The Adoption of Deferred Share Unit Plans for Outside Directors and Shareholder Wealth

In this study, we examine how multiple directorships held by outside directors (busy outside directors) influence shareholder wealth in diversifying acquisitions. With a sample of 893 diversifying acquisitions from 1998 to 2004, we find a negative (positive) busy-director effect for diversifying acquisitions of public-targets (private-targets). Busy directors are negatively (positively) associated with the five-day cumulative abnormal returns in acquisitions involving public (private) targets, where merger-related agency problems are more likely. Our evidence support the notion that, in the case of diversifying acquisitions, increased managerial monitoring plays a more important role versus enhanced advising and business connection from busy directors.

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Outside directors, board independence, and shareholder wealth

Journal of Financial Economics ◽

10.1016/0304-405x(90)90002-h ◽

1990 ◽

Vol 26 (2) ◽

pp. 175-191 ◽

Cited By ~ 1031

Author(s):

Stuart Rosenstein ◽

Jeffrey G Wyatt

Keyword(s):

Shareholder Wealth ◽

Board Independence ◽

Outside Directors

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The economic consequences of voluntary environmental reporting on shareholder wealth

Social and Management Research Journal ◽

10.24191/smrj.v3i2.5110 ◽

2006 ◽

Vol 3 (2) ◽

pp. 1 ◽

Cited By ~ 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.

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