Executive Ownership and Excess Cash Policy in the UK: Evidence from the Pre-Crisis Period

2014 ◽  
Author(s):  
Alfonsina Iona ◽  
Leone Leonida
Keyword(s):  
Crisis Period ◽  
Excess Cash ◽  
The Uk

scholarly journals Does executive ownership lead to excess target cash? The case of UK firms

2017 ◽  
Vol 17 (5) ◽  
pp. 876-895 ◽  
Author(s):  
Alfonsina Iona ◽  
Leone Leonida ◽  
Alexia Ventouri
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Cash Holdings ◽  
Logit Analysis ◽  
Governance Mechanism ◽  
Governance System ◽  
Content Type ◽  
Excess Cash ◽  
The Uk ◽  
The Impact

Purpose The aim of this paper is to investigate the dynamics between executive ownership and excess cash policy in the UK. Design/methodology/approach The authors identify firms adopting an excess policy using a joint criterion of high cash and cash higher than the target. Logit analysis is used to estimate the impact of executive ownership and other governance characteristics on the probability of adopting an excess cash policy. Findings The results suggest that, in the UK, the impact of the executive ownership on the probability of adopting an excess cash policy is non-monotonic, in line with the alignment-entrenchment hypothesis. The results are robust to different definitions of excess cash policy, to alternative specifications of the regression model, to different estimation frameworks and to alternative proxies of ownership concentration. Research limitations/implications The authors’ approach provides a new measure of the excess target cash for the firm. They show the need to identify an excess target cash policy not only by using an empirical criterion and a theoretical target level of cash, but also by capturing persistence in deviation from the target cash level. The authors’ measure of excess target cash calls into questions findings from previous studies. The authors’ approach can be used to explore whether excess cash holdings of UK firms and the impact of managerial ownership have changed from before the crisis to after the crisis. Practical implications The authors’ measure of excess target cash allows identifying in practice levels of cash which are abnormal with respect to an equilibrium level. UK firms should be cautious in using executive ownership as a corporate governance mechanism, as this may generate suboptimal cash holdings and suboptimal firm value. Excess cash policy might be driven not only by a poor corporate governance system, but also by the interplay between agency costs of managerial opportunism and cost of the external finance which further research could explore. Originality/value Actually, “how much cash is too much” is a question that has not been addressed by the literature. The authors address this question. Also, this amount of cash allows the authors to study the extent to which executive ownership contributes to explain the out-of-equilibrium persistency in the cash level.

scholarly journals The value relevance of unrealized gains and losses around the financial credit crisis: Evidence from the UK

2016 ◽  
Vol 14 (1) ◽  
pp. 351-359 ◽  
Author(s):  
Mohammad Alhadab ◽  
Yasean Tahat
Keyword(s):  
Foreign Currency ◽  
Value Relevance ◽  
Credit Crisis ◽  
Accounting Standard ◽  
Crisis Period ◽  
Currency Exchange ◽  
Financial Credit ◽  
The Uk ◽  
Gains And Losses ◽  
The Impact

This paper examines the usefulness of the unrealized gains and losses on foreign currency exchange and marketable securities, using a sample of UK non-financial FTSE 350 around the recent financial credit crisis. A number of findings are reported by the current study. First, study finds that the unrealized gains and losses on foreign currency exchange and marketable securities matter when making investment decisions and can explain changes in firms’ market value, however, this relationship becomes more negative post-the crisis period indicating that investors attach some value for such information. Second, the study concludes that investors underestimate the value of firms report unrealized gains and losses in the post-crisis period, confirming the view that these items are considered to be one of the major drivers of the credit crisis. The present articles provides a great deal of implication for national (UK Accounting Standard Board) and international (IASB) accounting regulators about the impact of using unrealized gains and losses of foreign currency exchange and marketable securities.

The diagnosis and management of factor VIII and IX inhibitors: a guideline from the UK Haemophilia Centre Doctors' Organization (UKHCDO)

2000 ◽  
Vol 111 (1) ◽  
pp. 78-90 ◽  
Author(s):  
C. R. M. Hay ◽  
T. P. Baglin ◽  
P. W. Collins ◽  
F. G. H. Hill ◽  
D. M. Keeling
Keyword(s):  
Factor Viii ◽  
Diagnosis And Management ◽  
Viii And Ix ◽  
The Uk

1476: Prostate Cancer Detection in Men Aged 45-49 Years in the UK Protect (Prostate Testing for Cancer and Treatment) Trial

2006 ◽  
Vol 175 (4S) ◽  
pp. 476-477
Author(s):  
Freddie C. Hamdy ◽  
Joanne Howson ◽  
Athene Lane ◽  
Jenny L. Donovan ◽  
David E. Neal
Keyword(s):  
Prostate Cancer ◽  
Cancer Detection ◽  
Treatment Trial ◽  
Prostate Cancer Detection ◽  
The Uk

653: The Protect (Prostate Testing for Cancer and Treatment) Study: Evaluating Screening and Treatment of Clinically Localised Prostate Cancer in the UK

2006 ◽  
Vol 175 (4S) ◽  
pp. 210-210
Author(s):  
◽  
Freddie C. Hamdy ◽  
Athene Lane ◽  
David E. Neal ◽  
Malcolm Mason ◽  
...  
Keyword(s):  
Prostate Cancer ◽  
The Uk

597 Can we use BNP and NTproBNP to rule out heart failure in clinical practice? Results of the UK natriuretic peptide study

2003 ◽  
Vol 2 (1) ◽  
pp. 131
Author(s):  
A ZAPHIRIOU ◽  
S ROBB ◽  
G MENDEZ ◽  
T MURRAYTHOMAS ◽  
S HARDMAN ◽  
...  
Keyword(s):  
Heart Failure ◽  
Clinical Practice ◽  
Natriuretic Peptide ◽  
The Uk ◽  
Rule Out

Ethnic Differences in Self-Poisoning Across South London

Crisis ◽  
2014 ◽  
Vol 35 (4) ◽  
pp. 268-272
Author(s):  
Sean Cross ◽  
Dinesh Bhugra ◽  
Paul I. Dargan ◽  
David M. Wood ◽  
Shaun L. Greene ◽  
...  
Keyword(s):  
Black Women ◽  
Data Collection ◽  
White Women ◽  
Population Based ◽  
Care Services ◽  
Self Harm ◽  
Managing Risk ◽  
The Uk ◽  
Incident Cases ◽  
Minority Ethnic

Background: Self-poisoning (overdose) is the commonest form of self-harm cases presenting to acute secondary care services in the UK, where there has been limited investigation of self-harm in black and minority ethnic communities. London has the UK’s most ethnically diverse areas but presents challenges in resident-based data collection due to the large number of hospitals. Aims: To investigate the rates and characteristics of self-poisoning presentations in two central London boroughs. Method: All incident cases of self-poisoning presentations of residents of Lambeth and Southwark were identified over a 12-month period through comprehensive acute and mental health trust data collection systems at multiple hospitals. Analysis was done using STATA 12.1. Results: A rate of 121.4/100,000 was recorded across a population of more than half a million residents. Women exceeded men in all measured ethnic groups. Black women presented 1.5 times more than white women. Gender ratios within ethnicities were marked. Among those aged younger than 24 years, black women were almost 7 times more likely to present than black men were. Conclusion: Self-poisoning is the commonest form of self-harm presentation to UK hospitals but population-based rates are rare. These results have implications for formulating and managing risk in clinical services for both minority ethnic women and men.

Childhood Intelligence Predicts Adult Trait Openness

2016 ◽  
Vol 37 (2) ◽  
pp. 105-111 ◽  
Author(s):  
Adrian Furnham ◽  
Helen Cheng
Keyword(s):  
Structural Equation Modeling ◽  
Structural Equation ◽  
Social Background ◽  
Study Data ◽  
Equation Modeling ◽  
Direct Effects ◽  
Data Set ◽  
National Child Development Study ◽  
Nationally Representative ◽  
The Uk

Abstract. This study used a longitudinal data set of 5,672 adults followed for 50 years to determine the factors that influence adult trait Openness-to-Experience. In a large, nationally representative sample in the UK (the National Child Development Study), data were collected at birth, in childhood (age 11), adolescence (age 16), and adulthood (ages 33, 42, and 50) to examine the effects of family social background, childhood intelligence, school motivation during adolescence, education, and occupation on the personality trait Openness assessed at age 50 years. Structural equation modeling showed that parental social status, childhood intelligence, school motivation, education, and occupation all had modest, but direct, effects on trait Openness, among which childhood intelligence was the strongest predictor. Gender was not significantly associated with trait Openness. Limitations and implications of the study are discussed.

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