Do Venture Capitalists Play a Monitoring Role in an Emerging Market: Evidence from the Pay-Performance Relationship of Chinese Entrepreneurial Firms?

This research is formulating the cause of agency conflict into three factors. The first one is agent unsatisfactory on the existing compensation system. The second is the high ratio of free cash flow in the company. The last is the absence of good monitoring on the company operation. Based on those three factors, this research aims to find a full perspective of these occurrences. One of the tools to investigate it is using EVA® as investigator tools, which is relatively new as a performance measurement in Emerging Market. The proxy variables on agency conflict are new investment ratio and total asset turn over. The control variables are dividend payout ratio and leverage. There are two research questions that being addressed in this research. The first, if there are any differences in agency conflict proxies between companies that have positive EVA® in their performance and companies with negative EVA®. The Second is to analyze if EVA® has significant role to influence the behavior of manager which tend to trigger the agency conflict within the company. The Methodology of this research was paired t-test data comparison between positive EVA companies and negative EVA. In addition, we analyzed the relationship of variable within the model with Data pool from 2002 until 2011To sum up the methodology; we tested the model with robustness test and Causality Test as well. The research finds out that Manager in companies with better EVA® tend to have lower agency conflict level. In conclusion, EVA® is strongly supporting the control variable in explaining its influence on dependent variables or agency conflict proxies.

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Financing Innovation: A Complex Nexus of Risk & Reward

10.31219/osf.io/sdxqv ◽

2021 ◽

Author(s):

Sourish Dutta

Keyword(s):

Institutional Environment ◽

Product Market ◽

Venture Capitalists ◽

Entrepreneurial Firms ◽

Entrepreneurial Finance ◽

Indian Market ◽

Ownership Structures ◽

Economics Of Innovation ◽

System P ◽

Innovative Firms

The crucial and growing role performed by different financial intermediaries such as venture capitalists and angel investors as well as more traditional intermediaries such as commercial banks in developing entrepreneurial or innovative firms and boosting product market innovations has led to great research interest in the economics of innovation and entrepreneurial finance. Besides this, there are some important factors or developments which have affected the entrepreneurial finance in general as well as its influence upon different entrepreneurial or innovative firms. Indeed, it is also true that the financial and ownership structures of the different entrepreneurial firms and the legal as well as the institutional environment, in which they operate, itself affects the product market innovations (Chemmanur and Fulghieri, 2014). Therefore, in this paper, I want to target a broad theme i.e. analysis of the mechanisms behind this scenario, especially, in the context of the Indian market system.

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Information Content of Dividend Changes in an Emerging Market

International Journal of Banking and Finance - Vol. 15, Number 2, 2020 ◽

10.32890/ijbf2004.2.1.8341 ◽

2004 ◽

Author(s):

Nur Adiana Hiau Abdullah ◽

Rosemaliza Abdul Rashid ◽

Yusnidah Ibrahim

Keyword(s):

Cash Flow ◽

Emerging Market ◽

Abnormal Returns ◽

Agency Cost ◽

Free Cash Flow ◽

Cross Sectional ◽

Market Reactions ◽

Dividend Announcements ◽

Stock Market Reactions ◽

Relationship Of

Supports on the free cash flow and agency cost theory from dividend announcements studies have been heavily discussed in the Western literature, but they have not been given much attention in the Asian countries, particularly in Malaysia. This paper focuses on examining the relationship of the stock market reactions due to dividend announcements and ten company-specific variables identified from the literature as potential determinants. The results from cross-sectional and stepwise regressions both showed that none of the determining variables could explain the variation in cumulative abnormal returns (CARs) for the increasing dividend announcements. For decreasing dividend announcements, both regressions identified the degree of anticipation to be significant and inversely related to CARs. In addition, the indigenous population ownership, which is a unique characteristic of the Malaysian equity market is also found to be significant in influencing the effect of decreasing dividend announcements. The findings provide no support for the free cash flow and agency cost theory.

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Determinants of Dividend Policy: A Panel Data Analysis for Turkish Listed Firms

International Journal of Business and Management ◽

10.5539/ijbm.v10n11p149 ◽

2015 ◽

Vol 10 (11) ◽

pp. 149 ◽

Cited By ~ 4

Author(s):

Narman Kuzucu

Keyword(s):

Growth Rate ◽

Panel Data ◽

Stock Market ◽

Dividend Policy ◽

Emerging Market ◽

Panel Data Analysis ◽

Firm Level ◽

Family Control ◽

Relationship Of ◽

The Relationship

<p>Dividend policy of firms is one of the most controversial issues of theoretical finance. This paper aims to investigate the firm-level factors influencing the dividend decisions of firms from an emerging market. We examined eight-year panel data for the period from 2006 to 2013 from the Turkish stock market (Borsa Istanbul). The results show that financial leverage, size, growth rate, age, profitability, ownership structure and P/E ratio are statistically significant. The relationship of leverage, growth rate, profitability and family control with dividends is negative, whereas the relationship of size, age and P/E ratio is positive. Therefore, firms with higher debt ratios / growth rates / higher earnings are likely to retain more of their earnings. The empirical evidence from the Turkish stock market shows that the maturity hypothesis proposed by Grullon, Michaely and Swaminathan (2002) best explains the dividend behaviors of firms. Accordingly, as a firm matures, the availability of profitable projects reduces and earnings decrease. As the investment opportunities reduce, the need for resources decreases and the firm increases dividend payouts to shareholders.</p>

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Evaluating the validity of Student Evaluation of Teaching Effectiveness (SET) in India

Education + Training ◽

10.1108/et-06-2013-0072 ◽

2015 ◽

Vol 57 (6) ◽

pp. 623-638 ◽

Cited By ~ 4

Author(s):

Sanjiv Mittal ◽

Rajat Gera ◽

Dharminder Kumar Batra

Keyword(s):

Teaching Effectiveness ◽

Student Evaluation ◽

Emerging Market ◽

Two Dimensions ◽

Cross Cultural ◽

Student Evaluation Of Teaching ◽

Content Type ◽

Evaluation Of Teaching ◽

Relationship Of ◽

Indian Students

Purpose – There is a debate in literature about the generalizability of the structure and the validity of the measures of Student Evaluation of Teaching Effectiveness (SET). This debate spans the dimensionality and validity of the construct, and the use of the measure for summative and formative purposes of teachers valuation and feedback. The purpose of this paper is to contribute to the debate on the aforementioned issues. Specifically the paper tests the relationship of teacher’s “charisma” trait with a measure of SET consisting of the two dimensions of “lecturer ability” and “module attributes.” The market characteristics of the paper are those of an emerging market and cross-cultural context with a specific reference to India. Design/methodology/approach – In this study, a two-dimensional scale of SET, which was originally developed by Shevlin et al. (2000) in their study in the UK, was empirically tested with Indian students and modified. Empirical data were collected from Indian students pursuing their MBA program in a north Indian university and statistical testing using exploratory and confirmatory factor analyses was undertaken. The proposed relationship of a teacher’s “charisma” trait was tested as a reflective construct comprising of the two dimensions of SET with the help of the software package Amos ver 4.0. Findings – The results indicate that the measure of SET is influenced by the teacher’s “Charisma” (trait), thus providing evidence of a halo effect. This raises the issue of validity of SET as an instrument for measuring teaching effectiveness (TE). The results provide support to the hypothesis that structure of SET is multidimensional along with the need for adapting the instrument in diverse cultural and market contexts. Originality/value – This study contributes to the debate on the validity, structure and use of SET as an instrument for measuring TE in a developing market with cross-cultural implications such as India.

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VENTURE CAPITAL INVESTMENTS IN EMERGING ECONOMIES: AN EMPIRICAL ANALYSIS

Journal of Developmental Entrepreneurship ◽

10.1142/s1084946705000203 ◽

2005 ◽

Vol 10 (03) ◽

pp. 253-269 ◽

Cited By ~ 4

Author(s):

MEDHI SALEHIZADEH

Keyword(s):

Stock Market ◽

Emerging Economies ◽

Emerging Market ◽

Capital Inflows ◽

Venture Capitalists ◽

Capital Investments ◽

Industrialized Countries ◽

Micro Level ◽

Venture Capital Investments

In the international arena an increasing number of entrepreneurs and venture capitalists have succeeded, yielding both micro-level financial rewards and macro-level prosperity and improved economic conditions for many industrialized countries. The next logical "group," with a potential to reap such benefits, is expected to be the emerging economies. This study tabulates and analyzes an emerging market VC-investment dataset, and then identifying and testing a number of independent economic and financial factors that explain such investments for a selected group of emerging countries. Based on 1990-2003 data covering 19 nations, the regression results show four of the five proposed variables, namely GDP per capita, long-term capital inflows, stock market listings, and a measure of stock market correlations, to be significant in explaining VC investments.

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