Econometric Modeling: Corporate Finance & Governance eJournal最新文献

{"title":"Common Auditors in Mergers and Acquisitions: The Impact on Post-Acquisition Financial Reporting Quality","authors":"Xi Ai, Andrew Doucet, Linda A. Myers, Kathleen Schuchard","doi":"10.2139/ssrn.3589811","DOIUrl":"https://doi.org/10.2139/ssrn.3589811","url":null,"abstract":"Prior research documents improvements in pre-acquisition outcomes when acquirer and target firms engage the same audit firm to perform their financial statement audits. We examine whether the advantages of engaging a common auditor prior to an acquisition translate into improved post-acquisition outcomes. We find that common auditors improve post-acquisition financial reporting quality as evidenced by a decreased likelihood of misstatement and of missed internal control material weaknesses following an acquisition. These benefits are attributable to same-office common auditors rather than common auditors from different audit offices. We also find that the effects of common auditors are more pronounced when the acquisition is more material to the acquirer and when the time between acquisition completion and the combined entity’s year-end is shorter. Finally, we find that common auditors are associated with lower non-audit service fees. Our findings suggest that common auditors, especially same-office common auditors, provide important post-acquisition benefits.","PeriodicalId":416026,"journal":{"name":"Econometric Modeling: Corporate Finance & Governance eJournal","volume":"21 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125942013","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":"Effect of Corporate Governance, Investment Strategy and Macroeconomic Factors on Financial Performance of Pension Schemes in Kenya","authors":"W. Akwimbi","doi":"10.2139/ssrn.3586384","DOIUrl":"https://doi.org/10.2139/ssrn.3586384","url":null,"abstract":"Pension schemes form a significant part of the global investment portfolio. In Kenya, they hold over 13% of the country’s GDP (OECD, 2018). Their importance is underscored by the fact that they contribute significantly to growth and development of world economies (Kakwani, Davis, 2005; Heijdra, Ligthart &amp; Jency, 2006). Their financial performance is critical to the provision of retirement benefits. Khan, Nouman &amp; Imran (2015) observed that the financial performance indicates measures to which economic goals of an organisation has been accomplished over particular time period. Pension schemes however, face numerous challenges that can render the generation of retirement benefits inadequate. <br><br>A number of studies have been undertaken to evaluate the impact of factors that influence performance of pension funds resulting in mixed and sometimes inconclusive findings. This study sought to assess the effect of corporate governance, investment strategy, interest rate, inflation rate, exchange rate and GDP growth rate on performance of pension funds in Kenya. The study was done using annual data on pension funds and economic indicators spanning the period 1997 to 2018. In addition, it used questionnaires to gather data on corporate governance and investment strategy indices.<br><br>Quantitative and correlational research design using Linear regression model was used to assess the effect of corporate governance, investment strategy, interest rate, inflation rates, GDP growth rates and exchange rate on pension performance. The study findings show that these factors had significant impact on pension funding. They however, varied on their individual contribution to the prediction of funding level of each pension fund.<br><br>The study concludes that pension fund management and policy makers should take into consideration the effects of macroeconomic factors, corporate governance and investment strategy in decision making on investment plans to ensure generation of adequate funds to fulfill their key objective of providing retirement benefits to the members. <br>","PeriodicalId":416026,"journal":{"name":"Econometric Modeling: Corporate Finance & Governance eJournal","volume":"283 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114082311","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":"Inside Debts or Outside Debts: Do Senior Executives Influence the Structure of Debts","authors":"Yue Li","doi":"10.2139/ssrn.3583921","DOIUrl":"https://doi.org/10.2139/ssrn.3583921","url":null,"abstract":"The purpose of this study is to analyze the structure of debts in different aged group, as well as executive pension arrangements. For whom aged under 50 categorizes as the junior executive group, while for whom aged above 50 categorizes as the senior executive group. The dataset is selected from Wharton Research Data Services with annual base. The variables are choosing from firm characteristics and executive characteristics. Among our findings, junior executives prefer to rely on the inside debts rather than outside debts. Senior executives are using different managerial strategies. The credit ratings might be the main factor to influence both of inside debts and outside debts. Based on different environment and target, the firms have specific strategies to run the debts.","PeriodicalId":416026,"journal":{"name":"Econometric Modeling: Corporate Finance & Governance eJournal","volume":"23 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129079037","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":"Innovative Activity, Growth Options and the Heterogeneous Return Performance of Cross-border vs. Domestic M&A Firms","authors":"Luca Del Viva, R. Ragozzino, L. Trigeorgis","doi":"10.2139/ssrn.3581584","DOIUrl":"https://doi.org/10.2139/ssrn.3581584","url":null,"abstract":"M&amp;A deals in the US are done mostly at the domestic level. We examine the M&amp;A performance of US acquirers during 1991-2014 based on the enhanced innovative capacity afforded by cross-border deals. We find that US firms engaging in cross-border M&amp;A have superior innovative capacity, which results in lower short-term returns and downside risk. In contrast, long-run returns following cross-border acquisition are higher.","PeriodicalId":416026,"journal":{"name":"Econometric Modeling: Corporate Finance & Governance eJournal","volume":"43 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133547997","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":"Institutional Debt Holder Governance","authors":"A. Keswani, A. Tran, P. Volpin","doi":"10.2139/ssrn.3282394","DOIUrl":"https://doi.org/10.2139/ssrn.3282394","url":null,"abstract":"Using data on the universe of US-based mutual funds, we find that two out of five fund families hold corporate bonds of firms in which they also own an equity stake. We show that the greater the fraction of debt a fund family holds in a given firm, the greater its propensity to vote in line with the interests of firm debt holders at shareholder meetings, even when against ISS recommendation. Voting has direct policy consequences as firms that receive more votes in favor of creditors make corporate decisions more in line with the interests of debt holders.","PeriodicalId":416026,"journal":{"name":"Econometric Modeling: Corporate Finance & Governance eJournal","volume":"12 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127880667","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":"Negotiated Block Trade and Rebuilding of Trust","authors":"Pak Hung Au, Yuk-fai Fong, Jin Li","doi":"10.1111/iere.12444","DOIUrl":"https://doi.org/10.1111/iere.12444","url":null,"abstract":"We investigate the impact of corporate governance on customers' trust using a dynamic model of experience‐goods firm. In the optimal equilibrium, customers' trust in the firm is linked to its behavior in the market for corporate control, so that the controlling shareholder has incentives to ensure high product quality while noncontrolling shareholders' interests are protected. Following a trust‐damaging event, turnover of the controlling share block restores customers' trust and enhances total shareholder value. Our analysis identifies an endogenous cost of corporate control, offers implications for the control premium, and provides a novel rationale for the separation of ownership and control.","PeriodicalId":416026,"journal":{"name":"Econometric Modeling: Corporate Finance & Governance eJournal","volume":"61 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"118870113","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":"Estimating the COVID-19 Cash Crunch: Global Evidence and Policy","authors":"Antonio De Vito, J. Gómez","doi":"10.2139/ssrn.3560612","DOIUrl":"https://doi.org/10.2139/ssrn.3560612","url":null,"abstract":"In this paper, we investigate how the COVID-19 health crisis could affect the liquidity of listed firms across 26 countries. We stress-test three liquidity ratios for each firm with full and partial operating flexibility in two simulated distress scenarios corresponding to drops in sales of 50% and 75%, respectively. In the most adverse scenario, the average firm with partial operating flexibility would exhaust its cash holdings in about two years. At that point, its current liabilities would increase, on average, by eight times, suggesting that the average firm would have to resort to the debt market to prevent a liquidity crunch. Moreover, about 1/10th of all sample firms would become illiquid within six months. Finally, we study two different fiscal policies, tax deferrals and bridge loans, that governments could implement to mitigate the liquidity risk. Our analysis suggests bridge loans are more cost-effective to prevent a massive cash crunch.","PeriodicalId":416026,"journal":{"name":"Econometric Modeling: Corporate Finance & Governance eJournal","volume":"2 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-04-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125413041","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 Unit-Weighted Mean - Because Size Matters","authors":"Eugene Canjels","doi":"10.2139/ssrn.3565305","DOIUrl":"https://doi.org/10.2139/ssrn.3565305","url":null,"abstract":"The unit-weighted mean is of frequent interest to applied researchers in a wide range of fields. Despite this interest, there is a lack of easily accessible theoretical statistical literature that shows its statistical properties. This paper provides the asymptotic distribution of the unit-weighted mean and a formula to calculate asymptotically valid standard errors. I show that numerically identical results can be obtained using a novel regression approach.","PeriodicalId":416026,"journal":{"name":"Econometric Modeling: Corporate Finance & Governance eJournal","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-03-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124270442","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":"Stock Price Fragility and the Cost of Bank Loans","authors":"Bill Francis, I. Hasan, Y. Shen, Pengfei Ye","doi":"10.2139/ssrn.3559895","DOIUrl":"https://doi.org/10.2139/ssrn.3559895","url":null,"abstract":"Abstract This study examines whether the flow volatility experienced by institutional investors affects firms’ financing costs. We use Greenwood and Thesmar’s (2011) stock price fragility to measure a firm’s exposure to its institutional investors’ flow shocks and find that firms with high stock price fragility pay much higher bank loan costs than firms with low fragility. This effect is most pronounced when lenders rely more on institutional shareholders to discipline corporate management, or when the loans are lent by relationship lenders, suggesting that unstable flows could weaken institutional investors’ monitoring effectiveness and strengthen relationship banks’ bargaining power. The paper adds to the evidence that non-fundamental risks (institutional investors’ flow shocks) can have a real impact on firms.","PeriodicalId":416026,"journal":{"name":"Econometric Modeling: Corporate Finance & Governance eJournal","volume":"40 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-03-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129836031","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":"Foreign Equity Ownership and Income Smoothing","authors":"Boochun Jung, Dongyoung Lee, Ilhang Shin, C.Y. Desmond Yuen","doi":"10.2139/ssrn.3329721","DOIUrl":"https://doi.org/10.2139/ssrn.3329721","url":null,"abstract":"\u0000 We examine whether foreign investors influence a local firm's income smoothing, using a sample of Korean firms from 2000 to 2013. We hypothesize that given innate informational difficulties of overseas investments, foreign investors demand less noisy and more sustainable earnings, and to satisfy this demand, managers have strong incentives to smooth earnings. We find that foreign investors' ownership is positively related to the level of earnings smoothing. We also find that earnings smoothing improves earnings informativeness in the presence of high foreign investor ownership, consistent with the notion that foreign investors play an important role in local firms' information environments.\u0000 JEL Classifications: M41; M43; J53.","PeriodicalId":416026,"journal":{"name":"Econometric Modeling: Corporate Finance & Governance eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-03-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132903806","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}