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Stock Performance (stock + performance)
Selected AbstractsMarket Misvaluation, Managerial Horizon, and AcquisitionsFINANCIAL MANAGEMENT, Issue 2 2010Huasheng Gao This paper analyzes the impact of managerial horizon on mergers and acquisitions activity. The main predication is that acquiring firms managed by short-horizon executives have higher abnormal returns at acquisition announcements, less likelihood of using equity to pay for the transactions, and inferior postmerger stock performance in the long run. I construct two proxies for managerial horizon based on the CEO's career concern and compensation scheme, and provide empirical evidence supporting the above prediction. Moreover, I also demonstrate that long-horizon managers are more likely to initiate acquisitions in response to high stock market valuation. [source] Evidence and Implications of Increases in Trading Volume Around Exchange ListingsFINANCIAL REVIEW, Issue 2 2001Kishore Tandon G10 Abstract After controlling for market volume trends and differences in volume measurement between the Nasdaq and the exchanges, we find that mean trading volumes increase significantly for Nasdaq stocks that list on the Amex or the NYSE. Furthermore, stocks with low (high) pre-listing volume tend to realize the largest volume increases (decreases) as well as the best (worst) post-listing performance. Our results support the hypothesis that stocks with high past trading volumes tend to experience lower future returns, and shed new light on the nature and possible causes of poor post-listing stock performance. [source] Cross-sectional determinants of post-IPO stock performance: evidence from ChinaACCOUNTING & FINANCE, Issue 3 2010Xin Chang This paper examines the cross-sectional determinants of post-IPO long-term stock returns in China. We document that the aftermarket P/E ratio has the most robust negative association with post-IPO stock returns. The negative relation indicates that the market corrects the aftermarket overvaluation of IPO firms in the long run. Underwriter reputation has a positive effect on post-IPO stock returns, while board size has a negative impact, consistent with the views that reputable underwriters mitigate the information asymmetry in IPO pricing and over-sized boards reduce the effectiveness of corporate governance. However, we find little evidence indicating that the equity ownership structure is significantly associated with post-IPO stock returns. [source] A Comparison Between One-Tier and Two-Tier Board Structures in FranceJOURNAL OF INTERNATIONAL FINANCIAL MANAGEMENT & ACCOUNTING, Issue 3 2010Benedicte Millet-Reyes French companies operate in a unique environment characterized by the strong involvement of block shareholders such as families and banks. Furthermore, the French legal system allows firms to choose between a one-tier or a two-tier board structure. This study investigates whether this choice can affect the firm's operating and stock performance. Our regression results provide strong evidence that ownership and board structures are used together as corporate governance tools. In particular, the agency cost of debt is strongly affected by their interaction when institutional investors are also bank lenders. Our test results show that while family control has a negative impact on corporate governance, French institutional blockholders play a positive role as monitors of one-tier structures. In contrast, they are more likely to misuse the two-tier board system by promoting interlocked directorship, board opacity and their own interests as creditors. Our regression analysis reveals that foreign institutional investors do not have any impact on firm performance, regardless of board structure. Finally, we do not find any inverse relationship between board size and efficiency in France. [source] THE RELATIONSHIP BETWEEN FINANCIAL INCENTIVES FOR COMPANY PRESIDENTS AND FIRM PERFORMANCE IN JAPAN,THE JAPANESE ECONOMIC REVIEW, Issue 4 2008KATSUYUKI KUBO Kaplan (1994) concludes that the relationship between top pay and stock performance in Japan is similar to that in the USA. Using a new and comprehensive data set that includes presidents' stock and their stock option holdings, this study estimates the sensitivity of Japanese presidents' wealth to shareholder wealth in the period 1977,2000. Contrary to the commonly held belief that Japanese corporate governance is becoming more like that in the USA, the results show that pay,performance sensitivity actually decreased substantially after 1990. In 2000, Japanese presidents received $US22,100 when stock returns increased from ,2.1% to 14.8%. [source] The Financial Performance of Low-Cost and Full-Service Airlines in Times of CrisisCANADIAN JOURNAL OF ADMINISTRATIVE SCIENCES, Issue 1 2005Triant Flouris This paper examines the stock and accounting performance of three major airlines in the United States in the aftermath of the September 11, 2001, terrorist attacks. September 11 (9/11) resulted in dramatic changes in the airline industry and had significant implications for the economic gains and future prospects of most airlines. Our study focuses on the stock market's perception of the viability of low-cost versus full-service business models in the aftermath of 9/11. We choose Southwest Airlines as a typical low-cost airline and compare its accounting and stock performance to two full-service airlines, Continental and Northwest. We find that Southwest's performance was highly superior to that of Continental and Northwest and argue that Southwest's business model, in the eyes of investors, provides the firm with significantly more financial and operational flexibility than full-service airlines. Southwest's lower operating costs, consumer trust, product offering, corporate structure, workforce and work practices, as well as operational procedures are all factors that appear to contribute to Southwest's relative success. Résumé Cet article étudie la performance boursière et comptable de trois grands transporteurs aériens opérant aux États-Unis au lendemain des attentats du 11 septembre 2001. Ces événements ont entraîné des changements radicaux dans l'industrie du transport aérien et ont eu des répercussions considérables sur les gains économiques de la plupart des compagnies aériennes. Notre étude compare la viabilité des modèles d'entreprise à bas prix à celle des modèles traditionnels, au lendemain de l'attaque terroriste. Nous avons choisi Southwest Airlines comme l'exemple type de transporteur aérien pratiquant des bas prix et nous comparons sa comptabilité et le rendement de son action à ceux de deux transporteurs aériens à service complet, notamment Continental et Northwest. Nous constatons que le rendement de Southwest est de loin supérieur à celui de Continental et de Northwest. Nous montrons que, d'après les investisseurs, le modèle de gestion de Southwest lui donne beaucoup plus de flexibilité financière et opérationnelle que le modèle de gestion pratiqué par les transporteurs aériens traditionnels. La faiblesse de ses charges d'exploitation, la confiance des consommateurs, son offre de produits, sa structure d'organisation, son effectif, ses pratiques de travail, ainsi que ses méthodes opérationnelles sont autant d'éléments qui semblent contribuer au succès relatif de Southwest. [source] |