Frenemies: Corporate Advertising Under Common Ownership

2021 ◽  
Author(s):  
Ruichang Lu ◽  
Qiaowei Shen ◽  
Tenghui Wang ◽  
Xiaojun Zhang
Keyword(s):  
Ownership Structure ◽  
Mutual Fund ◽  
Advertising Expenditure ◽  
Exogenous Shock ◽  
Advertising Intensity ◽  
Corporate Advertising ◽  
Common Ownership ◽  
Coordination Costs ◽  
Fund Mergers ◽  
The Impact

In this paper, we investigate the impact of ownership structure on corporate advertising expenditures. Using mutual fund mergers as an exogenous shock to ownership structure, we find that competing firms owned by the same institutional blockholders experience a significant reduction in advertising expenditure. The reduction in advertising expenditure is more likely to occur in the presence of higher coordination benefits or lower coordination costs. Specifically, this effect is more pronounced for firms in more competitive industries, in higher advertising-intensity industries, with greater common ownership, with more concentrated institutional ownership, and with headquarters located in the same state. Overall, our empirical evidence indicates that ownership by common institutional investors significantly affects corporate advertising strategy. This paper was accepted by Matthew Shum, marketing.

The impact of CEO pay and its disclosure on stock price crash risk: evidence from China

2019 ◽  
Vol 9 (4) ◽  
pp. 479-497 ◽  
Author(s):  
Jiahua Xu ◽  
Lan Zou
Keyword(s):  
Ownership Structure ◽  
Mutual Fund ◽  
Stock Price ◽  
Crash Risk ◽  
Content Type ◽  
Concentrated Ownership ◽  
Strong Indicator ◽  
Ceo Pay ◽  
The Stability ◽  
The Impact

Purpose The purpose of this paper is to investigate whether CEO pay is related to stock price crash risk, and how ownership concentration mediates this relationship. Design/methodology/approach The authors hypothesize that companies who disclose CEO pay would experience lower stock price crash risk than their non-transparent peers. For companies whose CEO pay is published, the authors conjecture that the CEO pay slice is positively related to stock price crash risk. The authors also investigate whether the impact of CEO pay on crash risk would be weaker or stronger under a concentrated ownership structure and a mutual fund ownership structure. This study relies on 14,499 firm-year observations from the Chinese capital market to shed light on these questions. Findings The authors demonstrate that the magnitude of CEO pay slice has little effect on stock price crash risk. However, whether CEO pay is disclosed at all is a strong indicator for stock price crash risk. Originality/value The paper expands on the literature by adding a new factor to explain the stock price crash risk, which is vital to investor protection and the stability of the financial market. The research also adds to the sparse literature on CEO centrality and has implications for corporate governance and public policy.

Mutual Fund Herding and the Impact on Stock Prices

CFA Digest ◽  
1999 ◽  
Vol 29 (4) ◽  
pp. 48-49
Author(s):  
H. Kent Baker
Keyword(s):  
Mutual Fund ◽  
Stock Prices ◽  
The Impact

PENGARUH FAMILY OWNERSHIP, PERUBAHAN TARIF PAJAK DAN KEBIJAKAN HUTANG TERHADAP NILAI PERUSAHAAN

2017 ◽  
Vol 9 (2) ◽  
Author(s):  
Elfina Astrella Sambuaga
Keyword(s):  
Ownership Structure ◽  
Tax Reform ◽  
Stock Exchange ◽  
Family Ownership ◽  
Corporate Debt ◽  
Tax Rates ◽  
Manufacturing Companies ◽  
The Impact ◽  
The Relationship ◽  
Debt Policy

<p>This study aims to provide empirical evidence related to the influence of family ownership, tax reform on corporate debt policy, and further prove the impact on the firm value.This study examined the effect of changes in tax rates in 2009 and 2010 on the relationship between family ownership structure and corporate debt policy. The population of this research is manufacturing companies listed in Indonesia Stock Exchange for 8 consecutive years (2006-2013), with the period of observation for 7 years (2007-2013). A period of 8 years was taken to see a company that is consistently listed on the Stock Exchange prior to the end of the observation period. The result of this study shows that tax reform from progressive tax rates to a flat rate does not affect the relationship between family ownership structure and corporate debt policy. In contrast to the year 2009, changing rate from 28% to 25% in late 2010 was a significant effect on the debt policy with the company of family ownership. Based on the results, it was found that family ownership and debt policy significantly affect the company's enterprise value. It can be concluded, the higher the family ownership, the company's value would be diminished. Instead, the company's value will increase when the company adds to its debt policy.</p><p>Keywords : debt policy, family ownership, firm value, tax reform.</p>

The Impact of Benchmark Choice on US Mutual Fund Benchmark-Adjusted Performance and Ranking

2017 ◽  
Author(s):  
Irina Bezhentseva Mateus ◽  
Cesario Mateus ◽  
Natasa Todorovic
Keyword(s):  
Mutual Fund ◽  
The Impact

A Study on Investment Decision of Investors With Reference to Penetration of Mutual Funds in India

2016 ◽  
Vol 5 (2) ◽  
Author(s):  
Ratish C Gupta ◽  
Dr. Manish Mittal
Keyword(s):  
Decision Making ◽  
Real Estate ◽  
Mutual Funds ◽  
Capital Markets ◽  
Mutual Fund ◽  
Financial Services ◽  
Investment Decision ◽  
Fund Industry ◽  
Mutual Fund Industry ◽  
The Impact

The Indian mutual fund industry is one of the fastest growing and most competitive segments of the financial sector. The extent of under-penetration in the market is a sore point with the financial services industry, with a large amount of savings being channelized into fixed deposits, gold and real estate rather than the capital markets. The mutual fund industry is yet to spread its reach beyond Tier I cities. The top fifteen cities contribute to 85% of the pie, with the remaining 15% distributed among other cities. The study seeks to determine the impact of decision making of investors on current situation of mutual fund industry.

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