Corporate Finance: Valuation最新文献

{"title":"A Behavioral Finance Approach to Working Capital Management in Context of Pakistani Firms","authors":"S. Haider, D. Siddiqui","doi":"10.2139/ssrn.3683103","DOIUrl":"https://doi.org/10.2139/ssrn.3683103","url":null,"abstract":"Behavioral finance incorporates cognitive psychology into conventional finance, suggesting that people are prone to various heuristic driven biases in the decision-making process. Nevertheless, the literature on behavioral finance and working capital is rather thin, as studies of working capital tend to focus on either its determinants or its relation with profitability. We aim to bridge this substantial gap by exploring the influence of different behavioral biases including self-serving biases, level of confidence and loss aversion bias and representativeness bias altogether with different components of working capital management individually, which include cash management, inventory management, account receivables management, account payables (debt) management and risk management. The data collection from 97 finance professionals through a self-structured questionnaire comprising 32 questions on a Likert scale. The data analysis is through Smart PLS. The result indicated that behavioral biases exert a direct influence on all Working capital parameters but a weak relationship for account payables in the context of Pakistan’s services and manufacturing companies.","PeriodicalId":127551,"journal":{"name":"Corporate Finance: Valuation","volume":"15 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-08-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130402310","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Exploring the Nexus between Financial Flexibility, Managerial Efficiency, Ownership, and Performance: An Interactive Model for Growth, Mature, and Stagnant Companies in Pakistan","authors":"Amjad Ali, D. Siddiqui","doi":"10.2139/ssrn.3681306","DOIUrl":"https://doi.org/10.2139/ssrn.3681306","url":null,"abstract":"After financial crises, regulatory control makes it difficult for firms in acquiring cash flows to sustain financial safety. As a result, many listed companies in Pakistan prone to follow the “new pecking order theory” whereby they prefer equity financing rather than debt financing. Yet, the dynamics between financial constraints, efficiency, and performance are not clear. And whether the firm life cycle affects these dynamics, is still an open question. Hence, the purpose of this paper is to examine whether the managerial efficiency of Pakistani firms with financial flexibility is demonstrated differently across firm life cycles. To measure flexibility, we created a modified Financial Flexibility Index (FFI) based on Chang & Ma (2019) methodology. The study employed a sample of 30 firms listed on Pakistan stock exchange and gathered data from the annual reports during the period 2009 to 2018. The fixed effect regression model is applied by using balanced panel data. The result revealed that financial flexibility has a significant and positive effect on firm performance, however firm performance in the stagnant stage of lifecycle does not have a significant effect with financial flexibility, while in the mature and growth stage there is a significant impact of FFI on firm performance. More importantly, managerial efficiency (ME) turns out to be the key factor in affecting firm performance in all the stages of the lifecycle. It seems to have a negative effect. However, a negative complementarity was observed between FFI and ME, meaning higher FFI would decrease the negative impact of ME in performance. This complementarity turns positive in mature companies, as compared to the other two groups. Tobin's q, Dividends and Ownership, and Tangibility have a significant and positive effect overall, However, Tangibility seems to affect negatively growth and stagnant companies. Variables like control power, block holder ownership, Size, and Age doesn’t seem to affect performance. This study has implications for corporate managers, if they want to reduce the chances of financial distress and enhance the firm performance, then they obtain and maintain financial flexibility by keeping the leverage at a low level.","PeriodicalId":127551,"journal":{"name":"Corporate Finance: Valuation","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129450175","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Risk Committee, Corporate Risk-Taking, and Firm Value","authors":"Md. Borhan Uddin Bhuiyan, Muhammad A. Cheema, Yimei Man","doi":"10.2139/ssrn.3681601","DOIUrl":"https://doi.org/10.2139/ssrn.3681601","url":null,"abstract":"Purpose: We empirically examine the impact of the stand-alone risk committee on corporate risk-taking and firm value. <br><br>Design/methodology/approach: We argue that the existence of a stand-alone risk committee enhances the quality of corporate governance, which reduces corporate risk-taking and strengthens the firm value that might improve investor protection. <br><br>Findings: We find several measures of risk-taking decline significantly for firms that have a stand-alone risk committee compared with firms that have a joint audit and risk committee. We also find that the presence of a stand-alone risk committee is positively associated with firm value. <br><br>Practical implications: The evidence is consistent with the proposition that firms with a stand-alone risk committee can effectively evaluate potential risks and implement a proper risk management system.<br><br>Originality: This is the first paper that investigates the association between the existence of a stand-alone risk committee and firm risk-taking in a multi-industry setting. Also, our research extends the association between a stand-alone risk committee and firm value.","PeriodicalId":127551,"journal":{"name":"Corporate Finance: Valuation","volume":"79 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126446115","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Consumer Demand Shocks and Firm Linkages: Evidence from Demonetization in India","authors":"Faizaan Kisat, M. Phan","doi":"10.2139/ssrn.3698258","DOIUrl":"https://doi.org/10.2139/ssrn.3698258","url":null,"abstract":"Exploiting a unique natural experiment, the 2016 demonetization episode in India, this paper analyzes the extent to which a consumer demand shock propagates through firms’ input-output networks. In November 2016, India demonetized 86% of its currency, creating a nationwide demand shock. We construct measures of upstreamness to evaluate the impact of the demonetization shock on firms based on their position in the supply chain. Contrary to the predictions of many network models, we find that the shock does not meaningfully propagate across the supply chain. Revenues, wages, and investment decline substantially after demonetization, but these negative effects are largely limited to consumer facing firms. We identify several mechanisms, such as pricing power, inventory frictions, and export intensity, which independently explain this result. Our findings suggest that final goods producers are particularly susceptible to, and therefore must be protected against, unexpected declines in consumer demand.","PeriodicalId":127551,"journal":{"name":"Corporate Finance: Valuation","volume":"53 ","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-08-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133587134","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Deregulating Innovation Capital: The Effects of the JOBS Act on Biotech Startups","authors":"C. Lewis, Joshua T. White","doi":"10.2139/ssrn.3640852","DOIUrl":"https://doi.org/10.2139/ssrn.3640852","url":null,"abstract":"\u0000 We examine real outcomes for biotech startups going public around the Jumpstart Our Business Startups (JOBS) Act. Reduced compliance costs associate with greater innovation capital formation as biotech IPO volume and proceeds increase after the JOBS Act. Biotechs, which conduct over 30% of IPOs since 2012, go public with products earlier in the FDA approval process and more frequently target rare diseases and cancer. Consistent with our survey evidence that managers use compliance savings to invest in R&D, we link the JOBS Act to post-IPO increases in project-level development, such as new patents, clinical trials, and staffing of laboratories. Post-JOBS Act product candidates are more likely to reach key milestones in the FDA approval process and these startups fail at lower rates. Benefits accrue to shareholders without sacrificing financial reporting quality. Our results demonstrate how tailoring regulations for startups can provide economic and societal benefits.","PeriodicalId":127551,"journal":{"name":"Corporate Finance: Valuation","volume":"95 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-08-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126142683","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Impact of Informational Content of Intangible Assets on the Firm Performance: Evidence from MENA Countries Stock Exchanges","authors":"N. Alber, Yasser Barakat","doi":"10.2139/ssrn.3669803","DOIUrl":"https://doi.org/10.2139/ssrn.3669803","url":null,"abstract":"This paper attempts to investigate the impact of informational content of intangible assets on the firm performance. Informational content of intangible assets has been measured by “Current Site Rank” (RAN), “No. of Engagements on the Site” (ENG), “No. of Site Visitors” (VIS), “Change in No. of Site Visitors” (CIV), “Bounce Rate” (BOU) and “Change in Bounce Rate” (CIB), while firm performance has been measured by \"Price to Tangibles Ratio\" (PTR) and “Return on Assets” (ROA). \u0000 \u0000This has been applied on companies listed in stock exchanges of 4 MENA countries (Egypt, KSA, Tunisia and UAE), on daily basis during the 4th quarter 2019 and 1st quarter 2020. Results indicate that \"Price to Tangibles Ratio” seem to be affected by each of “No. of Site Visitors”, “Change in No. of Site Visitors”, and “Change in Bounce Rate”. Besides, “Return on Assets” (ROA) may have been affected by each of “Current Site Rank”, “No. of Engagements on the Site” and “Bounce Rate”.","PeriodicalId":127551,"journal":{"name":"Corporate Finance: Valuation","volume":"149 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-08-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121769964","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Index Investing and Corporate Investment-Price Sensitivity","authors":"Matthew T. Billett, Ha Diep-Nguyen, Jon A. Garfinkel","doi":"10.2139/ssrn.3555397","DOIUrl":"https://doi.org/10.2139/ssrn.3555397","url":null,"abstract":"Firm investment-stock price sensitivity declines in SP by weaker results when the focal firm manager is relatively more informed; and by dynamic reallocation of focal firm investment sensitivity to indexed vs. non-indexed peers.","PeriodicalId":127551,"journal":{"name":"Corporate Finance: Valuation","volume":"92 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-08-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124424221","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"APV-Verfahren und Fremdkapital Beta (APV-Approach and Debt Beta)","authors":"A. Enzinger","doi":"10.2139/ssrn.3730716","DOIUrl":"https://doi.org/10.2139/ssrn.3730716","url":null,"abstract":"<b>German Abstract:</b> Auch wenn dem Debt Beta Konzept in Theorie und Bewertungspraxis mittlerweile viel Raum eingeräumt wird, bleiben die Interdependenzen mit dem APV-Ansatz oft unbeachtet. Der vorliegende Beitrag versucht diese Lücke zu schließen. Aufbauend auf den Grundlagen zur Ermittlung des Debt Beta wird zum einen gezeigt, welche impliziten Annahmen zum Debt Beta das APV-Verfahren in der Regel unterstellt, die zur Herstellung der Konsistenz bei Anwendung anderer DCF-Verfahren zu berücksichtigen sind. Zum anderen wird dargestellt, wie die bei Anwendung anderer DCF-Verfahren getroffenen Annahmen zum Debt Beta den nach dem APV-Verfahren ermittelten Unternehmenswert beeinflussen.<br><br><b>English Abstract:</b> Even though the debt beta concept is meanwhile comprehensively covered in theory and practical valuation, the interdependence with the APV-approach is barely considered. This paper aims to close this gap. Based on the principles of debt beta calculation first the implicit assumptions regarding the debt beta that are regularly supposed by applying the APV-approach, relevant for achieving consistent valuation results with other DCF methods, are examined. Second it is analyzed, how assumptions regarding debt beta when applying other DCF-methods influence the company value calculated by the APV-approach.","PeriodicalId":127551,"journal":{"name":"Corporate Finance: Valuation","volume":"102 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-07-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115652255","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Strategic Deviance and Cash Holdings","authors":"Xueyan Dong, Kam C. Chan, Yujia Cui, Jenny Xinjiao Guan","doi":"10.2139/ssrn.3663556","DOIUrl":"https://doi.org/10.2139/ssrn.3663556","url":null,"abstract":"We examine the impact of strategic deviance on corporate cash holdings and find that firms with strategies that deviate from their industry peers hold more cash. This pattern can be consistent with an agency motive, a precautionary motive, or both. We show that the value of cash holdings decreases with strategic deviance and that the cash effect of strategic deviance increases with agency costs but not with financial constraints, consistent with an agency motive. Finally, we find that strategically deviant firms pay lower dividends and avoid more taxes, both of which can potentially contribute to cash holdings. We conclude that strategically deviant firms hold more cash due to an agency motive.","PeriodicalId":127551,"journal":{"name":"Corporate Finance: Valuation","volume":"2676 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-07-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127680168","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Korea Discount and Chaebols","authors":"Romain Ducret, Dušan Isakov","doi":"10.2139/ssrn.3657018","DOIUrl":"https://doi.org/10.2139/ssrn.3657018","url":null,"abstract":"Abstract Finance practitioners frequently claim that stocks of Korean firms are undervalued and trade at a discount relative to foreign firms. This phenomenon is commonly called “the Korea discount”. It is based on anecdotal evidence comparing either the price–earnings ratios of different market indexes or those of different individual stocks. This paper provides empirical evidence on the existence of such a discount using a large sample of stocks from 28 countries over the period 2002–2016. We find that Korean stocks have significantly lower price-earnings ratios than their global peers. We also investigate the role of large business groups called chaebols, which are often considered to be the main cause of the discount because of their poor corporate governance. Our findings show that it is not the case.","PeriodicalId":127551,"journal":{"name":"Corporate Finance: Valuation","volume":"27 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-07-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122003148","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}