The valuation effects of unit versus share‐only IPOs

This paper examines the abnormal returns in merger withdrawals in Australia, especially distinguishing the market response between private and public targets. We also study the determinants of those abnormal returns, including the method of payment and the impact of financial crisis periods. Using the event study method, we document that in the Australian context, the announced withdrawal of mergers involving private targets creates significantly negative valuation effects in comparison with the valuation effects in withdrawal of mergers involving public targets. We also find that a financial crisis period strongly affects abnormal returns of merger withdrawals. However, the method of payment does not have any impact on the abnormal returns.

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Valuation Effects with Transitory and Trend Output Shocks

SSRN Electronic Journal ◽

10.2139/ssrn.1294066 ◽

2008 ◽

Cited By ~ 1

Author(s):

Ha Minh Nguyen

Keyword(s):

Valuation Effects

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Private Benefits in a Contingent Claim Framework: Valuation Effects and Other Implications

SSRN Electronic Journal ◽

10.2139/ssrn.1833421 ◽

2011 ◽

Author(s):

Patrick Navatte ◽

Franck Moraux

Keyword(s):

Contingent Claim ◽

Private Benefits ◽

Valuation Effects

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The Relative and Incremental Valuation Effects of Embedded Value Disclosure by Life Insurers: Evidence from Cross-Listed Firms in the U.S.

Accounting Horizons ◽

10.2308/acch-51015 ◽

2014 ◽

Vol 29 (2) ◽

pp. 327-339 ◽

Cited By ~ 1

Author(s):

Samir M. El-Gazzar ◽

Rudolph A. Jacob ◽

Scott P. McGregor

Keyword(s):

Empirical Studies ◽

Explanatory Power ◽

Accounting Standards ◽

Cash Flows ◽

Market Prices ◽

Joint Project ◽

Listed Firms ◽

Valuation Effects ◽

Life Insurers ◽

Embedded Value

SYNOPSIS European life insurers began disclosing embedded value information (EV) over a decade ago due to concerns with traditional local accounting standards. EV is an estimate of the present value of future net cash flows from in-force life insurance business. However, U.S.-based life insurers have yet to adopt this disclosure, although several surveys and empirical studies suggest that EV disclosure provides valuable information in assessing life insurers' performance. This paper examines the incremental valuation effects of EV disclosure in the presence of U.S. GAAP. We utilize a sample of cross-listed life insurers as surrogates to assess the valuation effects of EV disclosures for U.S. life insurers. Our empirical results show a higher association between EV and stock market prices than those of traditional accounting metrics such as earnings or book value. The results also show that EV has incremental explanatory power beyond those of traditional U.S. GAAP accounting measures. Our findings provide vital input to FASB and IASB as they currently engage in a joint project to develop uniform globally acceptable, comparable accounting standards for life insurers.

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