Managerial Market Timing: What Is the Pot Size for Long-Term Shareholders Assuming Firm Management Acts in Their Best Interest and Does Have an Informational Advantage?

PICO question In dogs weighing under 15 kg with unilateral cranial cruciate ligament disease, does tibial tuberosity advancement lead to better long-term functional outcomes than lateral fabellar suture? Clinical bottom line Category of research question Treatment The number and type of study designs reviewed There were no papers that answered the PICO question Strength of evidence Zero Outcomes reported Between TTA and LFS none of the techniques was shown to provide better long-term functional outcomes than the other in dogs weighing less than 15 kg Conclusion Given the absence of evidence answering the PICO question, choice and recommendation of procedure between TTA and LFS in dogs weighing under 15 kg should be guided by what the surgeon deems to be in the best interest of the patient How to apply this evidence in practice The application of evidence into practice should take into account multiple factors, not limited to: individual clinical expertise, patient’s circumstances and owners’ values, country, location or clinic where you work, the individual case in front of you, the availability of therapies and resources. Knowledge Summaries are a resource to help reinforce or inform decision making. They do not override the responsibility or judgement of the practitioner to do what is best for the animal in their care.

Equity market timing and capital structure: evidence on post-IPO firms in Indonesia

International Journal of Emerging Markets ◽

10.1108/ijoem-04-2018-0197 ◽

2019 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Dewi Ratih

Keyword(s):

Capital Structure ◽

Market Timing ◽

Equity Market ◽

Content Type ◽

Corporate Capital ◽

Corporate Capital Structure ◽

Short Run ◽

Practical Implications ◽

Equity Market Timing

Purpose The purpose of this paper is to analyze and evaluate the impacts of equity market timing on corporate capital structure policies in Indonesia by apply Baker and Wurgler’s analytical approach to firms in Indonesia to see, first, if that approach applies to Indonesian firms and, second, if it can be generalized to other emerging markets. Design/methodology/approach This study will focus on capital structure policies based on Market Timing Theory in developing countries, which uses the panel data of companies listed in Indonesian Stock Exchange after IPO. The companies used as research object are 70 firms in the non-financial/non-banking sector with the observation period of 2000–2015. The period of measurement is five years after IPO. Using a past market value in which equity market timing is measured in two-time measurements, i.e. yearly timing and long-term timing to prove its persistence. Findings Consistent with equity market timing theory, the results suggest that firms tend to issue equities when their market valuations are relatively higher than their book values and their past market values are high. As a consequence, the firms become underleveraged or have their debts reduced in the short run. The results of long-term measurement on equity market timing do not appear to affect the firms’ capital structure decisions due to the firms’ relatively quick adjustments of optimal capital structures. The conclusion is that equity market timing is an important element in the short run but not in the long run. Research limitations/implications The results of this study describe how firms in Indonesia take advantage of temporary market share fluctuations through equity market timing in their capital structure policies before ultimately making adjustments to the directions they are targeting. Practical implications The use of equity market timing is more aimed at reducing the debt ratio and avoiding unfavorable conditions in the debt market, as well as taking advantage of the capital gains derived from the differences in their stock prices. This study also has practical implications on investment policies that need to consider the adaptation factor of the industrial environment when it comes to making capital structure decisions, including how the entity must take policy when uncertain economic conditions. Social implications Through the research behavior of capital structure more in-depth decision is expected to provide an overview for investors widely in determining investment policy. Thus, the investment strategy is more planned and can also anticipate unexpected conditions. Originality/value This research is the first study to analyze and to evaluate the impacts of equity market timing on corporate capital structure policies on post-IPO firms in Indonesia. This research is an empirical study that investigates the relevance of equity market timing considerations in the determination of debt-equity choices in the capital structure, included in the conditions of the global financial crisis.

Investor Horizons and Corporate Policies

Journal of Financial and Quantitative Analysis ◽

10.1017/s0022109013000628 ◽

2013 ◽

Vol 48 (6) ◽

pp. 1755-1780 ◽

Cited By ~ 72

Author(s):

François Derrien ◽

Ambrus Kecskés ◽

David Thesmar

Keyword(s):

Corporate Governance ◽

Market Timing ◽

Short Term ◽

Equity Financing ◽

Corporate Policies ◽

Corporate Behavior ◽

Self Selection ◽

Stock Mispricing

AbstractWe study the effect of investor horizons on corporate behavior. We argue that longer investor horizons attenuate the effect of stock mispricing on corporate policies. Consistent with our argument, we find that when a firm is undervalued, greater long-term investor ownership is associated with more investment, more equity financing, and less payouts to shareholders. Our results do not appear to be explained by long-term investor self-selection, monitoring (corporate governance), or concentration (blockholdings). Our results are consistent with a version of market timing in which mispriced firms cater to the tastes of their short-term investors rather than their long-term investors.

Recommendations: The Federal Depository Library Program and Title 44

DttP Documents to the People ◽

10.5860/dttp.v46i1.6657 ◽

2018 ◽

Vol 46 (1) ◽

pp. 17

Author(s):

GODORT Government Documents Round Table

Keyword(s):

Best Interest ◽

Library Program ◽

Do So

GODORT’s FDLP / Title 44 Principles are recommendations that seek to strengthen the promise of long-term access to federal information by building on the existing strengths of the Federal Depository Library Program (FDLP). These Principles focus on Chapter 19 but also address policy codified in other parts of Title 44, including Chapters 17, 35, and 41.We see the majority of these Principles as supportive of activities authorized under current law, and in many cases already underway as part of existing GPO initiatives. If there is an opportunity to strengthen and clarify these provisions, we believe it is the best interest to do so.

Learning Whether to Cooperate in Novel Social Interactions

10.31234/osf.io/rnkum ◽

2019 ◽

Author(s):

William H.B. McAuliffe ◽

Michael E. McCullough ◽

Maxwell Burton-Chellew

Keyword(s):

Social Interactions ◽

Social Life ◽

Best Interest ◽

Short Term ◽

Daily Lives ◽

Self Interest ◽

Long Term Consequences ◽

Lines Of Evidence ◽

Human Social Life

Human social life is rife with uncertainty. In any given social interaction, one can wonder: Is cooperating with this person in my long-term best interest? Many people resolve to play it safe by cooperating rather than behaving selfishly, likely because (a) most social interactions in everyday life have long-term consequences and (b) the costs of alienating oneself from long-term social partners often outweighs the short-term benefits of cheating them. However, since trusting and sharing with others does not always advance self-interest, people might also learn through experience whether cooperation benefits them in any particular situation. Here, we review several lines of evidence suggesting that people initially decide when to share and trust based on the incentives that are present in their daily lives, but that they can also learn through experience to adjust their cooperation decisions to match the incentives of novel situations.

Use of Machine Learning for Long Term Planning and Cost Minimization in Healthcare Management

10.1101/2021.10.06.21264654 ◽

2021 ◽

Author(s):

Sadia Binta Kabir ◽

Salman Sadiq Shuvo ◽

Helal Uddin Ahmed

Keyword(s):

Reinforcement Learning ◽

Capacity Planning ◽

Cost Minimization ◽

Capacity Expansion ◽

Developed Countries ◽

Healthcare Management ◽

Best Interest ◽

Healthcare Facilities ◽

Expansion Plan

AbstractThe Healthcare system of a country is a crucial infrastructure that requires long-term capacity planning. The covid 19 outbreak pointed to the necessity of adequate hospital capacity, especially for developing countries like Bangladesh. The existing infrastructure planning of these countries emphasizes short-term goals and lacks vision planning for a long time horizon. It is in the country’s best interest to make long-term capacity expansion plans, a strategy the developed countries banked to provide adequate healthcare facilities to their residents. However, no single solution is appropriate for a different region. Hence, it is required to comprehensively study the situation and constraints of the specific region before providing expensive capacity expansion plans. This work focuses on applying a deep Reinforcement Learning based long-term hospital bed capacity expansion plan. We utilize the RNN-LSTM based population forecast, deep Reinforcement Learning (RL) based policy-making, and state-of-the-art Artificial Intelligence techniques to provide a solution. We perform a case study for the Abhaynagar Upazila of Jessore, one of the largest cities in the southwest part of Bangladesh, to analyze the benefits of such an approach compared to existing myopic policies. The experiment results show that the deep RL-based policy significantly minimizes cost over a 30-year expansion plan.

Re-purposing Universities: The Path to Purpose

Frontiers in Sustainability ◽

10.3389/frsus.2021.762271 ◽

2022 ◽

Vol 2 ◽

Author(s):

Victoria Hurth ◽

Iain S. Stewart

Keyword(s):

Ad Hoc ◽

Social Institutions ◽

Best Interest ◽

Business World ◽

Sustainable Future ◽

Sustainability Initiatives ◽

Core Questions ◽

Extent Of Damage ◽

University Leaders

As the extent of damage to environmental systems from our business-as-usual activity becomes ever more alarming, Universities as core social institutions are under pressure to help society lead the transition to a sustainable future. Their response to the issues, that they themselves have helped reveal, has, however, been widely criticised for being wholly inadequate. Universities can be observed to engage with sustainability issues in ad-hoc ways, with the scale of attention and commitment dependant mainly on the level of pressure exerted by stakeholders that works to overcome aspects of inherent inertia. Sustainability initiatives can therefore be regarded mainly as bolt-ons. This mirrors how other sectors, including businesses, have tended to respond. As the environmental and social crisis mounts and the window for adaptive change to ensure long-term wellbeing for all narrows, the pressure for deeper systemic change builds. It is in this context that transformation to a “purpose-driven organisation” has emerged as a systemic approach to change, enabling an organisation to align deeply and rapidly with society's long-term best interest and hence a sustainable future. Nowhere has this concept been taken forward more obviously than in the business sector. As business leadership towards purpose becomes more apparent, so the lack of action in this area by universities appears starker. In this paper we clarify what it means to be a purpose-driven organisation, why and how it represents a deep holistic response to unsustainability, and what core questions emerging from the business world university leaders can ask themselves to begin the practical journey to transform their institutions into purpose-driven universities.

Equity Issue and a Long-Term Effect of Equity Market Timing on Capital Structure

International Journal of Engineering & Technology ◽

10.14419/ijet.v7i3.21.17100 ◽

2018 ◽

Vol 7 (3.21) ◽

pp. 82

Author(s):

Miswanto Miswanto ◽

. .

Keyword(s):

Capital Structure ◽

Stock Exchange ◽

Market Timing ◽

Equity Market ◽

Term Effect ◽

Distributed Lag ◽

Long Term Effect ◽

Speed Adjustment ◽

Equity Market Timing

After the research about a short term effect of equity market timing on capital structure, the author is motivated to do research about a long term effect of equity market timing on capital structure of the firms which is listed in Indonesia Stock Exchange. The main problems on this research are to understand whether firms use equity market timing theory when issuing equity, and whether equity market timing has a long term effect on its capital structure. Then the purpose of this study is to examine the problems of this research. There are two hypothesis in this research. First, firms use equity market timing when issuing equity, and second, equity market timing has a long term effect on capital structure of firms in Indonesia. This research uses non-financial companies listed on the Indonesia Stock Exchange over the period of 2001 to 2011 as the sample. The data used in this research are panel data. The sample choosing is based on sample non-probability sampling using purposive sampling in form of judgment sampling. The research model used in this study is a distributed-lag regression model. The results of this research show that firms use equity market timing when issuing equity, and equity market timing does not have a long term effect on capital structure of firms in Indonesia. Thus, because there is deviation on the capital structure, then there is an indication that the firms will perform the process of speed adjustment towards the targeted capital structure, the optimum capital structure.

The impact of market timing on capital structure: Evidence from Vietnamese listed companies

Science & Technology Development Journal - Economics - Law and Management ◽

10.32508/stdjelm.v1iq3.460 ◽

2017 ◽

Vol 1 (Q3) ◽

pp. 105-120

Author(s):

Tra Thanh Ngo ◽

Tuyen Van Tran ◽

Diep Van Nguyen

Keyword(s):

Capital Structure ◽

Market Timing ◽

Negative Relationship ◽

Growth Potential ◽

Leverage Ratio ◽

The Public ◽

The Moment ◽

The Impact ◽

First Time

This study uses the theory of market timing in considering capital structure of the sample of 430 companies which are listed on Vietnam's stock market and implemented IPO in the period of 2006 - 2012. Following the research method of Alti (2006), the article used the variable HOT to represent the factor of market timing in order to understand the relationship between this variable and leverage variable in the short-term (in the year of IPO) and in the long-term (year of IPO + 1, IPO + 2, ..., IPO + 6). The results showed no statistically significant evidence about the negative relationship between the HOT and leverage ratios. It implies that in the first time that companies issue their share capital to the public, the ―active‖ or ―gloomy‖ situation of market is not related to the leverage ratio at the moment of observation. In addition, the results also showed that variables relating to characteristics of company such as growth potential, profitability and scale have a statistically significant relation to capital structure and tangible has no impact on leverage ratio.