共查询到20条相似文献,搜索用时 31 毫秒
1.
Using a sample of seasoned equity offerings (SEOs), this paper examines the association between the choice of financial intermediary
and earnings management. We contend that with more stringent standards for certification and intense monitoring, highly prestigious
underwriters restrict firms’ incentives for earnings management to protect their reputation and to avoid potential litigation
risks, while firms with greater incentives for earnings management avoid strict monitoring by choosing low-quality underwriters.
Consistent with our predictions, we find an inverse association between underwriter quality and issuers’ earnings management.
In addition, we find that underwriter quality is positively related to SEOs’ post-issue performance, even after controlling
for the effect of earnings management. We also find that firms with low-underwriter prestige and high levels of earnings management
under-perform the most. However, the effect of underwriter choice on post-issue performance does not last long.
相似文献
Myung Seok ParkEmail: |
2.
William D. Terando Wayne H. Shaw David B. Smith 《Review of Quantitative Finance and Accounting》2007,29(3):223-240
This paper examines whether investors’ valuations of cash and share-put warrants are influenced by their potential differential
effect on firm solvency. It is motivated by the enactment of SFAS 150, which requires that all contingent put warrant obligations
be classified as balance sheet liabilities regardless of put type. Consistent with the critics of SFAS150, we show that market
participants differentially value cash and share-puts based on their solvency characteristics beyond the firm’s recorded assets
and liabilities. Our results add to existing capital structure literature by suggesting that complex financial instruments
(such as cash and share-puts) be reported separately from each other on a firm’s balance sheet.
相似文献
William D. TerandoEmail: |
3.
The effect of accessibility upon rent is investigated for office properties located in Downtown Stockholm. Starting from the
firm’s cost minimization problem, a translog hedonic model is derived. The results suggest the model has good predictive power
in explaining the variation in the log of the rent. A negative rent gradient is obtained with a base approximately 90 m from
the postulated focal point. It appears as if Space Syntax adds important information to the understanding of the intraurban
office rent pattern.
相似文献
Olof NetzellEmail: |
4.
Lili Xie 《Journal of Financial Services Research》2007,32(3):177-202
This paper studies the relationship between universal banking and firm performance. With 40 developing and developed countries,
I find that the overall effect of universal banking on firm growth is negative. This suggests that the negative effect of
conflicts of interest dominates the positive effect of economies of scale and scope in universal banking. However, in countries
with stronger protection of creditors’ rights and higher information efficiency, conflicts of interest are less likely and
the negative relationship between universal banking and firm growth is significantly weaker.
相似文献
Lili XieEmail: |
5.
Investment opportunities,free cash flow,and stock valuation effects of secured debt offerings 总被引:1,自引:1,他引:0
Shao-Chi Chang Sheng-Syan Chen Ailing Hsing Chia Wei Huang 《Review of Quantitative Finance and Accounting》2007,28(2):123-145
This paper examines the role of investment opportunities and free cash flow in explaining the source of the stock valuation
effects of secured debt offerings. We find a significantly positive relation between a firm's investment opportunities and
its stock price response to announcements of secured debt issues. This evidence supports the investment opportunities hypothesis
that secured debt financing is more valuable for issuing firms with high growth opportunities. In contrast, we find a lack
of support for the free cash flow hypothesis. These findings hold even after controlling for other potentially influential
variables. Our study provides a better understanding of the relative importance of various potential determinants in explaining
the variation in the valuation impact of secured debt issues.
相似文献
Chia Wei HuangEmail: |
6.
Firm diversification and earnings management: evidence from seasoned equity offerings 总被引:4,自引:3,他引:1
Chee Yeow Lim Tiong Yang Thong David K. Ding 《Review of Quantitative Finance and Accounting》2008,30(1):69-92
Popular press suggests that diversified firms are more aggressive in managing earnings than non-diversified firms. We examine
this claim in the seasoned equity offering (SEO) setting, where firms have been shown to have the incentive to manage earnings
upwards. Using the cross-sectional modified Jones [(1991) J Accounting Res 29:193–228] model to measure discretionary current accruals, we find that discretionary current accruals
are higher among diversified firms than in non-diversified ones. Our evidence is consistent with the view that the extent
of firm diversification is directly related to the degree of earnings management. We further show that diversified issuers
with high discretionary accruals underperformed other SEO firms.
相似文献
David K. DingEmail: |
7.
Zhilan Feng Chinmoy Ghosh C. F. Sirmans 《The Journal of Real Estate Finance and Economics》2007,35(3):225-251
We analyze director compensation for Real Estate Investment Trusts (REITs) and investigate the relations between director
compensation and other measures of the board independence and board monitoring. Using 136 REITs in 2001, we find that REITs
that pay higher equity-based compensation to their board members are associated with higher financial performance. Our data
indicate that board equity-based compensation is positively related to the existence of an independent nomination committee,
however, it has no significant relationship with board size, proportion of outside directors, CEO duality and CEO tenure and
ownership.
相似文献
Zhilan FengEmail: |
8.
We examine financially distressed firms and document how governance characteristics affect (1) a firm’s ability to avoid bankruptcy
and (2) the power of financial/accounting information to predict bankruptcy. Overall, our findings indicate that a distressed
firm’s governance characteristics significantly affect its probability of bankruptcy. We find that smaller and more independent
boards with a higher ratio of non-inside directors and with larger ownership stakes of inside directors are more effective
at avoiding bankruptcy once distress is indicated. These results are consistent with the belief that these types of governance
structures induce more effective monitoring. The results are also consistent with the view that the inclusion of governance
characteristics enhances the power of financial accounting models in predicting bankruptcy.
相似文献
Steve L. SlezakEmail: |
9.
We examine Initial Public Offerings (IPOs) of Real Estate Investment Trusts (REITs) that went public between 1986 and 2004.
Consistent with previous studies, we find that REIT IPOs are associated with lower levels of underpricing relative to traditional
issues. We also find that REITs are associated with smaller file price revisions. Both findings are potentially attributable
to the lower level of uncertainty associated with pricing REITs. In contrast, using an alternative measure of issuance costs
that incorporates the share retention decision by preexisting owners, we find no significant difference between REIT and non-REIT
issues, suggesting the results of previous studies are not robust to various specifications of issuance cost and that preexisting
owners do not necessarily benefit from the lower level of underpricing. Additionally, we find no difference in the issuance
costs of equity versus mortgage REITs, particularly once we control for the use of umbrella partnerships.
相似文献
Mark K. PylesEmail: |
10.
This paper develops a theory of a firm’s hedging decision with endogenous leverage. In contrast to previous models in the
literature, our framework is based on less restrictive distributional assumptions and allows a closed-form analytical solution
to the joint optimization problem. Using anecdotal evidence of greater benefits of risk management for firms selling “credence
goods” or products that involve long-term relationships, we prove that those optimally leveraged firms, which face more convex
indirect bankruptcy cost functions, will choose higher hedge ratios. Moreover, we suggest a new approach to test this relationship
empirically.
相似文献
Lutz HahnensteinEmail: |
11.
Mário Henrique Ogasavara Yasuo Hoshino 《Review of Quantitative Finance and Accounting》2009,33(1):37-58
A foreign firm investing in a culturally different market usually faces a certain level of uncertainty. This study proposes
that as a multinational company accumulates experiential knowledge, it develops more capabilities and know-how and consequently
reflects on subsidiary performance. Based on a subsidiary level sample of Japanese firms located in Brazil, the empirical
findings of this study demonstrate that the accumulation of both international and local experiential knowledge can positively
affect subsidiary performance. Moreover, a firm’s sequential foreign direct investment decision in the local market is a key
strategy to achieving a higher level of subsidiary profitability in comparison with a first-time investment firm.
相似文献
Yasuo HoshinoEmail: |
12.
Brent W. Ambrose Yildiray Yildirim 《The Journal of Real Estate Finance and Economics》2008,37(3):281-298
Previous research either assumes default free leases or leases subject to default risk using a structural approach. However,
structural credit risk models suffer from a common criticism that the firm’s asset value process is unobservable. We develop
a reduced form credit risk model for leases that avoids making assumptions regarding unobservable asset valuation processes.
Furthermore, we assume a correlated market and credit risk that provides us with a simple analytic formula for valuing defaultable
lease contracts. Numerical analysis reveals that tenant credit risk can have a substantial impact on the term structure of
leases. Finally, we use the model to demonstrate the implied lease term structure for a set of retail and financial firms
in the Fall of 2000.
相似文献
Yildiray YildirimEmail: |
13.
John J. Maher Robert M. Brown Raman Kumar 《Review of Quantitative Finance and Accounting》2008,31(2):167-189
We examine the valuation effects of overall demand for corporate equities combined with the influence of abnormal earnings
and unexpected funds flow. Our results indicate that the expected and unexpected net new total flow of funds into all stock
mutual funds do not by themselves have a meaningful effect on firm equity valuation. However, we find the combination of unexpected
funds flow and realized abnormal earnings have significant and important valuation effects. Importantly, the valuation impact
is greatest for those firms with high earnings growth potential that also operate in an environment characterized by high
information asymmetry.
相似文献
Raman KumarEmail: |
14.
Elizabeth Webb 《Journal of Financial Services Research》2008,33(1):5-20
This study analyzes the effects of monitoring intensity on compensation and turnover for CEOs of publicly-traded banks. Using
a sample of banks from 1992 to 2004, I find that monitoring intensity plays a significant role in compensation levels, pay-for-performance
sensitivity, and CEO turnover. The results show that CEOs from highly-rated institutions receive smaller pay than CEOs from
competing institutions, and that monitoring intensity, as proxied by CEO age, influences the relationship between market performance
and executive incentives. These findings suggest that regulatory ratings and CEO age impact optimal bank governance structure
by varying incentive sensitivity to market performance.
相似文献
Elizabeth WebbEmail: |
15.
Make or buy new technology: The role of CEO compensation contract in a firm’s route to innovation 总被引:3,自引:0,他引:3
Yanfeng Xue 《Review of Accounting Studies》2007,12(4):659-690
A firm’s board of directors, based on its risk tolerance or “appetite,” sets the corporate objectives. It is then the management’s
job to meet the objectives by adopting appropriate strategies. However, the board can design compensation policies to encourage
desired management strategy choices. This paper explores the extent to which management compensation policies are aligned
with strategy choices for obtaining new technology. Firms obtain new technology either through internal R&D or through acquisitions,
often labeled “make” and “buy” strategies, respectively. The “make” strategy is inherently more risky, with much of the high
risk idiosyncratic. Furthermore, U.S. GAAP requires that R&D expenditures be expensed but allows capitalization of acquisition
costs, thus a firm using the “make” as opposed to the “buy” strategy will experience a greater negative effect on accounting
earnings. I hypothesize that these differences will lead risk-averse and utility-maximizing managers to implement the “buy”
strategy if their compensation is heavily weighted on accounting-based performance measures. Conversely, managers with more
stock-based compensation, especially stock options, are more likely to choose to develop new technology internally. Using
data from U.S. high-tech industries and a simultaneous equations regression framework, I find evidence consistent with the
above hypotheses.
相似文献
Yanfeng XueEmail: |
16.
Changes in CEO compensation structure and the impact on firm performance following CEO turnover 总被引:4,自引:3,他引:1
David W. Blackwell Donna M. Dudney Kathleen A. Farrell 《Review of Quantitative Finance and Accounting》2007,29(3):315-338
We document changes in compensation structure following CEO turnover and relate them to future performance. Compared to outgoing
CEOs, incoming CEOs derive a significantly greater percentage of their compensation from option grants and new stock grants.
The voluntary turnover sample shows similar changes in compensation structure while the forced turnover sample results suggest
that new stock grants drive the significant increase in incentive compensation following turnover. Post-turnover performance
is positively associated with new stock grants as a percentage of total compensation in the full sample and when analyzing
forced and voluntary turnovers separately. We find limited evidence that future operating income is positively associated
with option grants following forced turnover. Post-turnover improvement in operating income is positively associated with
an increase in new stock grants for the incoming relative to the outgoing CEO.
相似文献
Kathleen A. Farrell (Corresponding author)Email: |
17.
Piet M. A. Eichholtz Nils Kok Roger Otten 《The Journal of Real Estate Finance and Economics》2008,36(4):405-426
We study the drivers of executive compensation in the listed UK property sector. The UK provides an excellent opportunity
to analyze executive compensation due to high transparency in the different components of executive compensation. We show that company size is the most important variable in explaining the level of executive compensation. We find that
absolute and relative share performance significantly explains long-term compensation, that management style has a distinct
influence on the level of executive compensation, and that using alternative monitoring mechanisms (institutional shareholders,
debtholders, and outside directors) leads to higher levels of long-term incentives. We find only weak evidence of pay-performance
sensitivity for both cash and long-term compensation. Executive shareholdings provide a much stronger link between pay and
performance than does executive compensation.
相似文献
Piet M. A. EichholtzEmail: |
18.
Economic consequences of financial reporting changes: diluted EPS and contingent convertible securities 总被引:1,自引:0,他引:1
This paper examines the economic consequences of changes in the financial reporting requirements for contingent convertible
securities (COCOs). Using a sample of 199 COCO issuers from 2000 to 2004, we find that issuers are more likely to restructure
or redeem existing COCOs to obtain more favorable accounting treatment when the financial reporting impact on diluted earnings
per share (EPS) is greater and when EPS is used as a performance metric in CEO bonus contracts. These results provide new
evidence that managers are willing to incur costs to retain perceived financial reporting and compensation benefits. We also
present evidence of significantly negative stock returns around event dates associated with the financial reporting changes,
consistent with investor anticipation of the agency costs associated with the rule change.
相似文献
Christine I. WiedmanEmail: |
19.
This article revisits the debate on the nature of private placements by specifying that informed insiders make trading decisions
in the secondary market and equity issuance decision in the primary equity market (Lee and Wu (2008)). This article uses conditional residuals from the insider trading regression (abnormal insider trades) and conditional
residuals from equity financing choice regression (unexpected equity financing choice) to measure private information. An
important advantage of conditional correlation coefficient approach over the two-stage approach (Lee and Wu 2008) in testing the presence of asymmetric information is that the former is bounded by −1 and 1 and thus permits cross-sectional
comparisons the relatedness between abnormal insider trades and unexpected equity financing choice.
相似文献
Lee Cheng-FewEmail: |
20.
Nikolas Rokkanen 《Financial Markets and Portfolio Management》2009,23(1):31-57
The paper examines the credit spread between government and corporate bonds at different maturities. Theoretical models assume
that credit risk premiums for high quality firms monotonously increase with maturity. We find evidence suggesting that bonds
issued at maturities attracting the highest issuance volumes tend to have credit risk premiums that are on average 10 to 15
basis points higher than issues at nonconventional maturities. These results point out a shortcoming of existing theoretical
models and show that the credit yield curve is not smooth, but affected by the local supply of issues at various parts of
the yield curve. In addition, the empirical evidence presented in this paper indicates that firms utilizing the bond markets
for funding could lower their funding costs by shifting the term of their debt away from the most commonly targeted maturities.
相似文献
Nikolas RokkanenEmail: |