Between a rock and a hard place: managing diversity in a shareholder society

This study examines whether the appointment of racial/ethnic minorities into top management positions has a different impact on share price than the appointment of Caucasians into equivalent positions. Our dependent variable is the degree of change in share price following the announcement of racial/ethnic minority and Caucasian men into senior management positions. Market reaction to the naming of racial/ethnic minorities into corporate leadership positions is significant and negative, while the market's reaction to the naming of Caucasians is significant and positive. However, the negative market reaction to the appointment of racial/ethnic minorities into top management positions is mitigated in those firms that have explicitly incorporated diversity into their strategic growth plan. Our findings suggest that to successfully introduce diversity into upper management, firm decision makers must first signal the importance of diversity to market actors.     

Tender-offer premia as a management signal

In this paper we test whether tender-offer premia for share repurchases can be viewed as an outgrowth of optimizing behavior by managers in a signalling environment. This is in contrast to previous work on the signalling hypothesis which focuses on the stock market's reaction to the announcement of tender offers. Our empirical results indicate that premia are systematically related to the price of the firm's stock and the level of the stock market but are not related to either management compensation, inside holdings of stock or the ratio of shares sought to total shares.     

<Emphasis Type="BoldItalic">Mad Money</Emphasis> stock recommendations: market reaction and performance

We examine the stock recommendations of Jim Cramer televised on CNBC’s Mad Money, and document significant market reactions (i.e., announcement returns and volume) to Cramer’s recommendations, particularly for small capitalization stocks. The following findings indicate that the announcement returns are primarily due to price pressure from uninformed trading as opposed to the recommendations providing new value related information: announcement returns reverse following buy recommendations; bid-ask spreads temporarily decline; and there is no evidence of positive longer-term abnormal returns. One implication, when considered in combination with other works, is that investors should be cautious in following stock recommendations announced in the mass-media.     

Technology transactions,announcement effect,and reversal: Dissecting an anomaly

We examine the short term stock price performance of firms that acquire or sell technology rights. We find significant positive announcement-period abnormal returns to the acquirers and sellers. However, the price increases reverse during the subsequent twenty trading days. These quick fortune reversals cannot be attributed to methodology; they prevail in the late 1970s through the 2000s, in bear and bull stock markets, and in both high and low technology industries. Upon splitting the sample into two subsamples comprised each of stocks with either pre-announcement price run-up or decline; we find that the abnormal return reversal is confined to the latter subsample. Stocks that witness price run-up prior to the announcement do not reverse to original prices but lose the momentum right after the announcement-period. We believe this is caused by the combination effect of the momentum prior to-and the impact of the announcement.     

Expanding leadership diversity through formal mentoring programs

To attract and retain people, it is essential that organizations design and successfully implement programs and processes that develop people and nurture their talents. For those who aspire to a leadership role, the opportunity to engage in mentoring relationships with senior‐level leaders is a powerful way to accelerate growth. In the majority of informal mentoring relationships, mentors and protégés share similar racial, gender, and cultural backgrounds. Senior leaders in most large organizations are still primarily white males. As a result, it can be difficult for people from diverse backgrounds who aspire to higher level leadership roles to find senior executives with whom they can develop a mentoring relationship. To address this challenge, some organizations have implemented formal mentoring programs that are specifically designed to facilitate development of people from diverse backgrounds. Unfortunately, previous research studies conducted on the impact of formal mentoring relationships have shown that these programs do not consistently achieve the desired outcomes. The change intervention described in this article suggests that formal mentoring programs can significantly influence the movement of protégés from diverse backgrounds into higher level leadership positions.     

定向增发公告效应在股市中的异化现象——关于中国证券市场的实证研究

本文以中国证券市场2006～2008年成功进行定向增发的上市公司为样本,研究了定向增发公告效应在牛市、熊市中的异化现象。研究发现在牛市周期中仅仅公告日当天存在显著的正公告效应,公告日前后都不存在显著的正公告效应;但是在熊市周期中不仅公告日当天存在显著正公告效应,而且从公告日前两天开始一直到公告日后10天都存在显著正公告效应。在不同市场态势下,公告效应与折扣的关系也不相同:在熊市周期中,随着定向增发折扣的增加,公告效应相应减弱,而在牛市周期中公告效应增强。最后,论文给出了基于投资者情绪的理论解释以及相应的启示。     

Women leaders—challenges,successes, and other insights from the top

The reasons for the persistent lag of women as leaders are complex. Attrition is an issue for women for many reasons, including traditional gender roles that may affect how women are perceived and the choices they have available (or they make), a lack of role models, the undervaluing of women's traditional communication and leadership styles, and organizational culture. Within medicine (clinical environments) and academic medicine (medical school and clinical environments), it is clear that the lack of women in leadership positions is more than a pipeline or a labyrinth problem. We undertook this case study to better understand the current challenges experienced by women aspiring to leadership positions in medicine and academic medicine. What types of challenges do women face as they move up in an academic or medical environment? And which challenges impact more than others in attaining leadership roles in these organizations: race and ethnicity, differences in leadership style and skills, mentorship and network, life experiences and family responsibilities, organizational culture, or gender? Our study addresses a gap in the literature by examining the leadership experiences of eight successful women in the fields of medicine and academic medicine. The emerging insights from these leaders may be useful for women from diverse backgrounds aspiring to be senior leaders in the future.     

The impact of capacity expansion on the market value of the firm

This paper empirically investigates the impact of capacity expansion decisions on the market value of the firm. Event study methodology is used to estimate the abnormal change in stock prices around capacity expansion decision announcements. On the day of the announcement, the magnitude of the price change is abnormally high, evidenced by a significantly positive mean standardized square of the abnormal change (Beaver's U-statistic). We also analyze factors that we could affect the direction and magnitude of the abnormal change in the stock prices. We find that the change in price on the day of the announcement is positively and significantly related to the real growth rate of the industry, and negatively and significantly related to the variability of demand. A negative relationship between the price change and industry capacity utilization is also found which can have important implications for companies which follow the wait-and-see approach to capacity expansion decisions. We also find management ownership to be a significant predictor in explaining stock price changes around these announcements.     

The two stages of an equity carve-out and the price response of parent and subsidiary stock

This paper provides evidence that an equity carve-out is usually the first stage of a two-stage process either to dispose of parent interest in a subsidiary or eventually re-acquire the subsidiary's publicly traded snares. Both the initial carve-out announcement and subsequent sell-off announcement yield, on average, significantly positive abnormal returns to parent shareholders. In contrast, the parent's price response to a re-acquisition of subsidiary shares is, on average, insignificantly positive. Both sell-off and re-acquisition announcements have a strong positive impact on subsidiary share prices. These gains, however, are offset by the subsidiaries' below-average return performance preceding the second event.     

Trading cost expectations: Evidence from S&P 500 index replacement stock announcements

This paper tests the effect on stock value of an expected change in future trading costs. The capitalized value of a reduction in trading costs is hypothesized to increase the stock value, a trading cost effect. Improved liquidity reduces trading costs. Inclusion as an S&P 500 Index replacement stock is an event hypothesized to increase liquidity. We use 114 observations between January 1, 1983 and October 12, 1989 of stocks added to the Index as replacements for stocks removed. The abnormal return of each stock is regressed against the ratio of the bidask spread to the price of the stock, the change in trading volume of the stock, and the open interest in the Index futures contracts at the close of the month prior to the replacement announcement. We find that the positive abnormal returns for replacement stocks are related to increased daily trading volume after inclusion in the Index. Further, the trading cost effect is proportional to percentage bid-ask spreads prior to inclusion. The trading cost effect increases as trading in derivatives of the Index increases. The volume and stock price changes after replacement are not transitory, indicating an improvement in liquidity. Three alternate hypotheses suggested in prior research to explain the abnormal returns for replacement stocks are tested. Testing each of the three models previously considered: price pressure, inelastic demand curves, and information, we find that none can be accepted with statistical confidence. The abnormal returns of Index replacement stocks are consistent with rational pricing of an anticipated reduction in future transaction costs. This anticipated reduction is capitalized in the value of the stock at the time of the replacement announcement. These results are consistent with a trading cost effect.     

Market reaction to uniform capital adequacy guidelines in the banking industry

In this paper the authors assess the stock market reaction to information on uniform capital requirements that was disseminated on four different dates: September 29, 1987; December 7, 1987; December 10, 1987; and July 11, 1988. The share prices of U.S. money center banks were adversely affected by the December 7, 1987, announcement regarding proposals to make regulatory standards more uniform. The share prices of U.S. superregional banks were not affected by this announcement. The difference in degree of response is attributed to disparate capital positions between the two groups of banks. In order to meet the new guidelines, U.S. money center banks may need to implement policies (such as issuing new stock) that are viewed unfavorably by the market.     

Neighborhood effect on stock price comovement

We investigate how the geographic distance between firms’ headquarters affects their stock price comovement. Our results show that a firm's stock return has stronger comovement with the returns of nearby firms than with those of distant firms. Being in the same state and/or in the same industry strengthens the return comovement, but does not substitute for the negative effect of geographic distance on price comovement. Firms of similar share price and size also show stronger return comovement, but these factors do not mitigate the negative distance impact. Consistent with investor home bias and neighborhood effect literature, our results suggest that investors’ preference for local stocks and their interactions lead to correlated trading in local stocks and therefore stronger local price comovement.     

中国城市土地市场存在“赢者诅咒”吗？

借鉴相关研究成果,构建一个综合性的时间窗口分析模型,利用我国境内房地产上市公司在20个城市购置的205宗土地作为样本,设置前向与后向共八个事件窗口,定量考察土地市场价格信号对股票市场的影响。实证结果表明：土地市场与股票市场是两个高度关联的市场,两个市场之间存在信号传递作用,短期内具有正向冲击效应,地价信号在土地出让后能够在短期内影响股票收益率,形成对股票价格的短期冲击效应;土地出让价格信号对股票市场的影响具有时间上的不对称性,地价信号对于股票收益率的影响主要发生在土地成交之后,股票市场对于土地竞拍以前的信息没有明显响应;土地市场所发现的价格信号是关联市场价格波动的信号源,改变竞价人的预期是市场稳定的关键。     

股票价格低于每股净资产的影响因素分析——来自中国A股上市公司的经验证据

破净指股票价格跌破每股净资产,是股票价格与每股净资产关系的一种极端表现。本文以1 059家A股上市公司为样本,采用修正的Ohlson模型,分组对股价破净的影响因素进行研究。结果发现:对于业绩为正的非ST企业而言,公司规模大、上市时间早、机构投资者持股比例低的国有企业容易破净;ST企业的股票价格虽下跌,但其重组捷径和壳资源改变了投资者的预期,使ST企业不破净或较少破净。     

Recovery of hidden information from stock price data: A semiparametric approach

This paper proposes a new methodology for measuring announcement effect on stock returns. This methodology requires no prior specification of the event day, event, and estimation windows, and therefore is a generalization of the traditional event study methodology. The dummy variable, which indicates whether the event occurred or not, is treated as missing. The unconditional probability of abnormal return is estimated by the EM algorithm. The probability that announcement is effective and the average announcement effect are estimated by the Gibbs sampler. How the method works is demonstrated on simulated data and IBM stock price returns.     

The making of women trade union leaders

A trade union's constitution is intended to produce its leaders in a democratic and even-handed manner, but the reality for women is one of inequality. They remain almost invisible in senior positions in British unions. The social processes by which women do or do not progress in a union's career structure are investigated through a case study of SOGAT ‘82.     

Towards redressing historical inequities?

Abstract

This article examines women's positions at senior management levels of South Africa's civil service given its affirmative action policy that attempts to tackle women's historical marginalization in public sector organizations. It examines ‘women's empowerment', gender and race inside the public service within the context of South Africa's historical inequities within the civil service, and the post-apartheid government's attempts to correct these. It concludes that women's positions inside the civil service have improved gradually since the demise of apartheid, an initial step towards substantive equality with their male counterparts, but recognizes that much still needs to be done if women are to be represented proportionately in senior civil service positions. It argues that this might help to improve the implementation of gender sensitive programs at various policy levels. Information for this article was gathered from various sources including interviews with civil servants in selected national and provincial departments.     

Bewertung von Personalabbauprogrammen aus Aktionärssicht – Eine Bestandsaufnahme der empirischen Ereignisstudien-Forschung –

This paper reviews evidence from 32 event studies on effects of an announcement of a large scale reduction in work force (RIF) program on the share price/equity value of stock-quoted corporations and on factors suited to explain RIF impact variations. All in all the empirical data indicate that on average (Anglosaxon) capital markets do not respond to RIF notifications with significantly positive abnormal returns. Rather, they tend to display negative abnormal share price consequences, i.e. RIF announcements – as typically shaped by corporations – are likely to destroy shareholder value. On the whole, extant work suggests that abnormal returns following RIF disclosures tend to be worse if (1) the stated RIF reason is declining demand, (2) the reduction to total staff ratio is high and (3) the reduction is based mainly on layoffs instead of voluntary separations. Further methodologically improved research is required to explore the extent to which the present review’s conclusions hold in German-speaking countries.     

FEMALE ENTREPRENEURSHIP IN EARLY ISLAM

The absence of female leaders in business and public life is conspicuous in Islamic societies. One explanation may be that Islam imposes legal and social inequality on men and women. However, a comparison of female entrepreneurship in pre‐Islamic society and in Mohammed's era shows that women occupied leadership roles before and after the establishment of Islam. Mohammed's wives were commercially astute, and Mohammed and his contemporaries respected the rights of women to make decisions regarding finances, matrimony and religious affiliation. The right of women to assume public leadership roles is compatible with Islam.     

Women in grassroots leadership: Barriers and biases experienced in a membership organization dominated by men

Among governing boards traditionally dominated by men, the presence of women is becoming more common. However, these women may face prejudices and discrimination that prevent them from feeling and ultimately being successful. This qualitative study focused on the experiences of women who participated in a grassroots organization's leadership training program. Interviewees revealed that they believed gender‐related obstacles were preventing them from being effective leaders. Four significant themes emerged: persisting stereotypes and bias, separation and isolation, desire for change, and potential for added value. In response, the authors recommend organizations and practitioners engage in more intentional and complete implementation of path‐goal theory throughout the leadership development process.