Impact Of Changes In Strategic Investments On Shareholder Returns: The Role Of Growth Opportunities

2011 ◽  
Vol 19 (1) ◽  
Author(s):  
Ashay Desai ◽  
Peter Wright ◽  
Kee H. Chung ◽  
Charlie Charoenwong
Keyword(s):  
Investment Decisions ◽  
Empirical Support ◽  
Capital Investments ◽  
Font Size ◽  
Growth Opportunities ◽  
Shareholder Returns ◽  
Strategic Investments ◽  
Managerial Decisions ◽  
Growth Opportunity

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="font-family: &quot;Times New Roman&quot;,&quot;serif&quot;; font-size: 10pt;">We argue that a firm&rsquo;s growth opportunity may provide us with guidelines on whether increases or decreases in capital investments may contribute to that firm&rsquo;s returns to shareholders.<span style="mso-spacerun: yes;">&nbsp; </span>We find consistent empirical support for &ldquo;good&rdquo; managerial decisions.<span style="mso-spacerun: yes;">&nbsp; </span>That is, we find that increases in capital investments by firms with growth opportunities enhance their returns to shareholders.<span style="mso-spacerun: yes;">&nbsp; </span>The results indicate that decreases in strategic investments increase the returns to shareholders of those firms lacking in growth opportunities.<span style="mso-spacerun: yes;">&nbsp; </span>The findings, however, are not consonantally significant for &ldquo;bad&rdquo; managerial investment decisions - - decreases in investments by firms with growth opportunities or increases in investments by firms lacking in growth opportunities.</span></p>

scholarly journals PENGARUH GROWTH OPPORTUNITY, STRUKTUR MODAL DAN KEBIJAKAN DIVIDEN TERHADAP KEPUTUSAN INVESTASI PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA (BEI)

2020 ◽  
Vol 4 (2) ◽  
pp. 123
Author(s):  
Maria Karolina Kewa ◽  
Gendro Wiyono
Keyword(s):  
Capital Structure ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Investment Decisions ◽  
Secondary Data ◽  
Manufacturing Companies ◽  
Growth Opportunities ◽  
Growth Opportunity ◽  
The Social ◽  
Company Growth

This study aims to determine whether there is an influence of growth opportunities, capital structure and dividend policy on investment decisions in manufacturing companies in the consumer goods industry sector which are listed on the Indonesia Stock Exchange (IDX) during the 2015-2018 period. The factors tested are growth opportunities, capital structure and dividend policy and investment decisions. The data used in this study are secondary data and this study uses 18 samples of manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2015-2018 period. This study uses the Social Sciences Statistics Package (SPSS) version 17.0 to determine the results of the hypothesis. Tests using SPSS get results that show that: 1) growth opportunities have a positive and significant influence on investment decisions; 2) capital structure has a positive and significant effect on investment decisions; 3) dividend policy has a negative and significant effect on investment decisions; 4) growth opportunity variables (company growth opportunities, capital structure, dividend policy simultaneously influence investment decisions.Kata Kunci: Incentives, Employee Discipline

Real Effects of Tax Uncertainty: Evidence from Firm Capital Investments

2021 ◽  
Author(s):  
Martin Jacob ◽  
Kelly Wentland ◽  
Scott A. Wentland
Keyword(s):  
Policy Change ◽  
Accounting Information ◽  
Investment Decisions ◽  
Underlying Mechanism ◽  
Capital Investments ◽  
Growth Opportunities ◽  
Public Accounting ◽  
Real Effects ◽  
Hurdle Rate ◽  
Tax Uncertainty

This paper examines whether tax uncertainty can alter investment decisions, focusing primarily on the timing of large capital investments. Empirically, we exploit the staggered implementation of Schedule UTP, a discrete policy change expected to increase tax uncertainty, finding that, on average, firms responded by delaying large capital investments. This effect is stronger among firms at which the policy treatment is particularly germane, that is, for firms with more material UTBs or with low-to-moderate quality public accounting information. We also test the underlying mechanism, finding that managers buffer against higher tax uncertainty with cheaper sources of financing (cash) and that the investment effect is concentrated among financially constrained firms. The results show that Schedule UTP also reduces the sensitivity of investment to growth opportunities (investment-Q sensitivity) in line with a higher hurdle rate for firms facing higher tax uncertainty. This paper was accepted by Brian Bushee, accounting.

scholarly journals Pengaruh Growth Opportunity, Corporate Social Responsibility, Good Corporate Governance dan Keputusan Investasi terhadap Nilai Perusahaan (Studi Pada Perusahaan Sektor Property, Real Estate & Building Construction Periode 2013-2017)

2021 ◽  
Vol 9 (1) ◽  
pp. 333
Author(s):  
Muhammad Fariz Wiranoto
Keyword(s):  
Corporate Social Responsibility ◽  
Data Analysis ◽  
Social Responsibility ◽  
Audit Committee ◽  
Investment Decision ◽  
Investment Decisions ◽  
Managerial Ownership ◽  
Growth Opportunities ◽  
Growth Opportunity ◽  
Corporate Social

This study analyses influence growth opportunities, corporate social responsibility, managerial ownership, committee audit, and investment decision to the company property, real estate & buildings construction sector from 2013 to 2017. This research is quantitative, employing purposive sampling and obtaining samples from 49 companies. Technique analysis used is multiple regression by SPSS. The research results show that growth opportunities, corporate social responsibility, managerial ownership, committee audit, and investment decision have a significant influence on the company. Partial it shows that: 1) growth opportunities have a positive impact significantly on the company, based on the results of data analysis, the companies experiencing a decline and increasing growth opportunity are also proven to be followed by an increase and decrease in firm value or (PER). 2) corporate social responsibility does not have significantly on the company. Based on data analysis from 40 sample companies, only one company presents more than 50% GRI information. 3) Managerial ownership does not have significantly on the company. From the data analysis results, most companies do not have managerial ownership companies. 4) The audit committee has no significant effect on the company's value because an audit committee in the company is seen only as a fulfilment of the government's regulatory obligations. The audit committee has not carried out its obligations in a manner maximum. 5) Investment decisions significantly do not affect the company's value because most companies have not implemented meaningful investment decisions, as evidenced by a TAG value of less than 1.

Peran kepemilikan institusional, perencanaan pajak dan dewan komisaris asing terhadap nilai perusahaan

2019 ◽  
Vol 8 (2) ◽  
Author(s):  
Anita Ade Rahma ◽  
Lisa Nabawi ◽  
Ronni Andri Wijaya
Keyword(s):  
Significant Influence ◽  
Firm Value ◽  
Stock Exchange ◽  
Investment Decisions ◽  
Total Sample ◽  
Tax Planning ◽  
Purposive Sampling ◽  
Institutional Leadership ◽  
Company Value

The purpose of this study is to analyze the role of institutional leadership, tax planning and foreign board of commissioners on firm value. The population in this study were 615 companies listed on the Indonesia Stock Exchange in 2015-2017. The sample was chosen using purposive sampling to get a total sample of 325 companies with a total of 975 observations of company data. The results of this study indicate that institutional leadership and tax planning have no role in increasing company value. While the foreign board of commissioners showed a significant influence on the value of the company. This proves that there is a need for diversity in the structure of the board that can trigger an increase in the value of the company. In addition, the presence of a foreign board is needed for the progress of the companyKeywords: Investment decisions; funding decisions; dividend policy; company value

Ups and downs on the roller coaster of task conflict: the role of group cognitive complexity, collective emotional intelligence and team creativity

2020 ◽  
Vol 18 (1) ◽  
pp. 23-37
Author(s):  
Andreea Gheorghe ◽  
Oana Fodor ◽  
Anișoara Pavelea
Keyword(s):  
Emotional Intelligence ◽  
Cognitive Complexity ◽  
Empirical Support ◽  
Task Conflict ◽  
Team Creativity ◽  
Mediating Role ◽  
Low Levels ◽  
Explanatory Mechanism ◽  
The Relationship

This study explores the association between task conflict and team creativity and the role of group cognitive complexity (GCC) as a potential explanatory mechanism in a sample of 159 students organized in 49 groups. Moreover, we analyzed the moderating effect of collective emotional intelligence (CEI)in the relationship between task conflict and GCC.As hypothesized, we found that task conflict has a nonlinear relationship with GCC, but contrary to our expectations, it follows a U-shaped association, not an inversed U-shape. In addition,the moderating role of CEI was significant only at low levels. Contrary to our expectation, the mediating role of GCC did not receive empirical support. Theoretical and practical contributions are discussed.

The Affiliative Role of Empathy in Everyday Interpersonal Interactions

2019 ◽  
Author(s):  
Whitney R. Ringwald ◽  
Aidan G.C. Wright
Keyword(s):  
Individual Differences ◽  
Structural Equation ◽  
Community Sample ◽  
Empirical Support ◽  
Interpersonal Behavior ◽  
Equation Modeling ◽  
Experimental Conditions ◽  
Student Sample ◽  
Ecological Momentary

Empathy theoretically serves an affiliative interpersonal function by satisfying motives for intimacy and union with others. Accordingly, empathy is expected to vary depending on the situation. Inconsistent empirical support for empathy’s affiliative role may be due to methodology focused on individual differences in empathy or differences between controlled experimental conditions, which fail to capture its dynamic and interpersonal nature. To address these shortcomings, we used ecological momentary assessment to establish typical patterns of empathy across everyday interactions. Associations among empathy, affect, and interpersonal behavior of self and interaction partner were examined in a student sample (N=330), then replicated in a pre-registered community sample (N=279). Multi-level structural equation modeling was used to distinguish individual differences in empathy from interaction-level effects. Results show people are more empathetic during positively-valanced interactions with others perceived as warm and when expressing warmth. By confirming the typically affiliative role of empathy, existing research to the contrary can be best understood as exceptions to the norm.

Financing Energy Access in Africa

2018 ◽  
Author(s):  
Peter Kayode Oniemola ◽  
Jane Ezirigwe
Keyword(s):  
Oil And Gas ◽  
Sub Saharan Africa ◽  
Capital Investments ◽  
Energy Access ◽  
African Countries ◽  
Sustainable Technologies ◽  
Energy Technologies ◽  
Sub Saharan ◽  
Diesel Motors

To achieve universal energy access will attract huge capital investments. If sub-Saharan Africa is to realize anything close to the ambitious goals set for its energy access, then new actors, innovative funding mechanisms and sustainable technologies will have to be attracted. Finance is needed for activities such as rural electrification, clean cooking facilities, diesel motors and generators, other renewable energy technologies, oil and gas infrastructures, etc. Finance is also needed in research and development of suitable technologies and funding options as well as investment in the capacity to formulate and implement sound energy policies. This chapter examines the varied financing options for energy access in sub-Saharan Africa. It argues that with appropriate laws in place and effective mechanism for implementation, African countries can significantly engage private sector financing, international financial institutions and foreign donors. The role of the law here will be in creating an enabling environment for financing.

scholarly journals Political Institutions and Coups in Dictatorships

2021 ◽  
pp. 001041402199716
Author(s):  
Nam Kyu Kim ◽  
Jun Koga Sudduth
Keyword(s):  
Empirical Analysis ◽  
Political Institutions ◽  
Empirical Support ◽  
Democratic Institutions ◽  
The Creation

Does the creation of nominally democratic institutions help dictators stay in power by diminishing the risk of coups? We posit that the effectiveness of political institutions in deterring coups crucially depends on the types of plotters and their political goals. By providing a means to address the ruling coalition’s primary concerns about a dictator’s opportunism or incompetence, institutions reduce the necessity of reshuffling coups, in which the ruling coalition replaces an incumbent leader but keeps the regime intact. However, such institutions do not diminish the risk of regime-changing coups, because the plotters’ goals of overthrowing the entire regime and changing the group of ruling coalition are not achievable via activities within the institutions. Our empirical analysis provides strong empirical support for our expectations. Our findings highlight that the role of “democratic” institutions in deterring coups is rather limited as it only applies to less than 38% of coup attempts.

In retrospect: The influence of chief executive officers’ historical relative pay on overconfidence

2021 ◽  
pp. 147612702110048
Author(s):  
J Daniel Zyung ◽  
Wei Shi
Keyword(s):  
Chief Executive Officers ◽  
Empirical Support ◽  
Chief Executive ◽  
Firm Level ◽  
Self Confidence ◽  
Self Worth ◽  
Executive Officers ◽  
Leadership Research ◽  
The Relationship

This study proposes that chief executive officers who have received over their tenure a greater sum of total compensation relative to the market’s going rate become overconfident. We posit that this happens because historically overpaid chief executive officers perceive greater self-worth to the firm whereby such self-serving attribution inflates their level of self-confidence. We also identify chief executive officer- and firm-level cues that can influence the relationship between chief executive officers’ historical relative pay and their overconfidence, suggesting that chief executive officers’ perceived self-worth is more pronounced when chief executive officers possess less power and when their firm’s performance has improved upon their historical aspirations. Using a sample of 1185 firms and their chief executive officers during the years 2000–2016, we find empirical support for our predictions. Findings from this study contribute to strategic leadership research by highlighting the important role of executives’ compensation in creating overconfidence.

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