114 research outputs found
Firms cash management, adjustment cost and its impact on firms’ speed of adjustment-A cross country analysis
We investigate the firms’ specific attributes that determine the difference in speed of adjustment
(SOA) towards the cash holdings target in the Scandinavian countries: Denmark,
Norway and Sweden. We examine whether Scandinavian firms maintain an optimal level
of cash holdings and determine if the active cash holdings management is associated with
the firms’ higher SOA and lower adjustment costs. Our findings substantiate that a higher
level of off-target cost induces professional managers to rebalance their cash level towards
the optimal balance of cash holdings. Our results reveal that Scandinavian firms accelerate
SOA towards cash targets primarily for the precautionary motive. Moreover, our results
show that SOA is heterogeneous across Scandinavian firms based on adjustment cost and
deviate cash holdings towards the target mainly with the support of internal financing. Furthermore,
our empirical findings show that the SOA of Norwegian firms is significantly
higher than the Danish and Swedish firms
Frequencies of board meetings on various topics and corporate governance: evidence from China
This paper examines the relationship between number of topic-specific board meetings and quality of corporate governance. The quality of corporate governance is estimated by CEO turnover-performance and compensation-performance sensitivities. Information about topic-specific meetings is collected from the reports of independent directors of Chinese listed firms. We find that more frequent discussions of growth strategies related to the use of IPO proceeds, investment and acquisitions increase CEO compensation-performance sensitivity. By contrast, more discussions about the nomination of directors and top management are likely to reduce the sensitivities of both CEO turnover and compensation to performance. Our findings shed light on what makes boards efficient, and how board monitoring of assorted decisions modifies the relationship between CEO interests and firm performance
Foreign ownership, bank information environments, and the international mobility of corporate governance
This paper investigates how foreign ownership shapes bank information environments. Using a sample of listed banks from 60 countries over 1997–2012, we show that foreign ownership is significantly associated with greater (lower) informativeness (synchronicity) in bank stock prices. We also find that stock returns of foreign-owned banks reflect more information about future earnings. In addition, the positive association between price informativeness and foreign ownership is stronger for foreign-owned banks in countries with stronger governance, stronger banking supervision, and lower monitoring costs. Overall, our evidence suggests that foreign ownership reduces bank opacity by exporting governance, yielding important implications for regulators and governments
A influĂŞncia da estrutura de propriedade e controle sobre o valor de mercado corporativo no Brasil
Financial and corporate social performance in the UK listed firms: the relevance of non-linearity and lag effects
Using environmental, social and governance scores compiled by Reuters Datastream for each company’s corporate social performance (CSP), we examine the relationship between CSP and corporate financial performance (CFP) of 314 UK listed companies over the period 2002–2015. We further evaluate the relationship between prior and subsequent CFP and prior and subsequent CSP. Based on the system-GMM estimation method, we provide direct evidence that suggests that while CFP and CSP can be linked linearly; however, when we examine the impact of CSP on CFP, the association is more non-linear (cubic) than linear. Our results suggest that firms periodically adjust their level of commitment to society, in order to meet their target CSP. The primary contributions of this paper are testing (1) the non-monotonous relationship between CSP and CFP, (2) the lagged relationship between the two and the optimality of CSP levels, and (3) the presence of a virtuous circle. Our results further suggest that CSP contributes to CFP better during post-crisis years. Our findings are robust to year-on-year changes in CFP and CSP, financial versus non-financial firms, and the intensity of corporate social responsibility (CSR) engagement across industries
Legitimidade, governança corporativa e desempenho: análise das empresas da BM&F Bovespa
International equity portfolio investment and enforcement of insider trading laws: a cross-country analysis
In this study, we examine the effects of stringent insider trading laws’ enforcement, institutions and stock market development on international equity portfolio allocation using data from 44 countries over the period 2001-2015. Our results suggest that stringent insider trading laws and their enforcement exert a positive and significant impact on international portfolio investment allocation. Further analysis indicates that the interaction between a country’s institutional quality, stock market development and enforcement of insider trading laws have a positive and significant effect on international equity portfolio allocation. The findings of this study have implications for the design of portfolio investment trading strategies and contribute to the literature on foreign equity investment decisions
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