An Examination of the Current Value Impact of a Leveraged Buyback Announcement

This research is aimed at studying the impact of a substantial share repurchase financed through debt (known as a Leveraged Buyback) on the value of the stock of a company. Prior research shows evidence of a positive average effect, but factors determining the magnitude of response for an individual company are not well understood. This study focuses on explaining variations in response to a leveraged buyback. The study suggested that shareholders like a LBB when the size of the LBB is small and the principle behind it is to supplement their dividend income. However, in cases when the company announces a substantial LBB the shareholders perceive it as bad news. This is because the shareholders feel that such a major restructuring of the capital structure at the hands of an untrustworthy management would put at risk not only their dividend income, but also their original investment

Dominion Hardware Inc.

On Monday morning November 20, 2005 Peter Seitz, President of Dominion Hardware Inc. (DHI) headquartered in Windsor Ontario, wanted to start planning for the meeting with his two partners scheduled for December 11, 2005.  It had been two months since the trio had bought the company.  The purpose of the meeting was to find ways of financing the expansion of DHI over the next five years

Management, Control And Governance Of Hawala Networks In The Gulf Cooperation Council Region

Prior research has focused on the transactional aspects of the Hawala Networks (i.e. Invisible Funds Transfer Networks). However, little is known about the structure of this networked "organisation" especially about its governance and management control systems. Clanbased Organisations and Actor Network Theories were utilised to provide the theoretical base on which a research farmework was built. In total, 20 indepth interviews were conducted with Hawaldars (Hawala service providers) using a semi-structured questionnaire. As the study focused on the Gulf Cooperation Council region, data were collected from Qatar, UAE and Kuwait. The data indicated that there were no formal governance and management control systems in place for managing Hawala Networks (HNets); there were no explicit formal processes and mechanisms for evaluating performance and there was no formal performance measurement and tracking system in place to provide the information about network functionality. Results also showed that trust acted as the most important control mechanism impacting the efciency, effectiveness and the relatively lower transaction costs associated with HNets operation

Management, control and governance of hawala networks in the gulf cooperation council region

Prior research has focused on the transactional aspects of the Hawala Networks (i.e. Invisible Funds Transfer Networks). However, little is known about the structure of this networked "organisation" especially about its governance and management control systems. Clanbased Organisations and Actor Network Theories were utilised to provide the theoretical base on which a research farmework was built. In total, 20 indepth interviews were conducted with Hawaldars (Hawala service providers) using a semi-structured questionnaire. As the study focused on the Gulf Cooperation Council region, data were collected from Qatar, UAE and Kuwait. The data indicated that there were no formal governance and management control systems in place for managing Hawala Networks (HNets); there were no explicit formal processes and mechanisms for evaluating performance and there was no formal performance measurement and tracking system in place to provide the information about network functionality. Results also showed that trust acted as the most important control mechanism impacting the efficiency, effectiveness and the relatively lower transaction costs associated with HNets operations. Asian Academy of Management and Penerbit Universiti Sains Malaysia, 2016.This report was made possible by a NPRP award (NPRP4-234-5-039) from the Qatar National Research Fund (a member of The Qatar Foundation). The statements made herein are solely the responsibility of the authors.Scopu

Analyzing informal value transfer networks through the lens of social exchanges

Purpose: This study aims to focus on how informal value transfer networks, Hawala business in particular, used social exchanges in their business dealings. More specifically, the conducted research looked into how social exchange theory was used in Hawala business relationship initiation and management. Design/methodology/approach: Twenty-one depth interviews were conducted with Hawala Network members, and Hawala customers, in Qatar, Saudi Arabia and Pakistan. The collected qualitative data were analyzed through content analysis and NVivo 11 software. Findings: The study outcome indicated that Social Exchange Theory was a principal relationship driver in Hawala Networks. Especially, trust had a pivotal role in evolvement and nurturing of Hawala Network business and social exchanges. Other relationship variables, namely, reciprocity, religious affiliation, reputation and information sharing had a significant part in relationship building as well. Results supported a prominent influence of time in carefully controlled and rigorously assessed transformation of Hawala relationships. This metamorphosis converted an exchange from short-term into a long-term orientation where limited amount transactions changed into large sum transactions and restricted information exchange moved to elaborate information sharing. In addition, findings revealed that monetary and non-monetary interactions between Hawala Network members took the form of a homogeneous club, with shared social, cultural, religious and ethnic values. In particular, financially constrained and illiterate social groups preferred Hawala services due to ease of servicing in the form of minimal bureaucracy, fast transfers and low service charges. These marginalized fractions of society had limited access to formal banking which made Hawala business their main (and in most cases only) source for sending and receiving financial remittances. Hawala Networks provided an effective alternative to formal banking for disadvantaged communities. Originality/value: This study provided unique and useful insights into the nature of social exchanges within Hawala Networks. Especially, it provided clarification on how informal networked businesses used Social Exchange Theory to by-pass the need for legal protection and formal contracts. Furthermore, the study highlighted the role Hawala business played in providing essential banking services (e.g. transfer of money and micro-lending) to educationally and economically deprived individuals.This research project was made possible by NPRP grant # [8–256-5–036] from the Qatar National Research Fund (a member of Qatar Foundation)