scholarly journals Long-term underperformance of public versus rights offering firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ju Hyun Kim ◽  
Kyojik Song
Keyword(s):  
Stock Returns ◽  
Operating Performance ◽  
Theoretical Models ◽  
Seasoned Equity Offering ◽  
Rights Offering ◽  
Public Offering ◽  
Rights Issue ◽  
Public Offer ◽  
Equity Offering

The authors compare the post-issue stock and operating performance of rights issue versus public offer firms using Korean data. The authors find that the stock returns of rights issue firms are less negative than those of public offering firms during the three years subsequent to the seasoned equity offering. The authors further find that the profitability of rights offering firms is superior to those of public offering firms and that the ratio of sales to assets for rights issue firms is much higher over the post-issue period. The results substantiate Heinkel and Schwartz’s (1986) and Eckbo and Masulis’ (1992) theoretical models that posit firms with better quality tend to select the rights issue rather than public offer method when issuing seasoned equity.

scholarly journals Institutional Investors and Hedge Fund Activism

2020 ◽  
Author(s):  
Simi Kedia ◽  
Laura Starks ◽  
Xianjue Wang
Keyword(s):  
Stock Returns ◽  
Institutional Investors ◽  
Operating Performance ◽  
Hedge Fund ◽  
Target Firms ◽  
Hedge Fund Activism ◽  
Institutional Shareholders

Abstract Hedge fund activists have ambiguous relationships with the institutional shareholders in their target firms. While some support their activities, others counter their actions. Due to their relatively small holdings in target firms, activists typically need the cooperation of other institutional shareholders that are willing to influence the activists’ campaign success. We find the presence of “activism-friendly” institutions as owners is associated with an increased probability of being a target, higher long-term stock returns, and higher operating performance. Overall, we provide evidence suggesting the composition of a firm’s ownership has significant effects on hedge fund activists’ decisions and outcomes.

scholarly journals MANAJEMEN LABA, RETURN SAHAM, DAN KINERJA OPERASI SEBAGAI PEMODERASI

2017 ◽  
Vol 15 (2) ◽  
pp. 133
Author(s):  
Farid Addy Sumantri ◽  
Purnamawati .
Keyword(s):  
Earnings Management ◽  
Stock Returns ◽  
Initial Public Offering ◽  
Stock Return ◽  
Operating Performance ◽  
Abnormal Returns ◽  
Return On Assets ◽  
One Year ◽  
Public Offering ◽  
The Relationship

<p><em>The purpose of this study was to determine the indications of the practice of earnings management at the time of the IPO, one year after the IPO, and two years after the IPO. This study also examined the effect of earnings management on stock returns and operating performance in moderating the relationship between earnings management and stock returns.</em></p><p><em>The study sample comprised 33 firms that go public in the year 2007 to 2011 using a purposive sampling method. Earnings management is proxied by discretionary accruals using the Modified Jones Model, which used proxy for the stock return is cummulative abnormal returns (CAR), while for the company's operating performance used proxy for the return on assets (ROA).</em></p><p><em>The results showed that there were indications of earnings management at the time of the IPO, one year after the IPO, and two years after the IPO with a lower profit rate. No effect on earnings management is proxied by stock return cummulative abnormal returns (CAR). Operating performance of the company also can not moderate the relationship between earnings management with stock return.</em></p><p><em> </em></p><p><em>Keywords: Earning Management, Initial Public Offering, Cummulative Abnormal Return, </em><em>Return On Asset</em></p>

Earnings Management and IPO Anomalies—Evidence from Indian Stock Market

2021 ◽  
pp. 227853372199471
Author(s):  
Aprajita Pandey ◽  
J. K. Pattanayak
Keyword(s):  
Earnings Management ◽  
Stock Returns ◽  
Initial Public Offering ◽  
Public Offering ◽  
High Level ◽  
Long Term Performance ◽  
Indian Stock Market ◽  
Term Performance ◽  
The Relationship

This study examines the relationship between the extent of earnings management in a firm, the level of underpricing during an initial public offering (IPO), and their long-term performance. Earnings management has been acknowledged as a matter of concern during IPOs since long; however, its relationship with underpricing and long-term returns remained inconclusive in emerging markets like India. Using a sample of Indian IPO firms, this study finds that firms that manage accruals aggressively in the pre-IPO period have high initial returns and subsequently low stock returns in the post-IPO period. This study also observed that firms that have used abnormal accruals more conservatively while reporting earnings have better returns in the third year after IPO compared to the firms that reported more aggressively. The results are in consonance with the theory of information asymmetry and suggest that valuation of an IPO firm becomes ambiguous with high level of earnings management, which leads to higher underpricing.

Six Sigma, stock returns and operating performance

2017 ◽  
Vol 40 (3) ◽  
pp. 331-351 ◽  
Author(s):  
Bora Ozkan ◽  
J. Francisco Rubio ◽  
M. Kabir Hassan ◽  
James R. Davis
Keyword(s):  
Stock Returns ◽  
Six Sigma ◽  
Design Methodology ◽  
Operating Performance ◽  
Fortune 500 ◽  
Operational Performance ◽  
Content Type ◽  
Fortune 500 Companies ◽  
Negative Growth

Purpose This paper aims to expand the literature on financial and operational performance by analyzing the effects of undergoing through Six Sigma training. Design/methodology/approach The effects of implementing Six Sigma trainings is analyzed for 108 Fortune 500 companies. The authors estimate long-term stock returns and 14 financial ratios of Six Sigma companies, both pre- and post-adoption periods. Furthermore, The authors match the 108 companies by size and industry to 108 non-Six Sigma companies also within the Fortune 500. Findings Looking at long-term stock returns, the evidence shows that Six Sigma firms need at least four years before they start to outperform the controlling sample. Furthermore, looking at operational performance, unlike prior reported results, the authors find supporting, and more importantly, persisting statistical evidence that Six Sigma firms are less liquid and have a negative growth in staff levels in comparison to the matching firms. Social implications The findings of this suggest that if Six Sigma provides any value to the company, it comes at the expense of overloaded staff levels, as evidenced by the fact that Six Sigma firms have less growth in staff levels than the matching firms. Originality/value It is one of the first paper to thoroughly investigate the effects on both financial performance and operational performance of spending, sometimes billions of dollars, in Six Sigma training.

scholarly journals MANAJEMEN LABA, RETURN SAHAM, DAN KINERJA OPERASI SEBAGAI PEMODERASI

2017 ◽  
Vol 13 (2) ◽  
pp. 61 ◽  
Author(s):  
Farid Addy Sumantri ◽  
Purnamawati ,
Keyword(s):  
Earnings Management ◽  
Stock Returns ◽  
Initial Public Offering ◽  
Stock Return ◽  
Operating Performance ◽  
Abnormal Returns ◽  
Return On Assets ◽  
One Year ◽  
Public Offering ◽  
The Relationship

<p>The purpose of this study was to determine the indications of the practice of earnings<br />management at the time of the IPO, one year after the IPO, and two years after the<br />IPO. This study also examined the effect of earnings management on stock returns<br />and operating performance in moderating the relationship between earnings<br />management and stock returns.<br />The study sample comprised 33 firms that go public in the year 2007 to 2011 using<br />a purposive sampling method. Earnings management is proxied by discretionary<br />accruals using the Modified Jones Model, which used proxy for the stock return is<br />cummulative abnormal returns (CAR), while for the company’s operating<br />performance used proxy for the return on assets (ROA).<br />The results showed that there were indications of earnings management at the time<br />of the IPO, one year after the IPO, and two years after the IPO with a lower profit<br />rate. No effect on earnings management is proxied by stock return cummulative<br />abnormal returns (CAR). Operating performance of the company also can not<br />moderate the relationship between earnings management with stock return.<br />Keywords: Earning Management, Initial Public Offering, Cummulative Abnormal<br />Return, Return On Asset</p>

An Examination of Long-Term Abnormal Stock Returns and Operating Performance Following R&D Increases

2004 ◽  
Vol 59 (2) ◽  
pp. 623-650 ◽  
Author(s):  
Allan C. Eberhart ◽  
William F. Maxwell ◽  
Akhtar R. Siddique
Keyword(s):  
Stock Returns ◽  
Operating Performance ◽  
Abnormal Stock Returns

Emotion Dysregulation in Autism Spectrum Disorder

2018 ◽  
pp. 282-298
Author(s):  
Emily Neuhaus
Keyword(s):  
Autism Spectrum Disorder ◽  
Social Communication ◽  
Educational Outcomes ◽  
Emotion Dysregulation ◽  
Research Priorities ◽  
Theoretical Models ◽  
Autism Spectrum ◽  
Repetitive Behaviors ◽  
Spectrum Disorder

Autism spectrum disorder (ASD) is defined by deficits in social communication and interaction, and restricted and repetitive behaviors and interests. Although current diagnostic conceptualizations of ASD do not include emotional difficulties as core deficits, the disorder is associated with emotion dysregulation across the lifespan, with considerable implications for long-term psychological, social, and educational outcomes. The overarching goal of this chapter is to integrate existing knowledge of emotion dysregulation in ASD and identify areas for further investigation. The chapter reviews the prevalence and expressions of emotion dysregulation in ASD, discusses emerging theoretical models that frame emotion dysregulation as an inherent (rather than associated) feature of ASD, presents neurobiological findings and mechanisms related to emotion dysregulation in ASD, and identifies continuing controversies and resulting research priorities.

scholarly journals We’re Not That Choosy: Emerging Evidence of a Progression Bias in Romantic Relationships

2021 ◽  
pp. 108886832110258
Author(s):  
Samantha Joel ◽  
Geoff MacDonald
Keyword(s):  
Romantic Relationships ◽  
Mate Selection ◽  
Theoretical Models ◽  
Romantic Partners ◽  
Test Phase ◽  
Relationship Development ◽  
Cultural Narrative ◽  
Relationship Initiation ◽  
Relationship Decisions

Dating is widely thought of as a test phase for romantic relationships, during which new romantic partners carefully evaluate each other for long-term fit. However, this cultural narrative assumes that people are well equipped to reject poorly suited partners. In this article, we argue that humans are biased toward pro-relationship decisions—decisions that favor the initiation, advancement, and maintenance of romantic relationships. We first review evidence for a progression bias in the context of relationship initiation, investment, and breakup decisions. We next consider possible theoretical underpinnings—both evolutionary and cultural—that may explain why getting into a relationship is often easier than getting out of one, and why being in a less desirable relationship is often preferred over being in no relationship at all. We discuss potential boundary conditions that the phenomenon may have, as well as its implications for existing theoretical models of mate selection and relationship development.

scholarly journals French Firms and COVID-19: Do the Debt Status, Crisis Management System, and Monetary Policy Play a Role?

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Mina Sami
Keyword(s):  
Monetary Policy ◽  
Stock Returns ◽  
Crisis Management ◽  
Management System ◽  
Daily Growth ◽  
Listed Firms ◽  
Study Results ◽  
Major Outbreak

Abstract This study has two main objectives: first, it assesses the effect of outbreak pandemic diseases on the French firms’ stock returns by considering the sector of activity as the main center of analysis. Second, it investigates the role of the crisis management system, firm debt strategy, and monetary policy in dealing with the adverse shocks of the major outbreak of the COVID-19. The study results can be summarized as follows: (1) the daily growth in COVID-19 cases and deaths are associated with lower stock returns of the listed firms, especially for the firms operating in the energy, industrial and health care sectors. In contrast, telecommunication and consumer sectors are not significantly affected. (2) The pandemic’s adverse effect is much more tolerant with the French firms with an efficient crisis management system and low long-term debt commitments than the firms that do not have such a system and engaged with long term debts. (3) Euribor rates and monetary policy are still playing an essential role during the pandemic period.

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