scholarly journals Activist shareholders and the duration of supervisory board membership: Evidence for the German Aufsichtsra

2016 ◽  
Vol 13 (2) ◽  
pp. 521-531
Author(s):  
Alexander Bassen ◽  
Dirk Schiereck ◽  
Christian Thamm
Keyword(s):  
Capital Markets ◽  
Abnormal Return ◽  
Negative Impact ◽  
Supervisory Board ◽  
Wealth Effects ◽  
Balance Sheets ◽  
Average Abnormal Return ◽  
Board Membership

We study the fixed term nature of the German supervisory board appointment hypothesizing that the timing of the upcoming election has an impact on the credibility of effort by activist investors. More credible approaches should consequently be associated with higher wealth effects. An average abnormal return that is up to 6.9 percent higher can be observed when potential activists consider the timing of the next supervisory board election. Capital markets apparently perceive an activist effort within one to two years prior to the election as being most credible. Quite contrary to intuition it seems that high cash positions on targets’ balance sheets have a negative impact on the post-announcement wealth effects.

Reaksi Investor Saham Syariah dan Konvensional terhadap Pengumuman Pembentukan Kabinet Indonesia Maju 2019

2020 ◽  
Vol 5 (1) ◽  
Author(s):  
Ananta Hagabean Nasution ◽  
Alyta Shabrina Zusryn
Keyword(s):  
Event Study ◽  
Abnormal Return ◽  
Average Abnormal Return

Ketidakpastian politik sering menjadi peristiwa khusus yang berpengaruh terhadap return portofolio saham. Tujuan dari penelitian ini adalah untuk menguji pengaruh pengumuman pembentukan kabinet Indonesia Maju 2019-2024 terhadap harga saham yang terdaftar pada Indeks Syariah (ISSI) dan Indeks Harga Saham Gabungan (IHSG). Penelitian ini menggunakan metode event study untuk melihat adanya reaksi pasar yang dapat dilihat dari adanya abnormal return pada saham. Indikator yang digunakan adalah nilai average abnormal return (AAR) dan cumulative average abnormal return (CAAR). Hasil pada penelitian ini menunjukkan bahwa terdapat nilai AAR yang negatif dan signifikan pada sehari sebelum (t-1) dan setelah (t+1) pengumuman menteri pada indeks syariah dan pasar. Selain itu, terdapat perbedaan yang signifikan nilai cumulative average abnormal return (CAAR) sebelum dan sesudah pengumuman menteri pada t (-7,7) untuk portofolio ISSI dan t (-10,10) untuk portofolio IHSG. Adanya reaksi negatif invetor mengindikasikan terdapat kebingungan investor saham syariah terhadap menteri yang terpilih pada kabinet Indonesia Maju. Peristiwa ini diharapkan dapat membantu investor atau manajer investasi dalam menentukan strategi investasi pada saat terjadi ketidakpastian politik.

scholarly journals ANALISIS PERBEDAAN ABNORMAL RETURN DAN VOLUMEPERDAGANGAN SAHAM SEBELUM DAN SESUDAH PILPRES 9 JULI 2014 (STUDI KASUS PERUSAHAAN MILIK BAKRIE GROUP DAN MNC GROUP)

2016 ◽  
Vol 4 (2) ◽  
Author(s):  
Suharyati Suharyati ◽  
Sri Hermuningsih
Keyword(s):  
Abnormal Return ◽  
Trading Volume ◽  
Volume Activity ◽  
Average Abnormal Return ◽  
Before And After ◽  
A Company

The purpose of this study to analyze the differences abnormal return and trading volume activity before and after pilpres 9 July 2014, at the company Bakrie Group and MNC Group. The results show: (1) There are no differences in average abnormal return before and after pilpres 9 Juli 2014 on the company Bakrie Group and MNC Group.The absence of a difference is becausereaction IDX to the pilpres 9 July 2014 is instantaneous and not prolonged. (2) There are no differences inaveragetrading volume activitybefore and after pilpres 9 Juli 2014 on the company Bakrie Group, but there are differences in average trading volume activitybefore and after pilpres 9 July 2014 on the companyMNC Group. The discrepancies in the company MNC Group is because investors MNC Group took profit rollicking tacking. While no differences in the company Bakrie Group is because investors Bakrie Group are not bothered by pilpres 9 July 2014. (3) The Company is more affected by pilpres 9 July 2014 is a company owned by MNC Group. Keywords: Abnormal Return,TradingVolumeActivity, Pilpres 9 July 2014.

scholarly journals ANALISIS PERBEDAAN ABNORMAL RETURN DAN TRADING VOLUME ACTIVITY SEBELUM DAN SESUDAH PERISTIWA PENETAPAN UNDANG-UNDANG TAX AMNESTY

2021 ◽  
Vol 10 (3) ◽  
pp. 186-198
Author(s):  
I Komang Wisnu Wardhana ◽  
Hermanto Hermanto ◽  
I Nyoman Nugraha AP
Keyword(s):  
Abnormal Return ◽  
Trading Volume ◽  
Secondary Data ◽  
Volume Activity ◽  
Analytical Technique ◽  
Tax Amnesty ◽  
Average Abnormal Return ◽  
Before And After ◽  
The Difference

The purpose of this study was to determine the difference in the average abnormal return and trading volume activity before and after the enactment of the tax amnesty law on the LQ-45 index. The type of data used in this study is secondary data with data collection techniques using the documentation method. Determination of the sample in this study using purposive sampling method with certain criteria so as to obtain 45 samples. The analytical technique used in this research is paired sample t-test with an observation period of 10 days. The results of this study indicate that: (1) There is no difference in the average abnormal return before and after the enactment of the tax amnesty law. (2) There is no difference in the average trading volume activity before and after the enactment of the tax amnesty law. 

scholarly journals Financial Stability and Climate Change

2020 ◽  
Vol 9 (3) ◽  
pp. 27-43
Author(s):  
Nikola Fabris
Keyword(s):  
Climate Change ◽  
Financial Institutions ◽  
Financial Stability ◽  
Financial Risk ◽  
Negative Impact ◽  
Weather Conditions ◽  
Extreme Weather ◽  
Financial Risks ◽  
Balance Sheets ◽  
Sea Levels

AbstractFighting climate change is one of the biggest challenges in the 21st century. Climate change that leads to global warming has been increasingly visible in our environment. Extreme weather conditions such as hurricanes, floods, and droughts have been escalating and their acceleration can be expected in the future. They cause changes in sea levels, epidemics, large fires, etc. Increasingly, we are witnessing minor or major damage caused by these extreme weather conditions. Numerous studies have proven that climate change has negative impact on economic growth and prosperity. However, this paper starts from the premise that in addition to unequivocally identified threats, climate change also creates opportunities.The paper reaches a conclusion that climate change can adversely affect balance sheets of financial institutions. Therefore, climate change is a source of financial risk and thus a part of the mandate of central banks and supervisors in preserving financial stability. This type of risk has not been given enough attention by either supervisors or financial institutions over the past period. This paper develops a model for managing financial risks as a result of climate change.

scholarly journals The Announcement of Sharia Bank’s Conditional Merger Agreement. How Investor Reacted?

2021 ◽  
Vol 2 (2) ◽  
pp. 136-146
Author(s):  
Syamsuddin Syamsuddin ◽  
Versiandika Yudha Pratama
Keyword(s):  
Event Study ◽  
Stock Price ◽  
Abnormal Return ◽  
Secondary Data ◽  
T Test ◽  
Event Window ◽  
Paired Sample ◽  
Average Abnormal Return ◽  
Significant Difference ◽  
Before And After

This study aims to determine there is a difference in average abnormal return of BRI Syariah before and after the signing of the Conditional Merger Agreement (CMA), which is on October 12th, 2020. This research used event study for method and the data in this study are secondary data in the form of stock price data of BRI Syariah. The event window in this study for 11 (eleven) working days which is 5 (five) days before the event, 1 (one) day when the event occurs and 5 (five) days after the signing of the Conditional Merger Agreement (CMA) BUMN sharia bank. Meanwhile, the estimated period is set for 120 exchange days, namely at t-125 to t-6. Test conducted by paired sample t-test. The results of the paired sample t-test showed that there is no significant difference between the average abnormal return of BRI Syariah shares before and after the signing of the Conditional Merger Agreement. It can be concluded that neither the market nor investors reacted to the signing of the Conditional Merger Agreement (CMA) that occurred at BRI Syariah Bank.

scholarly journals The changing landscape of economy: social and technological progress in explaining the informational efficiency of capital markets

2020 ◽  
Vol 14 (1) ◽  
pp. 940-952
Author(s):  
Iuliana Ursu
Keyword(s):  
Market Efficiency ◽  
Capital Markets ◽  
Technological Progress ◽  
Bayesian Model Averaging ◽  
Negative Impact ◽  
Efficient Market Hypothesis ◽  
Social Progress ◽  
Informational Efficiency ◽  
Market Mechanisms ◽  
The Impact

AbstractIn today’s ever-changing landscape of economy, one of the fundamental problems remains whether market mechanisms are functioning in an efficient way, and which are the variables impacting those levels of efficiency. The main objectives of the present paper are to contribute to a better understanding of market mechanisms, by testing the Efficient market hypothesis on its weak form at a macroeconomic level, and to assess the impact of technological and social progress, measured through different variables, on markets informational efficiency. We use an adapted version of L. Kristoufek si M. Vosvrda (L. Kristoufek, M. Vosvrda, 2013, 184) methodology for Efficiency Index, based on long term memory (using 2 estimators), fractal dimension (using 11 estimators), and entropy (estimated through the approximate entropy), in order to assess the levels of efficiency for 20 market indices from both developed and emerging or frontier economies, from the Eurasia region. Further on, by using the Bayesian Model Averaging (BMA), we study the impact of technological and social progress on markets informational efficiency. Main results of the study reveal the existence of a market dynamics characterized by areas with distinctive levels of “informational efficiency”, within both developed and emerging economies, encompassing a non-negligible link between past and present, persistence or anti-persistence, and a high data complexity. Moreover, while studying the relationship between market efficiency and social and technological progress, we observe that variables such as Government Effectiveness, or Control of Corruption, have a positive impact on the levels of efficiency of capital markets, while most of the technological progress estimators (amongst which Computer, communications and other services (% of commercial service exports), or Individuals using the Internet (% of population)), have a negative impact, translated into a decrease of informational market efficiency on the short run (the rise of high frequency trading).

Education strategy misfit, board effectiveness and Indonesian Islamic bank performance

2020 ◽  
Vol 11 (3) ◽  
pp. 929-944
Author(s):  
Rahma Wijayanti ◽  
Vera Diyanty ◽  
Sugiyarti Fatma Laela
Keyword(s):  
Financial Performance ◽  
Negative Impact ◽  
Supervisory Board ◽  
Least Square ◽  
Bank Performance ◽  
Board Effectiveness ◽  
Content Type ◽  
Islamic Bank ◽  
Education Strategy ◽  
The Impact

Purpose This study aims to provide empirical evidence on the contingency factors that affect the implementation of education strategies and the impact of education strategy misfit on the performance and effectiveness of the board’s moderating role on the misfit level and performance of Islamic banks. Design/methodology/approach This research is a quantitative study with pooled ordinary least square panel data during the years 2007-2014 from all Indonesian Islamic commercial banks. Islamic bank performances are measured by the level of profitability and sharia financial performance. Board effectiveness is analysed by measuring the effectiveness of both the board of commissioners (BoC) and the sharia supervisory board (SSB). Findings This study proves that organisational competent qualities and chief executive officer tenure are the contingency factors that affect the implementation of the education strategy. This study’s results indicate that the effectiveness of both the BoC and SSB has a positive impact on the bank’s profitability and sharia financial performance. The results also show that misfit has a negative effect on sharia financial performance and that board effectiveness is proved to reduce the negative impact of a misfit on sharia financial performance. However, there is no strong evidence that board effectiveness reduces the negative impact of a misfit on profitability. Originality/value This study emphasises the importance of enhancing the competence and innovation of organisations in the implementation of education strategy and the need for synergy and increased capabilities among board members to achieve well-established Islamic bank performance.

scholarly journals Getting CFO on board – its impact on firm performance and earnings quality

2020 ◽  
Vol 33 (2) ◽  
pp. 435-454
Author(s):  
Lien Duong ◽  
John Evans ◽  
Thu Phuong Truong
Keyword(s):  
Firm Performance ◽  
Negative Impact ◽  
Earnings Quality ◽  
Least Square ◽  
Chief Financial Officers ◽  
Outside Directors ◽  
Content Type ◽  
Ordinary Least Square ◽  
Board Membership ◽  
The Impact

Purpose This paper aims to investigate the impact of Australian Chief Financial Officers (CFOs) as board insiders on firm performance and earnings quality with reference to agency theory and theory of friendly board. Design/methodology/approach The ordinary least square, two-stage least-squares and propensity score matching regressions are performed with various proxies for firm performance and accruals quality. Findings Firms with CFOs as board insiders experience significantly lower firm performance and earnings quality. In firms with powerful CEOs, the negative impact of CFO board membership on earnings quality is further magnified. Additionally, the negative impact of CFO board membership on firm values and earnings quality is only present in firms with bigger boards or firms with less outside directors. The findings are consistent with the agency perspective and in sharp contrast to the US market. Originality/value This is the first Australian study to examine the impact of CFO board membership on firm performance and earnings quality. The findings suggest that the monitoring of executives is best done by a small or independent board and that the insider board membership should be optimised.

Gesetzliche Mitbestimmung und Kapitalrendite Co-Determination and Return on Equity / Co-Determination and Return on Equity

2006 ◽  
Vol 226 (5) ◽  
Author(s):  
Kornelius Kraft ◽  
Marija Ugarkovič
Keyword(s):  
Panel Data ◽  
Capital Market ◽  
Negative Impact ◽  
Supervisory Board ◽  
Limited Liability ◽  
Voting Rights ◽  
Positive Influence ◽  
Return On Equity ◽  
German System ◽  
The Impact

SummaryMany observers regard the German system of codetermination as a very strong intervention into the working of the capital market. With the introduction of the codetermination law in 1976, employee representatives in limited liability companies with more than 2000 employees are entitled to occupy half of the number of seats and are granted nearly 50% of the voting rights on the supervisory board. We investigate the impact of the introduction of the German codetermination law in 1976 which implied an extension of co-determination from third parity to almost parity on return on equity. Our estimations are based on panel data for 179 companies from 1971 to 1976 and from 1981 to 1986, thus allowing for adjustment to the 1976 law. In contrast to frequently raised fears, no negative impact is found. Our empirical results suggest a positive influence from the 1976 strengthening of co-determination law on return on equity.

scholarly journals RENT EXTRACTION PADA PERUSAHAAN DENGAN STRUKTUR KEPEMILIKAN TERKONSENTRASI DI BURSA EFEK INDONESIA

2020 ◽  
Vol 9 (4) ◽  
pp. 404
Author(s):  
Ni Ketut Surasni ◽  
Hermanto Hermanto ◽  
Hermanto Hermanto
Keyword(s):  
Event Study ◽  
Ownership Structure ◽  
Abnormal Return ◽  
Market Reaction ◽  
Rent Extraction ◽  
Concentrated Ownership ◽  
Average Abnormal Return ◽  
The Difference ◽  
Difference Test

This study aims to examine the existence of rent extraction by examining the market reaction to the increase and decrease in dividends. For this purpose, the method used is an event study. Market reaction is measured using cumulative average abnormal return (CAAR). If CAAR is high> CAAR is low. hence rent extraction is proven, dividends are proven to relieve conflict between majority and minority. By using the difference test, it was not proven that high CAAR> low CAAR. These results indicate that investors do not react to increases or decreases in dividends. In companies with a concentrated ownership structure, dividends do not function as a reliever for conflicts between majority and minority. Kata kunci: Concentrated ownership structure, rent extraction, dividends.

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