation and lower ratios of options to total compensation, but that the number of blockholders does not predict any aspects of CEO compensation. In addition, institutional ownership dispersion is associated with increased levels of compensation and greater use of incentive compensation. Finally, higher levels of CEO ownership lead to a significant reduction in the level of options compensation, as well as higher ratios of salary to total compensation and lower ratios of options to total compensation.
Intellectual Capital and Corporate Value in an Emerging Economy: Empirical Study of Taiwanese Manufacturers. [статья]
Опубликовано на портале: 14-06-2006Chun-Yao Tseng, Yeong-Jia James Goo R & D Management. 2005. Vol. 35. No. 2. P. 187-201.
Competitive success now is based less on the strategic allocation of physical and financial resources, and more on the strategic management of intellectual capital. Although intellectual capital is intangible and cannot be accurately measured, companies must develop methods of increasing corporate value by proactively focusing on intellectual capital management. This study examines the relationship between intellectual capital and corporate value in an emerging economy. This study employs an intellectual capital perspective, resource-based view and a financial perspective, and investigates how to apply the concept of intellectual capital to value creation. After reviewing the relevant literature, this study identifies human capital, organizational capital, innovation capital and relationship capital as four constructs of intellectual capital. Corporate value is measured using three selection methods: (1) Market/Book value, (2) Tobin'Qand (3) Value Added Intellectual Coefficient (VAIC™). Through a questionnaire survey and secondary data collection, this study applies the Structure Equation Model to analyze the relationships among four constructs of intellectual capital, as well as the relationship between intellectual capital and corporate value. From the empirical findings, for Taiwanese manufacturers, a positive relationship exists between intellectual capital and corporate value. This study visualizes and mobilizes intellectual capital to articulate eight value creation paths.
Опубликовано на портале: 14-06-2006Norma Juma, G. Tyge Payne International Journal of Innovation Management. 2004. Vol. 8. No. 3. P. 297-318.
Intellectual capital (IC) has been proposed as an essential factor for organizational survival and maintenance of competitive strength. However, there has been very limited consensus on what encompasses IC and how it can best be conceptualized and measured. Further, very little empirical work has specifically examined the relationship between IC and financial performance. Given these shortcomings, this paper focuses first on the impact IC has on performance and secondly on the role strategic alliances may have on this relationship. While we argue that IC will impact performance, we anticipate this relationship will be moderated by strategic alliances and other inter-firm collaborations. Findings reveal interesting relationships that suggest further effort should be placed on the conceptualization and measurement of IC, specifically regarding its relationship to firm performance.
Internal Capital Markets, Bank Borrowing, and Financing Constraints: Evidence from Belgian Firms [статья]
Опубликовано на портале: 14-06-2006Marc Deloof Journal of Business Finance & Accounting. 1998. Vol. 25. No. 7/8. P. 945-968.
Presents information on the interpretation regarding the Belgian firms belonging to a corporate group, where investment is incompletely financed on an internal capital market of the group. How many firms are indirectly controlled; Important role the holding companies and corporate groups play in the financing of Belgian firms; Reference to the tracing of origins of these networks.
Опубликовано на портале: 14-06-2006Julia Porter Liebeskind Organization Science. 2000. Vol. 11. No. 1. P. 58-77.
Diversification not only internalizes transactions of goods and services, but it also internalizes transactions of capital. Hence, the value of diversification will depend, inter alia, on whether internal capital markets are relatively efficient or inefficient. This essay reviews and discusses the possible benefits and costs of internal capital markets by conducting a careful comparative institutional analysis. The essay concludes that internal capital markets can add value to lines of business only under a limited number of circumstances. Some recent developments in the organization of internal capital markets in diversified firms can be understood as attempts to increase their efficiency.
Internal Capital Markets in Financial Conglomerates: Evidence from Small Bank Responses to Monetary Policy [статья]
Опубликовано на портале: 05-06-2006Murillo Campello Journal of Finance. 2002. Vol. 57. No. 6. P. 2773-2805.
This paper looks at internal capital markets in financial conglomerates by comparing the responses of small subsidiary and independent banks to monetary policy. I find that internal capital markets in financial conglomerates relax the credit constraints faced by smaller bank affiliates. Further analysis indicates that those markets lessen the impact of Fed policies on bank lending activity. The paper also examines the role of internal capital markets in influencing the investment allocation process of those conglomerates. My findings suggest that frictions between conglomerate headquarters and external capital markets are at the root of investment inefficiencies generated by internal capital markets.
Опубликовано на портале: 14-06-2006Hans Degryse, Abe de Jong International Journal of Industrial Organization. 2006. Vol. 24. No. 1. P. 125-147.
This paper analyzes the interaction between legal shareholder protection, managerial incentives, monitoring, and ownership concentration. Legal protection affects the expropriation of shareholders and the blockholder's incentives to monitor. Because monitoring weakens managerial incentives, both effects jointly determine the relationship between legal protection and ownership concentration. When legal protection facilitates monitoring better laws strengthen the monitoring incentives, and ownership concentration and legal protection are inversely related. By contrast, when legal protection and monitoring are substitutes better laws weaken the monitoring incentives, and the relationship between legal protection and ownership concentration is non-monotone. This holds irrespective of whether or not the large shareholder can reap private benefits. Moreover, better legal protection may exacerbate rather than alleviate the conflict of interest between large and small shareholders.
Опубликовано на портале: 16-06-2006François Derrien Journal of Business Finance & Accounting. 2005. Vol. 32. No. 1/2. P. 325-350.
This paper explores the impact of investor sentiment on IPO pricing. Using a model in which the aftermarket price of IPO shares depends on the information about the intrinsic value of the company and investor sentiment, I show that IPOs can be overpriced and still exhibit positive initial return. A sample of recent French offerings with a fraction of the shares reserved for individual investors supports the predictions of the model. Individual investors' demand is positively related to market conditions. Moreover, large individual investors' demand leads to high IPO prices, large initial returns, and poor long-run performance.
Long-run Stock Price Performance after IPOs: What Do Tests for Stochastic Dominance Tell Us [статья]
Опубликовано на портале: 14-06-2006K. Ho Applied Economics Letters. 2003. Vol. 10. No. 1. P. 15-20.
Traditional studies of long-run stock price abnormal performance after corporate events compare the mean returns of an event firm portfolio and a benchmark firm portfolio or index. However, it is well known that long-run abnormal returns are non-normal leading to problems with statistical inference on abnormal performance. Instead in this paper, the entire return distributions of event firms and the benchmark index using non-parametric tests of stochastic dominance are compared. Tests are applied for first and second order stochastic dominance to Ritter's (1991) IPO data. It is found, contrary to results that compare only mean returns, that IPO firms do not underperform a benchmark index. The results are robust to extreme values of buy-and-hold return of IPO firms and underline the fact that long-run abnormal performance measurement is sensitive to the methodology used.
Опубликовано на портале: 05-06-2006Adolfo De Motta Journal of Finance. 2003. Vol. 58. No. 3. P. 1193-1220.
Capital budgeting in multidivisional firms depends on the external assessment of the whole firm, as well as on headquarters' assessment of the divisions. While corporate headquarters may create value by directly monitoring divisions, the external assessment of the firm is a public good for division managers who, consequently, are tempted to free ride. As the number of divisions increases, the free-rider problem is aggravated, and internal capital markets substitute for external capital markets in the provision of managerial incentives. The analysis relates the value of diversification to characteristics of the firm, the industry, and the capital market.
Managing Costs and Cost Structure throughout the Value Chain: Research on Strategic Cost Management [статья]
Опубликовано на портале: 21-06-2006Shannon W. Anderson SSRN Working Papers. 2005.
Strategic cost management is deliberate decision-making aimed at aligning the firm's cost structure with its strategy and optimizing the enactment of the strategy. Alignment and optimization must comprehend the full value chain and all stakeholders to ensure long run sustainable profits for the firm. Strategic cost management takes two forms: structural cost management, which employs tools of organizational design, product design and process design to build a cost structure that is coherent with strategy; and executional cost management, which employs various measurement and analysis tools (e.g., variance analysis, analysis of cost drivers) to evaluate cost performance. In this chapter I develop a model that relates strategic cost management to strategy development and performance evaluation. I argue that although management accounting research has advanced our understanding of executional cost management, other management fields have done more to advance our understanding of structural cost management. I review research in a variety of management fields to illustrate this point. I conclude by proposing that management accounting researchers are uniquely qualified to create a body of strategic cost management knowledge that unifies structural and executional cost management.
Modeling the Relationship between Corporate Strategy and Wealth Creation Using Neural Networks [статья]
Опубликовано на портале: 21-06-2006Caron H. St. John, Nagraj Balakrishnan, James O. Fiet Computers & Operations Research. 2000. Vol. 27. No. 11-12.
In this paper, we hypothesize that there is a non-linear relationship between corporate strategy, short-run financial variables, and wealth creation measured as market value added (MVA), and use neural networking to model this relationship. The neural network model accurately categorized over 90% in the training set and nearly 93% of firms in the holdout test sample. Additional analysis revealed that strategy variables were particularly effective predictors of an upward trend in wealth creation whereas short-run financial variables were more effective in predicting a downward trend, or wealth destruction. Neural networks outperformed discriminant analysis in predictive ability in all analyses, suggesting the presence of non-linear effects. This research represents a first attempt to use neural networking to model the relationship between corporate strategy and wealth creation.
Опубликовано на портале: 14-06-2006Benjamin Maury, Anete Pajuste Journal of Banking & Finance. 2005. Vol. 29. No. 7. P. 1813-1834.
This paper investigates the effects of having multiple large shareholders on the valuation of firms. Using data on Finnish listed firms, we show, consistent with our model, that a more equal distribution of votes among large blockholders has a positive effect on firm value. This result is particularly strong in family-controlled firms suggesting that families (which typically have managerial or board representation) are more prone to private benefit extraction if they are not monitored by another strong blockholder. We also show that the relation between multiple blockholders and firm value is significantly affected by the identity of these blockholders.