Search results for "shareholder"
showing 10 items of 84 documents
Asymmetry of CEO Compensation and the Role of Relative and Macroeconomic Shocks in Risk Taking Incentives
2015
If managers are risk-averse and compensation schemes are not directly linked to shareholder wealth, incentives to allocate effort to manage effects of relative and macroeconomic shocks may be distorted. In this paper we develop a simple model to identify factors that determine the optimal allocation of effort to manage relative and macroeconomic shocks. We then show how serial correlation in shocks, the relative variance of shocks and the ability of managers to influence the effects of shocks on shareholder wealth determine the optimal allocation of managerial effort. Thereafter, we emphasize how CEO compensation depends on performance variables distinguishing between relative and macroecon…
Beyond the Law and Finance Approach: The Shareholders' Cognitive Role and Its Effects on the Analysis of Ownership Structure and Corporate Governance
2004
The dominant law and finance approach of ownership structure and corporate governance is based on an unrealistic assumption, that of a total complete separation between ownership and control, in particular in the European nations. This approach based on the seminal Berle and Means' analysis and on agency theory, postulates that shareholders carry only a financial function limited to equity financing and assumption of financial risk. In view of the actual ownership structures, this approach has a weak explanatory power. Therefore, this article proposes another model, based on the cognitive role - directing and contribution of competences -, that the main shareholders often keep. It is possib…
The Election of the Big 4 Audit Firms In Mexico An Empirical Analysis (2000-2007)
2015
In this article, we present the results of an empirical study on the factors that determine the election of the Big 4 in Mexico during the period from 2000 to 2007. To this purpose, we have estimated a logistic regression model using a sample of companies listed on the Mexico Stock Exchange and its financial statements audited by an independent auditor. The results indicate that corporate features such as; the presence of controlling shareholders, the debt level, the presence of foreign investors, business size and requirement for additional services by audited companies are some of the factors determining the election of the Big 4 in Mexico.
Value Creation When Acquiring Public vs Private Firms. Spanish Evidence
2013
We investigate shareholder value creation of Spanish listed firms in response to announcements of acquisitions of unlisted companies and compare this experience to the purchase of listed firms over the period 1991–2011. Similar to foreign markets, acquirers of listed targets earn insignificant average abnormal returns. However, acquirers of listed targets that perform a first bid show significant negative abnormal returns. Acquirers of unlisted targets gain significant positive average abnormal returns. When we relate these results to company and transaction characteristics our evidence suggests that the listing status effect is mainly associated with the fact that unlisted firms tend to be…
How Pioneering Managers Strive to Integrate Social Risk Management in Government Debt Collection
2019
This study explores risk management issues in local government-owned enterprises in accordance to the third wave of governance, organization and management logics of Public Administration: the Public Value approach. However, the coexistence between the emerging Public Value approach and the more traditional and consolidated ones is often difficult, also because of the resistance of shareholders who may not consider the management of system-level risks as a priority mission for their company. For this reason, we have analysed the strengths and weaknesses of the Traditional Approach and the New Public Management approach in the public sector management. The case study presented reveals some i…
The Impact of Corporate Governance on Internet Financial Reporting in Concentrated Ownership Companies
2013
In the context of agency theory this study investigates the effect of corporate governance (CG) on Internet Fianncial Reporting disclosure (IFR) in concentrated ownership envitonment, such as Italy. We hypothesize that IFR may be explain in term of increasing trasparency in order to defen minority shareholder interest, so we predict, and find, a positive association between the extent of a firm's IFR and its CG and a negative assocaition between IFR and ownership structure. Abstract. This study investigates, upon agency theory, the effect of corporate governance (CG) on Internet Financial Reporting disclosure (IFR) in an ownership concentrated environment, such as Ita-ly. We hypothesize tha…
Has the Push for Equal Gender Representation Changed the Role of Women on German Supervisory Boards?
2017
In Germany, an intensive public debate about increasing female participation in leadership positions started in 2009 and proceeded until the beginning of 2015, when the German parliament enacted a board gender quota. In that period, the share of women on supervisory boards for 111 German publicly listed and fully codetermined companies (i.e. those which are affected by the quota law) more than doubled from 10.6 percent in 2009 to 22.6 percent in 2015. In 2016, the first year when the law was effective, the female share increased again by 4.5 percentage points. Using a hand-collected dataset, we investigate whether the rise in female board representation was accompanied by a change in gender…
Financial institutions’ risk profile and contribution to the sustainable development goals
2021
This study analyses the impact of Spanish financial institutions’ risk profile on their contribution to the 2030 Agenda. Financial institutions play a significant role in ensuring financial inclusion and sustainable economic growth and usually incorporate environmental and social considerations into their risk management systems. The results show that financial institutions with less capital risk, with lower management efficiency and with higher market risk usually make higher contributions to the Sustainable Development Goals (SDGs), according to their sustainability reports. The novel aspect of the present study is that it identifies the risk profile of financial institutions that incorpo…
Make It or Break It: The Break-Through Rule as a Break-Through for the European Takeover Directive?
2003
The break-through concept is the most recent idea to break the deadlock with respect to EU takeover legislation. As devised by the High-Level Group of Company Law Experts, chaired by the Dutch Jaap Winter, the break-through concept would do away with two of the most important types of impediments to takeovers within EU member states. The first part of the paper explores the break-through concept in some detail, particularly with respect to its premises, its two guiding principles - exclusive shareholder decisionmaking and proportionality, - and the justifications given by the Group for the proposed interventionist rules. The second part of the paper is dedicated to an analysis of the econom…
Co-determination and Merger Incentives from Transfers of Wealth: Firm Owners vs. Workers
2010
When workers can capture rents from their influence on corporate decisions, mergers can become a device to generate transfers of wealth. This paper examines the merger incentives from these transfers of wealth. It is found that worker influence increases merger profitability, in line with the owners’ incentive to use mergers to reduce the rents captured by workers. In contrast, the workers’ merger incentives are shown to be decreasing in their own degree of influence on the merger decision, in line with the view according to which workers can be used by incumbent managers as a defensive instrument in acquisitions.