Managers’ and Investors’ Responses to Media Exposure of Board Ineffectiveness

2009 ◽  
Vol 44 (3) ◽  
pp. 579-605 ◽  
Author(s):  
Jennifer R. Joe ◽  
Henock Louis ◽  
Dahlia Robinson
Keyword(s):  
Media Exposure ◽  
Shareholder Wealth ◽  
Economic Consequences ◽  
Individual Investors ◽  
Corporate Boards ◽  
Trading Behavior ◽  
Economic Agents ◽  
Noisy Information ◽  
Corrective Actions ◽  
The Impact

AbstractWe analyze the impact of the press on the behavior of various economic agents by examining how media exposure of board ineffectiveness affects corporate governance, investor trading behavior, and security prices. Our focus on board quality is motivated by the strong media criticism to which corporate boards and corporate America, in general, have been recently subjected. The results indicate that media releases of (noisy) information have significant economic consequences. In particular, media exposure of board ineffectiveness forces the targeted agents to take corrective actions and enhances shareholder wealth. Individual investors appear to react negatively to the media exposure, whereas investment firms act as if they anticipate the targeted firms’ corrective actions.

Information Structure, Trading Behavior and Stock Prices in the Thai Market

1998 ◽  
Vol 01 (03) ◽  
pp. 321-353 ◽  
Author(s):  
Anya Khanthavit
Keyword(s):  
Institutional Investors ◽  
Stock Prices ◽  
Information Structure ◽  
Stock Return ◽  
Emerging Market ◽  
Individual Investors ◽  
Herd Behavior ◽  
Trading Behavior ◽  
Foreign Investors ◽  
Noisy Information

This study examines the information and trading behavior of investors in the Thai market. This market is an important emerging market in the Pacific Rim, whose structure is different from that of a more developed market. We propose a vector autoregression model to describe and test action and reaction of the portfolio reallocation of investors and the movement of stock prices over time. Using daily market data from January 3, 1995 to October 27 1997 , this study finds that, in the Thai market, the foreign investors bought stocks when prices had risen. This strategy was consistent with a positive autocorrelation in the stock return. The local individual investors bought stocks when prices had fallen, while the local institutional investors disregarded past price changes. These two investor groups also exhibited herd behavior of both informational cascades and interpersonal communications types. They followed each other and reacted negatively to an innovation in the stock return. It is interesting to find that the foreign investors brought new information into the market. The local individual and local institutional investors brought in noise, but the explanatory share of this noisy information in the stock volatility was small. So, the study concludes that the volatility in the Thai market was not excessive.

scholarly journals Forecasts in a disruptive environment by SARS-COV-2 in individual economic agents

2020 ◽  
Author(s):  
Harnol Cáceres-Cáceres
Keyword(s):  
Developed Countries ◽  
Research Literature ◽  
Economic Consequences ◽  
State Of Emergency ◽  
Economic Agents ◽  
The Face ◽  
Acute Respiratory Diseases ◽  
Adults And Children ◽  
Specialized Institutions ◽  
The Impact

A virus of the SARS family was incubated in late 2019 in Wuhan City, Hubei Province, China (Munster et al., 2020, p. 1); in early 2020 the virus spread beyond Asia (Ahani & Nilashi, 2020), its epicenter of origin, and is now found in 173 countries (Dong et al., 2020) (Coronavirus Update (Live), 2020); declared a pandemic by the WHO in March 2020 (Adhanom, 2020), the virus has a mortality rate of 3% (Biscayart et al., 2020), mainly affecting older adults and children with a predisposition to acute respiratory diseases, diabetes and hypertension. (Yang et al., 2020, p. 6) The response of governments to this crisis was mostly to temporarily close their air and sea ports and borders (Yang et al., 2020, p. 10), to declare quarantine and in some cases to enact a state of emergency (Sohrabi et al., 2020) in order to mitigate the infection, which has affected the economy of developed countries and emerging economies (Arshad Ali et al., 2020) (McCloskey & Heymann, 2020) (Rosas Gonzalez, 2020) (Ahani& Nilashi, 2020) (Ayittey et al., 2020) (Economics, 2020), specifically to economic agents, such as companies, consumers, producers, exporters, investors, government entities, and their behavior developed in the face of this disruptive environment resulting from the Asian virus is the subject of this article. The methodology used is one of documentary review and compiles selected research literature and current financial and economic reports on the impact of the virus in a macro context and explores the different forecasts of specialized institutions in the world economy regarding the actions taken by governments. The document shows interest in the economic consequences of the impact of the pandemic and serves as a support to promote future actions to mitigate the effects of the post-crisis.

scholarly journals Forecasts in a disruptive environment by SARS-COV-2 in individual economic agents

2020 ◽  
Author(s):  
Harnol Cáceres-Cáceres
Keyword(s):  
Developed Countries ◽  
Research Literature ◽  
Economic Consequences ◽  
State Of Emergency ◽  
Economic Agents ◽  
The Face ◽  
Acute Respiratory Diseases ◽  
Adults And Children ◽  
Specialized Institutions ◽  
The Impact

A virus of the SARS family was incubated in late 2019 in Wuhan City, Hubei Province, China (Munster et al., 2020, p. 1); in early 2020 the virus spread beyond Asia (Ahani & Nilashi, 2020), its epicenter of origin, and is now found in 173 countries (Dong et al., 2020) (Coronavirus Update (Live), 2020); declared a pandemic by the WHO in March 2020 (Adhanom, 2020), the virus has a mortality rate of 3% (Biscayart et al., 2020), mainly affecting older adults and children with a predisposition to acute respiratory diseases, diabetes and hypertension. (Yang et al., 2020, p. 6) The response of governments to this crisis was mostly to temporarily close their air and sea ports and borders (Yang et al., 2020, p. 10), to declare quarantine and in some cases to enact a state of emergency (Sohrabi et al., 2020) in order to mitigate the infection, which has affected the economy of developed countries and emerging economies (Arshad Ali et al., 2020) (McCloskey & Heymann, 2020) (Rosas Gonzalez, 2020) (Ahani& Nilashi, 2020) (Ayittey et al., 2020) (Economics, 2020), specifically to economic agents, such as companies, consumers, producers, exporters, investors, government entities, and their behavior developed in the face of this disruptive environment resulting from the Asian virus is the subject of this article. The methodology used is one of documentary review and compiles selected research literature and current financial and economic reports on the impact of the virus in a macro context and explores the different forecasts of specialized institutions in the world economy regarding the actions taken by governments. The document shows interest in the economic consequences of the impact of the pandemic and serves as a support to promote future actions to mitigate the effects of the post-crisis.

The Role of Threat and Economic Uncertainty in Support for Scottish Independence

2014 ◽  
Vol 23 (1) ◽  
pp. 103-124 ◽  
Author(s):  
Daniel Kopasker
Keyword(s):  
Economic Consequences ◽  
Perceived Threat ◽  
Constitutional Change ◽  
Lack Of Information ◽  
Economic Expectations ◽  
Scottish Independence ◽  
The Individual ◽  
The Impact ◽  
Levels Of Support

Existing research has consistently shown that perceptions of the potential economic consequences of Scottish independence are vital to levels of support for constitutional change. This paper attempts to investigate the mechanism by which expectations of the economic consequences of independence are formed. A hypothesised causal micro-level mechanism is tested that relates constitutional preferences to the existing skill investments of the individual. Evidence is presented that larger skill investments are associated with a greater likelihood of perceiving economic threats from independence. Additionally, greater perceived threat results in lower support for independence. The impact of uncertainty on both positive and negative economic expectations is also examined. While uncertainty has little effect on negative expectations, it significantly reduces the likelihood of those with positive expectations supporting independence. Overall, it appears that a general economy-wide threat is most significant, and it is conjectured that this stems a lack of information on macroeconomic governance credentials.

The economic consequences of voluntary environmental reporting on shareholder wealth

2006 ◽  
Vol 3 (2) ◽  
pp. 1 ◽  
Author(s):  
Ruslaina Yusoff ◽  
Shariful Amran Abd Rahman ◽  
Wan Nazihah Wan Mohamed
Keyword(s):  
Abnormal Return ◽  
Listed Companies ◽  
Shareholder Wealth ◽  
Environmental Information ◽  
Economic Consequences ◽  
Share Price ◽  
Cumulative Abnormal Return ◽  
Environmental Reporting ◽  
Financial Report ◽  
Significant Difference

This study was carried out to examine the economic consequences ofvoluntary environmental reporting on shareholders' wealth among Malaysian Listed Companies that voluntarily disclosed environmental information in their financial report. One hundred andfifty two (152) companies of Bursa Malaysia (MSE) had been identified as a sample in the current study. Seventy six (76) companies were classified as environmental reporting companies while the remaining companies were classified as non-environmental reporting companies. The classification was done in order to determine the differences between share price, profitability and market equity for both types of companies. The study hypothesizes that voluntary environmental reporting leads to an improvement in the shareholders wealth. However, the results show that there is no significant difference between cumulative abnormal return for environmental and non-environmental reporting companies. Based on the results obtained, it can also be concluded that profitability and size of the companies do not have any significant roles in deciding whether or not to produce environmental reporting companies.

Pound Wise and Penny Foolish? Weight Loss and The Dynamics of Health Care Spending

2011 ◽  
Vol 14 (2) ◽  
Author(s):  
Thomas G Koch
Keyword(s):  
Weight Loss ◽  
Cost Savings ◽  
Cost Effective ◽  
Economic Consequences ◽  
Health Care Spending ◽  
Order Of Magnitude ◽  
Dynamic Measures ◽  
The Cost ◽  
The Impact ◽  
The Relationship

Current estimates of obesity costs ignore the impact of future weight loss and gain, and may either over or underestimate economic consequences of weight loss. In light of this, I construct static and dynamic measures of medical costs associated with body mass index (BMI), to be balanced against the cost of one-time interventions. This study finds that ignoring the implications of weight loss and gain over time overstates the medical-cost savings of such interventions by an order of magnitude. When the relationship between spending and age is allowed to vary, weight-loss attempts appear to be cost-effective starting and ending with middle age. Some interventions recently proven to decrease weight may also be cost-effective.

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