scholarly journals THE MARKETABILITY DISCOUNT IN SPANISH VALUATION MULTIPLES: INVESTORS’ PERCEPTION IN LISTED COMPANIES VERSUS PRIVATE TRANSACTIONS

2019 ◽  
Vol 20 (1) ◽  
pp. 107-130 ◽  
Author(s):  
Ángel Rodríguez López ◽  
Gracia Rubio Martín
Keyword(s):  
Cross Section ◽  
Firm Size ◽  
Listed Companies ◽  
Previous Literature ◽  
Public And Private ◽  
Valuation Methodology ◽  
Public Versus Private ◽  
Important Evidence

The aim of this paper is to assess the fair marketability discount (MD) in the Spanish market for valuation multiples comparing public versus private transactions. The study finds that to obtain MD it is necessary previously to control by a battery of factors that affects ratios’ prices such as industry, firm size, profitability, risk, year and also other characteristics about the buyer. The interactions of MD with each variable showed different investors’ perceptions about non marketability enterprises explaining MD. The valuation methodology applied in the research was a cross section of 824 public and private acquisitions in the Spanish market from the period 2006−2017. This work represents important evidence, in a more integrated vision than previous literature, for analysts and regulators stressing the necessity to apply MD in Spanish valuation processes based in listed multiples.

Integrated reporting and board characteristics: evidence from top Australian listed companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamed Omran ◽  
Dinesh Ramdhony ◽  
Oren Mooneeapen ◽  
Vishaka Nursimloo
Keyword(s):  
Firm Size ◽  
Gender Diversity ◽  
Listed Companies ◽  
Board Independence ◽  
Integrated Reporting ◽  
Growth Opportunities ◽  
Content Type ◽  
Board Characteristics ◽  
International Integrated Reporting Council ◽  
Practical Implications

PurposeDrawing upon agency theory, this study analyses the influence of board characteristics on integrated reporting (IR) for the top 50 companies listed on the Australian Securities Exchange (ASX50). Focus is placed on IR at the aggregate level as well as its separate components, namely Future Opportunities and Risks (FOPRI), Governance and Strategy (GOVSTR), Performance (PERF), Overview and Business Model (OBM) and General Preparation and Presentation (GPP).Design/methodology/approachA checklist is devised based on the IIRC (International Integrated Reporting Council) framework to track companies' disclosures for the period from 1st July 2014 to 30th June 2017. Regression analysis is used to investigate the determinants (board size, board independence, activity of the board, gender diversity, firm size, profitability and growth opportunities) of IR and its separate components.FindingsThe findings indicate a significant and positive effect of board independence on the aggregate IR index, FOPRI and GPP. A negative and significant association is found between activity of the board and both the aggregate IR index and its separate components, including GOVSTR, PERF and GPP. Additionally, the aggregate IR index is significantly related to firm size, profitability and growth opportunities.Research limitations/implicationsThe limited sample of 50 companies over three years is the main limitation of the study. The study suffers from an inherent limitation from the use of content analysis in assessing the level of IR. No checklist to measure the level of IR can be fully exhaustive. Furthermore, we focus on whether an item in the checklist is disclosed, using a dichotomous scale, thus ignoring the quality of information disclosed.Practical implicationsThe study has several practical implications. From a managerial perspective, it shows that having more board meetings harms the level of IR. The results can guide regulators, such as the Australian Securities and Investment Commission (ASIC) and the Australian Securities Exchange (ASX), when drafting new regulations/guidelines/listing rules. If regulators aim for a higher level of integration in the reports, they know which “triggers to pull” to attain their target. Our results can guide regulators to choose the appropriate trigger among various alternatives. For instance, if a higher level of integrated reporting is desired, size instead of profitability should be chosen. Finally, ASX listed companies can use our checklist as a scorecard for their self-assessment.Originality/valueThis research is the first to investigate IR by devising a checklist based on IIRC (2013) along with an additional GPP component in the ASX context. Using separate models to examine each component of the aggregate IR index is also unique to this study. The study also brings to the fore the role of gender-diverse boards in promoting IR. It reiterates the debate about imposing a quota for better gender representation on boards.

Financial Reporting Fraud: Public and Private Companies

2016 ◽  
Vol 1 (1) ◽  
pp. A27-A41 ◽  
Author(s):  
A. Scott Fleming ◽  
Dana R. Hermanson ◽  
Mary-Jo Kranacher ◽  
Richard A. Riley
Keyword(s):  
Financial Reporting ◽  
Primary Objective ◽  
Private Company ◽  
Private Companies ◽  
Public And Private ◽  
Public Companies ◽  
Multivariate Tests ◽  
Public Company ◽  
Public Versus Private ◽  
Financial Reporting Fraud

ABSTRACT This study uses survey data gathered by the Association of Certified Fraud Examiners (ACFE) and provided to the Institute for Fraud Prevention (IFP) to examine differences in the profile of financial reporting fraud (FRF) between private companies and public companies. Although private companies represent a significant portion of the economy, largely due to lack of data on these companies, most research on FRF examines only public companies. The primary objective of this study is to determine how private company FRF is different from FRF in public companies. Our multivariate tests reveal that public companies have stronger anti-fraud environments, are more likely to have frauds that involve timing differences, tend to experience larger frauds, have frauds that involve a larger number of perpetrators, and are less likely to have frauds that are discovered by accident. Overall, it appears that the stronger anti-fraud environment in public companies leads public company FRF perpetrators to use less obvious fraud methods (i.e., timing differences) and to involve larger fraud teams to circumvent the controls. These public company frauds are larger than in private companies, and their larger size may make them more likely to be detected through formal means, rather than by accident. Based on the results, we encourage auditors and others to be particularly attuned to the unique risks of the public versus private setting.

Paradigms of Public Relations in an Age of Digitalization

2021 ◽  
pp. 262-277
Author(s):  
Badreya Al-Jenaibi
Keyword(s):  
Social Media ◽  
Social Change ◽  
Public Relations ◽  
United Arab Emirates ◽  
Cross Section ◽  
The State ◽  
Interview Data ◽  
Public Acceptance ◽  
Global Media ◽  
Public And Private

This study explores the uses of social media in public relations (PR) departments in the United Arab Emirates (UAE). It seeks to lay the basis for understanding the place of social media in the UAE and to contribute to the analysis of the issue of social change in the PR offices. The chapter assesses the state of PR in the UAE in relation to global media and highlights needs in this area for both public and private enterprises. Presenting interview data taken from a cross section of 40 organizations throughout the UAE, it addresses perceptions of benefits, challenges, public acceptance, and future strategies of social media in relation to global SM as whole. It finds that barriers to the use and acceptance of SM in PR have mostly been lifted.

Determinants of ERP Implementations

2009 ◽  
pp. 180-197
Author(s):  
Javier de Andrés ◽  
Pedro Lorca ◽  
Jose Emilio Labra
Keyword(s):  
Rational Choice ◽  
Firm Size ◽  
Technological Development ◽  
Listed Companies ◽  
Control Group ◽  
Matched Control Group ◽  
Erp System ◽  
Factors Influencing ◽  
Rational Choices ◽  
Innovation Model

This chapter aims to determine the factors influencing the decision of implementing an ERP system in a country where technology awareness and the technological development are not as high as those of some others. Firstly, the authors assume that adopters make rational choices but the authors also introduce an alternative innovation model based on the imitation perspective. A questionnaire was sent to the Spanish listed companies and the ERP; adopting firms were compared with a matched control group. The main results indicate that the only factors stemming from the rational-choice perspective, whose influence is relevant, are firm size and the ROI ratio. Also, the authors found that the introduction of the euro and the Y2K issue had an influence in the ERP decision. The influence of the sectoral adscription was supported partially. These findings evidence a certain influence of the imitation effect. The results of this chapter could eventually be extrapolated to the countries whose national culture is similar to that of Spain.

scholarly journals An overview of different seed production initiatives in Nepal

2013 ◽  
Vol 3 ◽  
pp. 1-10
Author(s):  
MN Paudel ◽  
S Pokhrel ◽  
N Gadal ◽  
G Ortiz Ferrara ◽  
D KC ◽  
...  
Keyword(s):  
Food Security ◽  
Seed Production ◽  
Cross Section ◽  
Swot Analysis ◽  
Food Crops ◽  
Private Institutions ◽  
Seed Systems ◽  
Public And Private ◽  
Major Food ◽  
Seed System

Findings of study related to seed and seed initiatives in seven districts encompassing different classes of seed systems have been explained. Source seed produced by public and private institutions in Nepal is illustrated to make proper analogue as to how seed systems could be made practically functional. SWOT analysis of important seed systems is compared in issues pertaining to seed systems in Nepal. Information received from the seed related stakeholders has been analyzed to draw the inference covering different seed system initiatives in Nepal. On the basis of scientific evidences collected from concerned stakeholders from cross section of study districts on various issues of seed, recommendations have been proposed to make effective seed systems by amalgamation of available seed production initiatives under single funneled seed system that could be implemented to sustain food security and enhanced productivity of crops in general and major food crops in particular in Nepal. Agronomy Journal of Nepal (Agron JN) Vol. 3. 2013, Page 1-10 DOI: http://dx.doi.org/10.3126/ajn.v3i0.8981

QUANTITY UNCERTAINTIES IN REINFORCEMENT WORKS-COMPARISON OF PUBLIC VERSUS PRIVATE CLIENTS

2019 ◽  
Vol 6 (1) ◽  
Author(s):  
Markus Kummer
Keyword(s):  
Distribution Functions ◽  
Specific Reference ◽  
Relevant Parameter ◽  
Construction Process ◽  
Descriptive Data ◽  
Public And Private ◽  
The Right ◽  
Public Versus Private ◽  
Expert Surveys ◽  
Construction Practice

Uncertainties are systematically considered and dealt with by applying probabilistic calculation methods, such as Monte Carlo simulations. When selecting appropriate distribution functions for input parameters, users are constantly faced with the issue of having to choose the "right" distribution function for the relevant parameter. Quantities of individual works play a crucial role for costing and pricing, but also for construction process and logistics planning purposes. Quantities stated by the client in its structural specifications are fraught with uncertainties owing to, for instance, incomplete plans at the time of specification, inaccurate calculations, or mere estimates. This is why actual quantities can either be greater or smaller than the specified quantities. This paper demonstrates how distribution functions can be derived from expert surveys delivering responses from actual construction practice. Specific reference is made to reinforcement works whilst distinguishing between public and private clients. The outcomes of the survey presented and discussed in this paper include descriptive data analyses as well as violin plots and fitted distribution functions.

scholarly journals The Impact of Effective Corporate Boards and Audit Committees on Attracting Foreign Ownership in Listed Companies in the Gulf Cooperation Council

2017 ◽  
Vol 9 (2) ◽  
pp. 190
Author(s):  
Mohammed Gubran Al-shamahi ◽  
Kamarul Bahrain Abdul Manaf ◽  
Ali Saleh Al-arussi
Keyword(s):  
Firm Size ◽  
Stock Markets ◽  
Boards Of Directors ◽  
Listed Companies ◽  
Foreign Ownership ◽  
Gulf Cooperation Council ◽  
Audit Committees ◽  
Corporate Boards ◽  
Political Risks ◽  
The Impact

This study empirically examines the impact of effectiveness of both corporate boards and audit committee on foreign ownership in selected non-financial listed companies of the stock markets in Gulf Cooperation Council (GCC) countries. Contrary to previous studies, this study enters the firm size, leverage, exchange rate risks, inflation risks and economic growth as control variables. For the first time, it also includes the political risks’ variable as a control variable that may affect foreign ownership. In term of panel data regression analysis, the study was built on fixed effect model and conducted to the period of 2012-2015 for 143 non-financial listed companies on the GCC stock markets. Our results explain that foreign ownership is positively related to the effectiveness of both the boards of directors and the audit committees. Political risks and firm size are positively significant with foreign ownership, while the leverage is negatively related to foreign ownership. The implication of this study may help beneficiaries in making better policy decisions and provide guidance for corporate managers on the needs of foreign investors.

scholarly journals The Day Of The Week Effect: An Analysis Of The Johannesburg Stock Exchange Top 40 Firms

2013 ◽  
Vol 12 (3) ◽  
pp. 319
Author(s):  
James Plimsoll ◽  
Ben Saban ◽  
Andreas Spheris ◽  
Kanshukan Rajaratnam
Keyword(s):  
Stock Exchange ◽  
Listed Companies ◽  
Previous Literature ◽  
Specific Level ◽  
Johannesburg Stock Exchange ◽  
Specific Focus ◽  
Day Of The Week ◽  
Top 40 ◽  
Micro Analysis ◽  
Estimation Models

This study investigates the existence of the Day of the Week (DoW) effect on returns and volatility on the Johannesburg Stock Exchange (JSE), with a specific focus on the markets Top 40 firms (Top40). It is the most micro analysis of the DoW effect conducted to date, as previous literature has only explored the effect on market and index levels. While this paper focuses on a firm-specific level, it also makes a comparison with the DoW effect on the All-Share Index (ALSI) and Top40 Index (TOPI). Drawing on Borges (2009) study, this paper investigates whether a DoW effect exists on a specific day compared with the rest of the week. This is achieved by regressing returns on each day of the week separately. GARCH estimation models are used to test for a DoW effect with regards to variance in share returns. The initial findings show that neither the ALSI nor the TOPI have any significant DoW effects. However, a more micro examination reveals that ten of the Top40 firms have significant DoW effects on at least one day of the week. The investigation reveals no significant DoW effects with regards to volatility, which highlights that the constituents of the Top40 typically achieve consistent returns compared to other listed companies.

scholarly journals Does Audit Quality Moderate the Relationship between Accounting Information and the Share Price? Evidence from Jordan

2019 ◽  
Vol 12 (3) ◽  
pp. 58
Author(s):  
Yazan Oroud ◽  
Md. Aminul Islam ◽  
Tunku Salha Tunku Ahmad ◽  
Anas Ghazalat
Keyword(s):  
Panel Data ◽  
Financial Crisis ◽  
Firm Size ◽  
Audit Quality ◽  
Accounting Information ◽  
Listed Companies ◽  
Cash Flows ◽  
Share Price ◽  
Share Prices ◽  
The Relationship

Effect of accounting information on the share price has been having the share of attention from researchers for over six decades owing to the increasing of global financial crisis. Hence, this study attempts to contribute to literature by investigating such relationship in Jordan, a developing country. Specifically, this study investigates the relationship between the cash flow and accruals on share price of listed companies on Amman Stock Exchange for the year 2002 to 2014 also the effect of financial crisis on the share price before and after 2008. The model of this study was theoretically founded on both the agency and the signaling theories. To examine the developed model, the required data were gathered from the annual reports of 236 listed Companies. In analyzing the data, this study utilized the panel data methodology on 117 companies with 1521 observations. Moreover, this study used audit quality (audit firm size and audit tenure) as moderating variable. Based on the panel data results, the fixed effect model was used to examine the effect of the cash flows and accruals on the share price. The accruals and cash flows combined have significant effects on the share prices of the Jordanian companies listed on ASE. Audit quality, whether auditor’s firm size or auditor’s tenure, has significant moderating effect on associations of the share prices with accruals and with cash flows and the 2008 financial crisis had negative effects on share prices of the Jordanian companies listed on ASE. This study provides deep insights into relative usefulness of cash-based and accrual-based accounting measures and assist investors, regulators, analysts, and other stakeholders in evaluating the liquidity and financial performance of Jordanian companies listed on ASE, which may result in better allocation of economic resources by enabling the investors to take informed investment decisions, thus promoting a more efficient Jordanian capital market.

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