Do Antitakeover Provisions Spur Corporate Innovation? A Regression Discontinuity Analysis

2018 ◽  
Vol 53 (3) ◽  
pp. 1163-1194 ◽  
Author(s):  
Thomas J. Chemmanur ◽  
Xuan Tian
Keyword(s):  
Information Asymmetry ◽  
Firm Value ◽  
Regression Discontinuity ◽  
Causal Effect ◽  
Equity Markets ◽  
Short Term ◽  
Innovation Activities ◽  
Corporate Innovation ◽  
Positive Effect ◽  
Competitive Product

We study the effect of antitakeover provisions (ATPs) on innovation. To establish causality, we use a regression discontinuity approach that relies on locally exogenous variation generated by shareholder proposal votes. We find a positive, causal effect of ATPs on innovation. This positive effect is more pronounced in firms that are subject to a larger degree of information asymmetry and operate in more competitive product markets. The evidence suggests that ATPs help nurture innovation by insulating managers from short-term pressures arising from equity markets. Finally, the number of ATPs contributes positively to firm value for firms involved in intensive innovation activities.

scholarly journals Intellectual Capital Disclosure, Information Asymmetry, Cost of Capital, and Firm Value: Empirical Studies on Indonesian Manufacturers

2019 ◽  
Vol 2 (1) ◽  
pp. 27-35
Author(s):  
Nadya Gomes I. Gomes I. ◽  
Hatane Semuel ◽  
Devie D.
Keyword(s):  
Information Asymmetry ◽  
Intellectual Capital ◽  
Firm Value ◽  
Cost Of Capital ◽  
Weighted Average ◽  
Partial Least Square ◽  
Least Square ◽  
Separate Analysis ◽  
Negative Effect ◽  
Positive Effect

Signaling theory suggests that when high-quality entities signal their potentials such as intellectual capital to the market, its participants (e.g., investors) re-evaluate their worth and make informed decisions therefrom. This paper examines the consequences of intellectual capital disclosures with respect to firm value, information asymmetry, and cost of capital. Voluntary intellectual capital disclosure (ICD, measured in index) affects firm value (FV, measured in Tobin’s Q) through reducing both information asymmetry (IA, measured in bid-ask spread) and cost of capital (COC, measured in weighted average cost of capital). 67 Indonesian manufacturers were purposively selected whose financial reports published in Indonesian Stock Exchange official website and Bloomberg provide the data for the research. A research model is estimated to the data through a partial least square analysis. Results provides substantial evidence on the positive effect of ICD on FV and negative effect on IA; negative effect of IA on FV; negative effect of COC on FV; and positive effect of IA on COC. On a separate analysis, IA is shown to significantly mediate the relationship between ICD and FV.

scholarly journals The Dynamic Electoral Returns of a Large Anti-Poverty Program

2020 ◽  
pp. 1-45 ◽  
Author(s):  
Laura Zimmermann
Keyword(s):  
Regression Discontinuity ◽  
Causal Effect ◽  
Short Term ◽  
Implementation Quality ◽  
Electoral Support ◽  
Poverty Program ◽  
Plausible Mechanism ◽  
The Government ◽  
Election Strategies

Short-term re-election strategies are widely used by governments around the world. This is problematic if governments can maximize their re-election chances by prioritizing short-term spending before an election over long-term reforms. This paper tests whether longer program exposure has a causal effect on election outcomes in the context of a large anti-poverty program in India. Using a regression-discontinuity framework, the results show that length of program exposure lowers electoral support for the government. The paper discusses a couple of potential explanations, finding that the most plausible mechanism is that voters hold the government accountable for the program's implementation quality.

scholarly journals Designation as the Most Admired Firms to the Sustainable Management of Taxes: Evidence from South Korea

2021 ◽  
Vol 13 (14) ◽  
pp. 7994
Author(s):  
Jaehong Lee ◽  
Suyon Kim ◽  
Eunsoo Kim
Keyword(s):  
Information Asymmetry ◽  
Firm Value ◽  
Sustainable Management ◽  
Corporate Sustainability ◽  
Tax Avoidance ◽  
Information Environment ◽  
Tax Management ◽  
The Relationship ◽  
Positive Effect ◽  
High Information

This study examines whether the designation as the most admired firms affects firms’ tax management behavior. Based on 6880 Korean firms from 2014 to 2018, we regressed to analyze the relationship between the designation as the most admired firms and tax avoidance. Designation as the most admired firm is considered to result in a high reputation, and reputation is one of the intangible assets when assessing the firm value. We found that the firms designated as the most admired firms are reluctant to avoid taxes. Reputable firms are expected to be consistent with their fame. Therefore, those firms are less engaged in unethical or immoral tax avoidance. We also found a positive effect of the index for environmental, social, and governance on the relationship between the designation as the most admired firms and tax avoidance. Environmental, social, and governance activities are the managements’ choice and are a part of corporate activities, whereas firms’ reputations result from enterprise-wide activities. The findings suggest that the designation as the most admired firms with regard to environmental, social, and governance activities is considered highly reputable and results in deciding to improve corporate sustainability in tax management. The relationship between the designation as the most admired firms and tax avoidance is strengthened in an information environment where the firms are Chaebol-affiliated and in high information asymmetry.

Board Networks and Corporate Innovation

2020 ◽  
Author(s):  
Ching-Hung Chang ◽  
Qingqing Wu
Keyword(s):  
Agency Problems ◽  
Positive Relation ◽  
Cross Sectional ◽  
External Finance ◽  
Innovation Activities ◽  
Corporate Innovation ◽  
Empirical Tests ◽  
Director Characteristics ◽  
Positive Effect ◽  
Board Networks

This paper studies whether board connectedness affects corporate innovation. We find that well-connected boards have a positive effect on innovation activities and quality. The effect is stronger when firms have higher demand for advising or face more severe agency problems. Firms with greater needs for external finance benefit more from board connections with bankers. We show that the positive relation is causal and robust based on a battery of empirical tests including exogenous variation in board connectedness resulting from death and retirement of directors and from a regulatory shock under new exchange listing rules. Evidence indicates that types and relatedness of connections as well as director characteristics contribute to cross-sectional heterogeneity of the positive effect. This paper was accepted by Gustavo Manso, finance.

scholarly journals The Effects of Knowledge Assets and Path Dependence in Innovations on Firm Value in the Korean Semiconductor Industry

2020 ◽  
Vol 12 (6) ◽  
pp. 2319
Author(s):  
Yoonkyo Cho
Keyword(s):  
Firm Value ◽  
High Performance ◽  
Path Dependence ◽  
Stock Exchange ◽  
Semiconductor Industry ◽  
Ordinary Least Squares ◽  
Short Term ◽  
Return On Assets ◽  
Knowledge Assets ◽  
Positive Effect

This study investigated whether firms’ knowledge assets and path dependence in their innovations affect firm value. For the analysis, I used 37 firms in the semiconductor industry in Korea. These firms were listed on the Korea Stock Exchange and the Korea Securities Dealers Association Automated Quotation as of 2010 and through 2015. The dependent variable was measured by return on assets as firm value, and the ordinary least squares estimation was used. The results showed that a firm’s knowledge assets have a positive effect on firm value. In addition, when a firm creates new knowledge, if the firm follows path dependence by using its own knowledge, it has a positive effect on firm value. By contrast, when a firm conducts innovations using knowledge created by other firms, it has no effect on the value of the firm. Additionally, I found that technological innovation based on knowledge assets and path dependence has a positive effect on firm value in the short term but has no effect in the medium term. Thus, firms need to continue their innovation to maintain their competitive advantage and to use their existing knowledge in innovation in order to have high performance.

Pengaruh Investasi Asset Jangka Pendek Dan Aktiva Terhadap Laba Usaha Pada Pt. Taspen (Persero)

2018 ◽  
Vol 1 (1) ◽  
pp. 21
Author(s):  
Ilyas Lamuda
Keyword(s):  
Return On Investment ◽  
Quantitative Methods ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Rate Of Return ◽  
Short Term ◽  
Descriptive Data ◽  
Short Term Investment ◽  
Accounting Rate ◽  
Positive Effect

This study was to determine the effect of Short-Term Investments and Assets Assets in generating profits in the company PT. Taspen. The method of analysis used qualitative methods That is explained and analyzed by descriptive data. Quantitative methods to study whether the Short-term investment is profitable or not, can be determined either by the method Accounting Rate Of Return (ARR) That method that measures the level of profit from investments used to gain tersebut.dan the return on investment assets at PT. Taspen. To test the hypothesis then performed calculations using multiple linear regression analysis. Furthermore pengelohan data and hypothesis testing will be assisted by a computer program Softwere SPSS (Statistical Service and Solution product).Research shows that variable Short Term Asset Investments concluded that simultaneous effect relationship is negative and insignificant. But in partial, it provides a significant and positive effect on earnings. Assets Investments variable and not significant positive effect on earnings, but in partial, it provides a significant and positive effect on earnings.

Analisis Pengaruh Kepemilikan Blockholder, Kepemilikan Manajerial, Kepemilikan Institusional, dan Komite Audit terhadap Nilai Perusahaan

2018 ◽  
Vol 2 (1) ◽  
pp. 96-121
Author(s):  
Iwan Wirawardhana ◽  
Meco Sitardja
Keyword(s):  
Firm Value ◽  
Audit Committee ◽  
Stock Exchange ◽  
Random Effect ◽  
Random Effect Model ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Estimation Model ◽  
Effect Model ◽  
Positive Effect

The aim of this study is to analyse the effect of Blockholder Ownership, Managerial Ownership,Institutional Ownership, and Audit Committee towards Firm Value. The background of this research isthe agency theory and ownership theory. The population in this study are 46 property companies listedon the Indonesia Stock Exchange (IDX) for the period 2012-2016. By using purposive samplingtechnique, 35 companies are qualified as data samples. This research uses the random effect model asthe estimation model and multiple regression as the method of analysis. The results of this study showsthat Institutional Ownership has a positive effect on Firm Value. Meanwhile, Blockholder Ownership,Managerial Ownership, and Audit Committee have no effect on Firm Value. Moreover, the F-testimplies that the variables, blockholder ownership, managerial ownership, institutional ownership, andaudit committee, simultaneously influence firm value.

scholarly journals Achieving Efficient and Stable Deammonification at LowTemperatures—Experimental and Modeling Studies

Energies ◽  
2021 ◽  
Vol 14 (13) ◽  
pp. 3961
Author(s):  
Hussein Al-Hazmi ◽  
Xi Lu ◽  
Dominika Grubba ◽  
Joanna Majtacz ◽  
Przemysław Kowal ◽  
...  
Keyword(s):  
Sequencing Batch Reactor ◽  
Energy Savings ◽  
Batch Reactor ◽  
Phase Changes ◽  
Intermittent Aeration ◽  
Short Term ◽  
Higher Temperature ◽  
Effects Of Temperature ◽  
The Mathematical Model ◽  
Positive Effect

The short-term effects of temperature on deammonification sludge were evaluated in a laboratory-scale sequencing batch reactor (SBR). Mathematical modeling was used for further evaluations of different intermittent aeration strategies for achieving high and stable deammonification performance at decreasing temperatures. As for the biomass cultivated at high temperatures (e.g., 30 °C), a higher temperature dependency (the adjusted Arrhenius coefficient θ for 11–17 °C = 1.71 vs. θ for 17–30 °C = 1.12) on the specific anammox growth rates was found at lower temperatures (11–17 °C) in comparison with higher temperatures (17–30 °C). Further evaluations of recovering the nitrogen removal efficiency at decreasing temperatures with the mathematical model by modifying the intermittent aeration strategies (aeration frequency (F) and the ratio (R) between non-aerated (non-aer) phase and aerated (aer) phase durations) indicated that intermittent aeration with a prolonged non-aerated phase (e.g., R ≥ 4 regardless of F value) would help to maintain high and stable deammonification performance (~80%) at decreasing temperatures (14–22 °C). Extending the non-aerated phases (increasing R) and reducing the frequency (F) of off/on phase changes have a positive effect on increasing energy savings, leading to increasing interest in this method.

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