scholarly journals INFLUENCE OF MANAGEMENT ON DEBT CORPORATE POLICY

2021 ◽  
Vol 11 (3) ◽  
pp. 316-323
Author(s):  
S. I. Lutsenko
Keyword(s):  
Complete Information ◽  
External Source ◽  
Share Price ◽  
Financial Policy ◽  
Negative Effects ◽  
Economic Interests ◽  
Public Companies ◽  
Dividend Payments ◽  
Investment Resource ◽  
Precautionary Motive

The author considers features of influence of finance solutions of management of the Russian public companies on debt policy. In a research are included indicators of internal growth and dividend payments by means of which it is possible to estimate corporate financial policy. Internal growth is the indicator of regulation of debt strategy, the including mechanism of precautionary motive. The dependence of the share price on the market value of assets defines installation of communication between the economic interests of shareholders and finance solutions of management. The indicator of dividend payments allows to estimate influence of external negative effects (shocks) on behavior of investors at profit assessment. Increase in dividend payments is connected with their financing from an external source. Management works in logic of precautionary motive, keeping a part of profit for further debt repayment before creditors. The management of the Russian companies not only influences the share price, but also regulates the level of a debt load. The company can use dividend payments on reinvestment of assets (as an investment resource). The author shows as the Russian public companies, solve a problem of adverse selection, switching to cheaper financing sources. The value of a debt is connected with the level of investment into the company. Pledge (property providing) is a guarantee for creditors. As, getting access to debt financing, the company provides to the creditor the complete information about property, thereby, reducing the risks connected with attraction of a debt. The Russian public companies react to changes of debt increase in value of size of assets that will be approved with recapitalization of the company (change of the capital structure due to debt increase and its use for dividend payouts to shareholders).

scholarly journals EFFICIENCY EVALUATION OF ACTIVITY OF THE RUSSIAN PUBLIC COMPANIES IN THE CONDITIONS OF ACTIVE REGULATION OF OPERATING COSTS AND EXTERNAL EFFECTS (SHOCKS)

2021 ◽  
Vol 12 (2) ◽  
pp. 150-156
Author(s):  
S. I. Lutsenko
Keyword(s):  
Capital Structure ◽  
Adjustment Costs ◽  
Cash Flows ◽  
Operating Costs ◽  
Financial Policy ◽  
Public Companies ◽  
Active Regulation ◽  
Internal Financing ◽  
Precautionary Motive ◽  
The Capital Structure

The author considers influences of active regulation of operating costs and negative effects (shocks) on financial policy of the Russian public companies. The Russian firms make the choice for benefit of internal financing for the purpose of increase in the corporate benefit in the conditions of external financial restrictions (sectoral sanctions). Growth of the corporate benefit leads to increment of company assets and respectively to welfare of the shareholder. The Russian public companies will review the capital structure in the conditions of growth of adjustment costs. The active policy of the Russian companies is connected with availability of sufficient size of assets which are source of mortgage providing for regulation of capital structure. Thereby, the organization solves problem of adverse selection – financing source selection taking into account its price. The companies are forced to regulate actively the capital structure in the conditions of growth of operating costs and negative shocks. Regulation of capital structure is connected with the aspiration of the company to keep part of debt for its use as financing source. Operating costs are the indicator estimating efficiency of management decisions. The Russian companies will finance the investments, first of all, by internal financing sources. Cash flows are the resource servicing the investment capital. The firms will be attracted the loan capital in the period of deficit of cash flow. The Russian companies will work in logic of precautionary motive, creating monetary stock in the conditions of shocks. The precautionary motive is the protective buffer from negative impacts from the capital markets. Low values of cash flows allow to limit the management concerning his illegal behavior – decision making in private interests.

scholarly journals The influence of conference calls’ semantic characteristics on the company market performance: Text analysis

2019 ◽  
Vol 5 (3) ◽  
pp. 297-320
Author(s):  
Elena Fyodorova ◽  
Ruslan Sayakhov ◽  
Igor Demin ◽  
Dmitriy Afanasyev
Keyword(s):  
Stock Returns ◽  
Semantic Analysis ◽  
Share Price ◽  
Stock Exchanges ◽  
Annual Conference ◽  
Company Performance ◽  
Conference Calls ◽  
Conference Call ◽  
Public Companies ◽  
Corporate Social

The purpose of the study is to find out the influence of semantic (emotional coloring, length and complexity of the text) and thematic features (environmental, corporate-social and legal context) of conference calls with market analysts and investors on future company performance (CAR) and analysts’ recommendation for the share. The empirical framework of the research includes annual conference calls of public companies on the Moscow (MOEX) and London Stock Exchanges (LSE) from 2015 to 2019. The research methodology is based on the semantic analysis of the call text by using the linguistic dictionaries NRC 2010 and Corporate Social Responsibility 2016. The results of the study illustrate the significant impact of textual features of the conference call (the general tone of the call, the tone of management and the negative tone of analysts, the length and complexity of the text) on the abnormal stock returns (for 3, 14, 30 days). This relation is consistent for companies of both stock exchanges, but diverges in terms of the influence of the thematic characteristics of the call that can be explained by the mandatory disclosure of this information by European public companies (ESG Reports), as opposed to voluntary publication by Russian companies. The results can be applied both by the management of public companies in order to improve companies’ attractiveness (perception and transparency) and its market value in the short and medium-term period, and by investors to manage effectively the portfolio by predicting the future dynamics of the company’s share price after a conference call based on semantic tone and thematic features.

Impact of the Menu Labeling Act Upon the Market Value of Foodservice Firms

2020 ◽  
pp. 109634802097101
Author(s):  
Eojina Kim ◽  
Juan Luis Nicolau
Keyword(s):  
Service Industry ◽  
Food Service ◽  
Market Value ◽  
The United States ◽  
Share Price ◽  
Negative Effects ◽  
Menu Labeling ◽  
Positive Effects ◽  
Restaurant Firms ◽  
The Impact

The Menu Labeling Act (MLA), which requires restaurants to provide customers with nutritional information, has encountered implementation difficulties for more than 8 years, owing to the imposition of administrative costs on restaurant firms. By investigating the market value of 46 restaurant firms that publicly trade in the United States, this research analyzes the impact of MLA-related announcements on the market value of foodservice firms. Announcements associated with restrictions tend to reduce restaurant market value by 0.29% per day (market value is defined as the number of shares times the share price), whereas announcements related to flexibility increase such market value by 0.80%. The final guideline and compliance date announced by the Food and Drug Administration has provoked significant negative effects on restaurant market value. Meanwhile, the congress’ proposed opposition act has elicited great positive effects. This study provides important implications for policy makers and practitioners in the food service industry.

Extraterritoriality of Capital: Regional Dimension

Upravlenie ◽  
10.12737/2822 ◽  
2014 ◽  
Vol 2 (1) ◽  
pp. 73-77
Author(s):  
Цветков ◽  
Valyeriy TSvyetkov
Keyword(s):  
System Development ◽  
Regional Level ◽  
Negative Effects ◽  
Economic Interests ◽  
Financial Flows ◽  
Big Business ◽  
The Social ◽  
Social And Economic Development ◽  
Territorial Integration ◽  
Regional Interests

The paper concerns the analysis of big business activities at the regional level. Such analysis is important due the fact, that in order optimize costs, big business uses to refocus financial flows in detrimental to the regional interests ways. For this purpose regional specifics of corporate structures building are examined in details, particularly creation of holding structures and different emerging forms of cross-territorial integration. Corporate property transformation results in emerging of two major types of corporations, quite different in their impact on regional economic system development: regional (or territorial) corporations, integrated in the inner environment of the territory of activity; vertically integrated corporations, which usually integrate various territorial resources in corporate economic turnover with no concern for economic interests of the territory, where they operate. Main stages of the Russian big business evolution are considered and creation of holdings is described. Also considered are the issue of extraterritoriality of capital, impact of verticallyintegrated corporations on the social and economic development of the region of activity, ways to overcome negative effects of vertically-integrated corporations on the regional level.

SOX 404(b) exemption effects on auditor changes

2016 ◽  
Vol 31 (4/5) ◽  
pp. 387-402 ◽  
Author(s):  
Benjamin W. Hoffman ◽  
Albert L. Nagy
Keyword(s):  
Positive Association ◽  
Negative Effects ◽  
Significant Positive Association ◽  
Public Companies ◽  
Content Type ◽  
Sarbanes Oxley ◽  
Sensitivity Tests ◽  
Prior Literature ◽  
Pros And Cons ◽  
Practical Implications

Purpose This paper aims to investigate whether the Sarbanes-Oxley Act: Section 404(b) exemption caused an increase in auditor changes due to changes in expectations for both auditors and their clients. Design/methodology/approach This paper predicts that this exemption caused a significant amount of auditor changes post-exemption, due to a change in expected future economic rents (audit scope demands) for auditors (clients). Logistic regression analysis is used to examine whether auditor changes increased for non-accelerated filers (public companies with less than $75 million in public float), who were affected by this exemption, compared to auditor changes for accelerated filers (public companies with greater than $75 million in public float), who were not affected by this exemption. Findings The results show a significant positive association between the exemption and auditor dismissals for non-accelerated filers compared to that of accelerated filers. This finding is robust when sensitivity tests are used. Practical implications Prior literature finds that an increase in auditor changes can have various positive and negative effects on the affected companies. Thus, investors will be interested in the results of this paper when making their investment decisions with regard to non-accelerated filers. Social implications The results of this paper will aid policymakers as they consider the pros and cons of this exemption, as it pertains to the affected companies. Originality/value This paper is the first to study the effects of this exemption on auditor turnover for the affected companies.

BANKS' PRECAUTIONARY CAPITAL AND CREDIT CRUNCHES

2013 ◽  
Vol 18 (8) ◽  
pp. 1726-1750 ◽  
Author(s):  
Fabián Valencia
Keyword(s):  
Interest Rate ◽  
Financial Frictions ◽  
Balance Sheet ◽  
Bank Lending ◽  
Share Price ◽  
Volatility Clustering ◽  
Asymmetric Response ◽  
Precautionary Motive ◽  
Nonlinear Nature ◽  
Negative Shock

This paper develops a bank model to study supply-driven contractions in credit or credit crunches. In the model, the bank is affected by financial frictions in raising external funds. These frictions imply that the bank repairs its balance sheet only gradually following a negative shock that weakens the bank's capital position. Consequently, there is persistency in the response of bank lending even when the original shock (productivity or interest rate) is i.i.d. The nonlinear nature of these financial frictions also generates (i) a precautionary motive even with risk-neutral shareholders: the bank increases its desired level of capital if risk increases; (ii) an asymmetric response of lending: negative disturbances can have a bigger impact than positive ones; and (iii) volatility clustering in risk spreads and the bank's share price.

scholarly journals Relevancy of Corporate Financial Policies and the Profit Maximization View of Islamic Banks

2012 ◽  
Vol 3 (6) ◽  
pp. 184-193 ◽  
Author(s):  
John Taskinsoy
Keyword(s):  
Agency Theory ◽  
Profit Maximization ◽  
Share Price ◽  
Financial Policy ◽  
Islamic Banks ◽  
Short Term ◽  
Financial Policies ◽  
Policy Conflicts ◽  
Banking Institutions ◽  
Controversial Nature

This paper examines relevancy of corporate financial policies and documents similarities and/or differences of how profit maximization goal is viewed by Islamic banking institutions (IBIs). Management of the firm is ultimately responsible for maximizing profits and increasing shareholder value, however this challenging task may get plagued by agency problems as well corporate financial policy conflicts. Agency problem is real and it is assumed to occur in most companies worldwide. However, the theory’s controversial nature and its narrow focus have not really convinced many scholars whether agency theory in fact provides any broad benefits to firm’s stakeholders or not. Scholars seem to be divided into two camps on agency theory. Some authors think that agency theory pays too much attention to short-term goal of share price valuation and it hardly provides any real answers to firm’s real problems. On the other hand, some proponents of this theory believe agency theory’s useful impact on capital markets.

scholarly journals Dividend policy and ownership structure: A study of Russian dual-class stock companies.

2017 ◽  
Vol 15 (1) ◽  
pp. 199-212 ◽  
Author(s):  
Irina Berezinets ◽  
Yulia Ilina ◽  
Liudmila Alekseeva
Keyword(s):  
Ownership Structure ◽  
Dividend Policy ◽  
Negative Relationship ◽  
Trading System ◽  
Public Companies ◽  
Dividend Payout ◽  
Dividend Payments ◽  
Dual Class Shares ◽  
Dual Class ◽  
The Relationship

This paper explores the relationship between ownership structure and dividend policy in Russian public companies with dual-class shares. The sample includes all companies issuing both ordinary (voting) and preferred (non-voting) shares traded on the Russian Trading System (RTS) in the period of 2003-2009. Using panel data and employing both linear and nonlinear regression modeling approach, we tested the relationship between ownership structure and dividend payout. One of the major conclusions is the existence of a negative relationship between the dividend payout on ordinary shares and institutional ownership, as well as between dividend payout on ordinary shares and offshore ownership. Unlike for ordinary shares, ownership structure is not related to dividend payments on preferred shares. Dividend policy on preferred shares is, instead, essentially related to a company’s performance.

scholarly journals Dividend tax, dividend payments and share values: a South African perspective

2014 ◽  
Vol 11 (3) ◽  
pp. 242-252 ◽  
Author(s):  
Me Stéfani Coetzee ◽  
Johannes de Wet
Keyword(s):  
South African ◽  
Share Price ◽  
Dividend Payment ◽  
Share Prices ◽  
Study Approach ◽  
Dividend Payments ◽  
African Perspective ◽  
The Impact ◽  
Dividend Tax ◽  
Payment Policies

The study investigates the impact of changes in dividend taxes on dividend payment policies and in turn, the impact of dividend payments on share prices. An event study approach is used to analyse the share price movements before, on and after dividend announcement dates. The results for companies of which the dividend paid resulted in an increase in the dividend payout ratio were that share prices responded positively to the announcement on the announcement date and for the few days thereafter. The findings again underline the paradoxical nature of dividends and although a better understanding of the impact of dividends on South African companies was gained, the dividend puzzle remains largely unsolved.

scholarly journals NILAI-NILAI FUNDAMENTAL DAN PENGARUHNYA TERHADAP BETA SAHAM SYARIAH PADA JAKARTA ISLAMIC INDEKS

2017 ◽  
Vol 13 (1) ◽  
pp. 40
Author(s):  
Fidiana Fidiana
Keyword(s):  
Regression Analysis ◽  
Multiple Regression Analysis ◽  
Significant Influence ◽  
Trading Volume ◽  
Share Price ◽  
Public Companies ◽  
Book Value ◽  
Earnings Per Share ◽  
Price Earnings Ratio ◽  
Analysis Models

The objective of this research is to examine influenced fundamental variables (leverage, earnings variability, accounting beta, earnings per share, price earnings ratio, price book value, dividend yield, and trading volume) on syariah stock beta as proxy of systematic risk. Samples used in this research are selected using purposive sampling from public companies of Jakarta Islamic Index (JII) from 2001-2005.The research tested hypotheses by using multiple regression analysis models. Based on model used, the results with F-test or ANOVA show that fundamental variable significant influence on syariah stock beta. The results also show that from the eight factors of fundamental variable assumed to influence on syariah stock beta, there are four factors which partially show significant influence consist of: leverage, earnings variability, price book value, and trading volume.

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