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Kinds of Investors Terms modified by Investors Selected AbstractsINVESTORS ADJUST EXPECTATIONS AROUND SELL-SIDE ANALYST REVISIONS IN IPO RECOMMENDATIONSTHE JOURNAL OF FINANCIAL RESEARCH, Issue 1 2009Deepika Bagchee Abstract In this article I compare investor response to sell-side analyst recommendation revisions of initial public offering (IPO) firms in the first three years after issue with that of a benchmark control sample of firms that have been public longer. I test whether investors in IPO firms adjust their initially optimistic expectations as information about new issues is released and uncertainty is resolved. In support of my hypothesis that investors adjust expectations downward, I find abnormally negative returns around analyst revisions of IPO firm recommendations. Additionally, I find the effect of analyst revisions on long-run performance of IPO firms is economically significant. [source] FUNDING EXTERNALITIES, ASSET PRICES AND INVESTORS' ,SEARCH FOR YIELD'BULLETIN OF ECONOMIC RESEARCH, Issue 1 2009Prasanna Gai G15; E44; E58 ABSTRACT This note presents a simple model that nests the ,excess liquidity' and ,savings glut' hypotheses of the debate on the recent asset price boom. It clarifies the notion of investors' ,search for yield' and shows how financial frictions influence asset price dynamics. [source] Opening Up the Investor,Investee Dyad: Syndicates, Teams, and NetworksENTREPRENEURSHIP THEORY AND PRACTICE, Issue 2 2006Andy Lockett First page of article [source] Blowback: Investor,State Dispute Mechanisms in International Trade AgreementsGOVERNANCE, Issue 2 2006ANN CAPLING The North American Free Trade Agreement (NAFTA) gave unprecedented rights to private investors. These provisions quickly became entrenched in policy and practice, appearing in most multilateral and bilateral trade agreements in the 1990s as American investors began to bring Canada and Mexico to arbitration. However, the Australia,U.S. Free Trade Agreement (AUSFTA) of 2004 contained no such provisions. The purpose of this article is to explain why enthusiasm for NAFTA-style protections waned so dramatically after a decade of entrenched practice. We argue that the reason lies in the "blowback," the unintended and negative consequences created by NAFTA's Chapter 11, and conclude that the abandonment of NAFTA-style protections in the AUSFTA sets important precedents for the future of international free trade agreements. [source] Investor and Analyst Reactions to Earnings Announcements of Related Firms: An Empirical AnalysisJOURNAL OF ACCOUNTING RESEARCH, Issue 5 2002Sundaresh Ramnath In this article I examine the response of investors and analysts of nonannouncing firms to the earnings report of the first announcers in the industry. The error in the earnings forecast of the first announcer is found to be informative about the errors in the contemporaneous earnings forecasts of subsequent announcers in the industry. However, investors and analysts do not appear to fully incorporate the information from the first announcers' news in their revised earnings expectations for subsequent announcers. This apparent underreaction to the first announcers' news leads to predictable stock returns for subsequent announcers in the days following the first announcement. Results of this study can be seen as further evidence of investor and analyst underreaction to publicly available information. [source] An Empirical Assessment of Country Risk Ratings and Associated ModelsJOURNAL OF ECONOMIC SURVEYS, Issue 4 2004Suhejla Hoti Abstract., Country risk has become a topic of major concern for the international financial community over the last two decades. The importance of country ratings is underscored by the existence of several major country risk rating agencies, namely the Economist Intelligence Unit, Euromoney, Institutional Investor, International Country Risk Guide, Moody's, Political Risk Services, and Standard and Poor's. These risk rating agencies employ different methods to determine country risk ratings, combining a range of qualitative and quantitative information regarding alternative measures of economic, financial and political risk into associated composite risk ratings. However, the accuracy of any risk rating agency with regard to any or all of these measures is open to question. For this reason, it is necessary to review the literature relating to empirical country risk models according to established statistical and econometric criteria used in estimation, evaluation and forecasting. Such an evaluation permits a critical assessment of the relevance and practicality of the country risk literature. The paper also provides an international comparison of risk ratings for twelve countries from six geographic regions. These ratings are compiled by the International Country Risk Guide, which is the only rating agency to provide detailed and consistent monthly data over an extended period for a large number of countries. The time series data permit a comparative assessment of the international country risk ratings, and highlight the importance of economic, financial and political risk ratings as components of a composite risk rating. [source] Impact of the QFII Scheme on Investment-Cash Flow Sensitivity,ASIA-PACIFIC JOURNAL OF FINANCIAL STUDIES, Issue 3 2009Jung-Hua Hung Abstract Taiwan is an important emerging economy which has adopted a progressive strategy to open up its securities markets, mainly through the QFII (Qualified Foreign Institutional Investor) scheme. This paper examines Taiwan's QFII experience so as to determine whether the implementation of such a policy has helped reduce corporate investment-cash flow sensitivity. Empirical results suggest that the launching of the QFII program as an interim institutionalization strategy to attract foreign capital into Taiwan's securities markets has been successful in relaxing corporations' investment-cash flow sensitivity. [source] Behavioural Biases of Japanese Institutional Investors: fund management and corporate governanceCORPORATE GOVERNANCE, Issue 4 2005Megumi Suto This study examines the behavioural biases of Japanese institutional investors and discusses implications for their role in corporate governance, based on the findings of a questionnaire survey of fund managers carried out in 2003. Statistical analysis of the survey results reveals a short-term bias in fund managers' investment time horizons, herding and self-marketing to improve the appearance of portfolio performance under the pressure either of customers or of institutional restraints. We conclude that institutional investors' behaviour contradicts their role as shareholders. [source] Trustees, Institutional Investors and Ultimate BeneficiariesCORPORATE GOVERNANCE, Issue 3 2004Chris Mallin No abstract is available for this article. [source] Institutional Investors and Cross Border VotingCORPORATE GOVERNANCE, Issue 2 2003Article first published online: 19 MAR 200 No abstract is available for this article. [source] Editorial: Institutional Investors and the Growth of Global InfluenceCORPORATE GOVERNANCE, Issue 2 2002Christine Mallin [source] Redesigning Corporate Governance Structures and Systems for the Twenty First CenturyCORPORATE GOVERNANCE, Issue 3 2001Robert A.G. Monks How a corporation is governed has become in recent years an increasingly important element in how it is valued by the market place. McKinsey & Company in June 2000 published the results of an Investor Opinion Survey of attitudes about the corporate governance of portfolio companies. The survey gathered responses about investment intentions from over 200 institutions who together manage approximately $3.25 trillion in assets. Ranging from 17 per cent in the US and Britain to over 27 per cent in Venezuela, investors placed a specific premium on what was called "Board Governance". To put this into perspective, consider how greatly sales would have to increase, expenses be cut and margins improved to achieve a comparable impact on value. "For purposes of the survey, a well governed company is defined as having a majority of outside directors on the board with no management ties; holding formal evaluations of directors; and being responsive to investor requests for information on governance issues. In addition, directors hold significant stockholdings in the company, and a large proportion of directors' pay is in the form of stock options." This correlation of governance with market value by one of the most respected consulting companies in the world creates the foundations of a new language for management accountability. McKinsey has great credibility as a value-adding advisor to corporate managements. Governance is not a cause or a theology for McKinsey; it is an important element in the value of an enterprise. By getting the opinion of what we call Global Investors with portfolios of holdings on every continent, McKinsey has importantly impacted the cost of capital for all corporations henceforth. Admittedly, McKinsey's criteria of "board governance" are blunt. "Every organization attempting to accomplish something has to ask and answer the following question," writes Harvard Business School professor Michael C. Jensen in the introduction to his recent working paper: "What are we trying to accomplish? Or, put even more simply: When all is said and done, how do we measure better versus worse? Even more simply: How do we keep score... . I say long-term market value to recognize that it is possible for markets not to know the full implications of a firm's policies until they begin to show up.... Value creation does not mean succumbing to the vagaries of the movements in a firm's values from day to day. The market is inevitably ignorant of many of our actions and opportunities, at least in the short run...". Surprisingly little attention is paid to what we all intuitively know, that talented people are not entirely motivated by financial compensation. Directors therefore must pay special attention to creating an appropriate environment for stimulating optimum management performance. [source] Peer Effects in the Trading Decisions of Individual InvestorsFINANCIAL MANAGEMENT, Issue 2 2010Lilian Ng This study examines for evidence of peer effects in the trading decisions of individual investors from Mainland China, a country whose cultural and social structures are vastly different from those of Western countries. Cultural differences, as widely documented, play a significant role in social interactions and word-of-mouth behavior. In contrast to US studies, we find robust evidence that the trading decisions of Chinese investors are influenced, via word of mouth, by those of their peers who maintain brokerage accounts at the same branch, but not by those whose accounts are maintained at another branch located in the same city. [source] Institutional Investors and Shareholder LitigationFINANCIAL MANAGEMENT, Issue 2 2008Sergey S. Barabanov We examine whether institutional investors are able to avoid future litigation. Our results show that institutions provide a fiduciary role by decreasing or eliminating their positions in sued firms well before litigation begins. We also find that institutional groups with high monitoring ability (independent investment advisors and mutual funds) are more proactive in their trading behavior than are institutions with low monitoring ability (banks, insurance companies, and unclassified institutions such as endowments, foundations, and self-managed pension funds). We find that percentage changes in institutional ownership are correlated with public information available more than two quarters before litigation. [source] EFA Keynote Speech: "Corporate Governance and Corporate Social Responsibility: What Do Investors Care about?FINANCIAL REVIEW, Issue 4 2009What Should Investors Care about?" G34 Abstract This article is the keynote address from the Eastern Finance Association meeting in New Orleans in March 2007 with updated references and examples. In this keynote address, I discuss what we can learn about institutional investors' views on corporate governance and corporate social responsibility from research and surveys. [source] The Sarbanes-Oxley Act of 2002 and Market LiquidityFINANCIAL REVIEW, Issue 3 2008Pankaj K. Jain G14; M41 Abstract Investors rely heavily on the trustworthiness and accuracy of corporate information to provide liquidity to the capital markets. We find that the rash of financial scandals caused a severe deterioration in market liquidity in the form of wider spreads, lower depths, and a higher adverse selection component of spreads vis-à-vis their benchmark levels. Regulatory responses including the Sarbanes-Oxley Act of 2002 (SOX) had inconsequential short-term liquidity effects but highly significant and positive long-term liquidity effects. These liquidity improvements are positively associated with the improved quality of financial reports, several firm-specific variables (e.g., size), and market factors (e.g., price, volatility, volume). [source] Institutional Investors and Information Asymmetry: An Event Study of Self-Tender OffersFINANCIAL REVIEW, Issue 2 2003Michele O'Neill G14/G20/G32 Abstract Our research compares the asymmetric information costs of firms with low levels of institutional ownership to those with high levels. We use self-tender offers as an information event. Our results show that higher institutional ownership, particularly a higher number of institutional investors, is associated with a lower degree of informed trading. These results persist even after we control for differences in trading activity among our sample firms. [source] Are All Professional Investors Sophisticated?GERMAN ECONOMIC REVIEW, Issue 4 2010Lukas Menkhoff Institutional investors; investment advisors; individual investors; investment behavior Abstract. Existing empirical evidence is inconclusive as to whether professional investors show more sophisticated behavior than individual investors. Therefore, we study two important groups of professional investors and compare them with laymen by means of a survey covering about 500 investors. We find that some professionals, i.e. institutional investors, behave in a more sophisticated manner than laymen, whereas the less researched investment advisors seem to do even worse. Our survey approach complements available evidence due to its design: it compares professionals with (qualified) interested laymen, it covers six measures of sophisticated behavior, uses several control variables and strictly compares investment decisions in the private domain. [source] The impact of Investors in People: a case study of a hospital trustHUMAN RESOURCE MANAGEMENT JOURNAL, Issue 3 2002Irena Grugulis This article reports on case study research conducted in a hospital trust and explores the impact that the Investors in People award had on employees. Investors in People is widely seen as the principal mechanism for increasing workforce skills within a voluntarist system as well as supporting ,good' employment policies. Yet in this case study, as elsewhere, most of the ,soft' HR initiatives had existed prior to accreditation and the internal marketing of corporate value statements was met with both amnesia and cynicism. More worrying, training activity was focused on ,business need', which was defined in the narrowest sense, with the result that some employees had fewer opportunities for individual development. Motivation and commitment levels were high, staff were enthusiastic about their work and many actively engaged in training and development. But this owed little to Investors in People, and its impact here raises questions about its influence on skill levels more broadly. [source] The impact of Investors in People on employer-provided training, the equality of training provision and the ,training apartheid' phenomenonINDUSTRIAL RELATIONS JOURNAL, Issue 1 2008Kim Hoque ABSTRACT This article draws on data from WERS 2004 to provide a follow-up to previous research using WERS 98, which evaluated the relationship between Investors in People (IiP) and training. This follow-up is undertaken in order to consider whether the Standard, which was revised in 2000, is now more effective in ensuring that recognised workplaces genuinely engage in training activity. An evaluation is also undertaken of the Standard's new aim of ensuring equal opportunities with regard to training provision. In the event, the analysis demonstrates that the proportion of employees in IiP workplaces that have not received formal training did not change between 1998 and 2004, but employees were now less likely to disagree that managers at their workplaces encourage people to develop their skills. However, the analysis finds greater evidence of inequality of training provision in IiP workplaces than in non-IiP workplaces and that the Standard neither boosts training levels for typically disadvantaged employee groups, nor overcomes the ,training apartheid' phenomenon. [source] The Behavior and Performance of Foreign Investors in Emerging Equity Markets: Evidence from TaiwanINTERNATIONAL REVIEW OF FINANCE, Issue 3-4 2003Anchor Y. Lin This study investigates trading behavior and investment performance of foreign investors in 60 large-size firms listed on the Taiwan Stock Exchange. Strong evidence is found that foreign investors employ momentum strategies of buying past winners and selling past losers and favor large-size, high book-to-market, and high-tech stocks, while no evidence is found that foreign investors herd on market consensus. Findings show that foreign investors are short-term superior performers but long-term inferior performers. The short-term superior performance appears to be driven partially by price momentum of winners portfolios rather than by risk taking. After controlling for firm size, share turnover, and industry, foreigners' short-term performance in large-size, high-turnover, and high-tech stocks is better than it is in small-size, low-turnover, and non-high-tech stocks. [source] Baylor University Roundtable on The Corporate Mission, CEO Pay, and Improving the Dialogue with InvestorsJOURNAL OF APPLIED CORPORATE FINANCE, Issue 1 2010John Martin A small group of academics and practitioners discusses four major controversies in the theory and practice of corporate finance: ,What is the social purpose of the public corporation? Should corporate managements aim to maximize the profitability and value of their companies, or should they instead try to balance the interests of their shareholders against those of "stakeholder" groups, such as employees, customers, and local communities? ,Should corporate executives consider ending the common practice of earnings guidance? Are there other ways of shifting the focus of the public dialogue between management and investors away from near-term earnings and toward longer-run corporate strategies, policies, and goals? And can companies influence the kinds of investors who buy their shares? ,Are U.S. CEOs overpaid? What role have equity ownership and financial incentives played in the past performance of U.S. companies? And are there ways of improving the design of U.S. executive pay? ,Can the principles of corporate governance and financial management at the core of the private equity model,notably, equity incentives, high leverage, and active participation by large investors,be used to increase the values of U.S. public companies? [source] Identifying and Attracting the "right" Investors: Evidence on the Behavior of Institutional InvestorsJOURNAL OF APPLIED CORPORATE FINANCE, Issue 4 2004Brian Bushee This article summarizes the findings of research the author has conducted over the past seven years that aims to answer a number of questions about institutional investors: Are there significant differences among institutional investors in time horizon and other trading practices that would enable such investors to be classified into types on the basis of their observable behavior? Assuming the answer to the first is yes, do corporate managers respond differently to the pressures created by different types of investors, and, by implication, are certain kinds of investors more desirable from corporate management's point of view? What kinds of companies tend to attract each type of investor, and how does a company's disclosure policy affect that process? The author's approach identifies three categories of institutional investors: (1) "transient" institutions, which exhibit high portfolio turnover and own small stakes in portfolio companies; (2) "dedicated" holders, which provide stable ownership and take large positions in individual firms; and (3) "quasi-indexers," which also trade infrequently but own small stakes (similar to an index strategy). As might be expected, the disproportionate presence of transient institutions in a company's investor base appears to intensify pressure for short-term performance while also resulting in excess volatility in the stock price. Also not surprising, transient investors are attracted to companies with investor relations activities geared toward forward-looking information and "news events," like management earnings forecasts, that constitute trading opportunities for such investors. By contrast, quasi-indexers and dedicated institutions are largely insensitive to shortterm performance and their presence is associated with lower stock price volatility. The research also suggests that companies that focus their disclosure activities on historical information as opposed to earnings forecasts tend to attract quasi-indexers instead of transient investors. In sum, the author's research suggests that changes in disclosure practices have the potential to shift the composition of a firm's investor base away from transient investors and toward more patient capital. By removing some of the external pressures for short-term performance, such a shift could encourage managers to establish a culture based on long-run value maximization. [source] Informed Investors and the InternetJOURNAL OF BUSINESS FINANCE & ACCOUNTING, Issue 7-8 2010Amir Rubin Abstract:, During the last decade the Internet has become an increasingly important source for gathering company related information. We employ Wikipedia editing frequency as an instrument that captures the degree in which the population is engaged with the processing of company-related information. We find that firms whose information is processed by the population more frequently are associated with lower analysts' forecast errors, smaller analysts' forecast dispersions, and significant changes in bid-ask spreads on analysts' recommendation days. These results indicate that information processing over the Internet is related to the degree to which investors and analysts are informed about companies. [source] Enhancing Information for InvestorsJOURNAL OF CORPORATE ACCOUNTING & FINANCE, Issue 3 2010Cathy J. Cole Many publicly held companies provide financial information to investors in a variety of forms and formats. But not all companies provide the same level of information, or devote the same amount of resources to tailor information to users' needs. How can they provide a more user-focused view of the company's financial condition? © 2010 Wiley Periodicals, Inc. [source] Communicating Key Business Strategies to InvestorsJOURNAL OF CORPORATE ACCOUNTING & FINANCE, Issue 1 2001Cathy J. Cole Investors who understand where top management is taking the company,and how you're doing it,are more likely to have confidence in your firm. They'll be more willing to stick with you when times are bad. But how does your firm explain its objectives and strategies to investors? The author discusses one method that you may have over-looked, and includes a useful checklist. © 2001 John Wiley & Sons, Inc. [source] Value Relevance of IAS 27 (2003) Revision on Presentation of Non-Controlling Interest: Evidence From Hong KongJOURNAL OF INTERNATIONAL FINANCIAL MANAGEMENT & ACCOUNTING, Issue 2 2009Stella So This study investigates the value relevance of the IAS 27 Consolidated and Separate Financial Statements (2003) revision, which requires the presentation of non-controlling interest as components of equity and earnings. The investigation is carried out in the context of companies publicly listed in Hong Kong during 2004,2006 where IAS 27 (2003) is replaced by the local but word-for-word equivalent standard of HKAS 27 (2004). The results of this study provide strong evidence that the revision has significant value relevance in changing investors' perception about non-controlling interest, which is no longer perceived as liabilities. Investors have apparently not been confused by the revised presentation of non-controlling interest within equity and continue to associate company values only with the equity amount actually owned by the parent company's shareholders. The results of this study give support for the accounting regulator's first move towards the economic unit theory of consolidated financial statements. [source] Analyst Following, Institutional Investors and Pricing of Future Earnings: Evidence from KoreaJOURNAL OF INTERNATIONAL FINANCIAL MANAGEMENT & ACCOUNTING, Issue 3 2008Bobae Choi This paper examines the role of sophisticated investors in pricing future earnings in Korea. Using the future earnings response coefficient (FERC) model, we test the effect of analyst following and institutional ownership on the informativeness of stock returns for future earnings. We find that the informativeness of stock returns for future earnings, measured as the FERC, increases with the analyst following and institutional ownership. We also investigate how the recently introduced Regulation Fair Disclosure in Korea affects the informativeness of stock returns for future earnings and its relation with analyst following and institutional ownership. The results show that the regulation decreases the FERC in general and its relation with analyst following, suggesting that analysts' superior ability is impaired after the regulation. [source] Organizational Differentiation through Badging: Investors in People and the Value of the SignJOURNAL OF MANAGEMENT STUDIES, Issue 8 2002Emma Bell This paper explores the meaning of the state,sponsored initiative for people management, Investors in People (IiP), through deconstruction of the signifiers that represent its articulation. Semiotic analysis is employed in order to consider the sign,value that is associated with IiP and to explore the symbolic meaning of cultural artefacts, such as ,the badge' and ,the flag', which feature in the experience of managers and employees in six case study organizations. This post,structuralist approach enables us to focus on the discursive construction of textual meaning surrounding IiP as a ,readerly' as well as a writerly project. It is suggested that organizations are subject to a process of image production and consumption. This process requires them to seek differentiation from other organizations by acquiring quality initiatives that constitute a system of objects. In particular, the meaning of IiP signifiers as emblems of achievement is explored and the extent to which these become simulacra is considered. It is argued that there is a significant gap between writerly intentions as to what quality initiatives ought to signify and their organizational, context,bound, indeterminate meanings. By elucidating the conditions of IiP's signification it is shown that this discourse has the potential to undermine the very philosophy it asserts. Finally, drawing on this analysis, we outline the way that badge acquisition develops over time through processes of accumulation and adaptation. [source] Born Global Firms and Informal Investors: Examining Investor CharacteristicsJOURNAL OF SMALL BUSINESS MANAGEMENT, Issue 4 2008Øystein Moen A "Born Global" is a new venture with a global niche market focus from day one. Many of these firms experience high growth rates, but also, a considerable need for funding. This study contrasts informal investors involved in born global firms ("Born Global Investors") with other informal investors. The underlying thesis is that the behavior of these investors reflects their investment philosophy, at least on a differential basis. The results suggest that born global investors differ from other informal investors in terms of deal origin, investment size, and exit preferences. Their experience as managers of large firms seems to be a particularly important factor, increasing investment capacity (income and fortune), while personal and professional networks influence the access to information about investment opportunities. The importance of these results for the development of born global firms is discussed. [source] | ||||||||||||||||||||||||||||||||||||||||