Home About us Contact
|
Home About us Contact | ||
|
|
||
Monitoring Role (monitoring + role)
Selected AbstractsA Monitoring Role for Deviations from Absolute Priority in Bankruptcy ResolutionFINANCIAL MARKETS, INSTITUTIONS & INSTRUMENTS, Issue 5 2003By Dina Naples Layish Firms that have successfully reorganized under Chapter 11 of the bankruptcy laws of the United States frequently award shares of common stock in the reorganized firm to pre-bankruptcy shareholders, even though pre-bankruptcy creditors' claims are not fully satisfied. Using a sample of large publicly traded firms, these deviations from absolute priority (DAPR) are found to be positively related to the severity of agency costs within a financially distressed firm. US bankruptcy laws may exacerbate these agency costs by granting exclusivity to management during the reorganization period. Firms in which outside shareholders are more concentrated have a lower occurrence of DAPR indicating that blockholders provide an effective monitoring mechanism for controlling managerial behavior during reorganization. On the other hand, firms without this monitoring mechanism have a higher probability of DAPR indicating that creditors attempt to control managerial behavior by providing them with some sort of financial compensation via their equity holding in the firm. Finally, the evidence indicates that DAPR can be used to mitigate the hold-up problem resulting from voting rights granted to both junior and senior claimants of the firm by US bankruptcy laws. [source] An Emerging Market's Reaction to Initial Modified Audit Opinions: Evidence from the Shanghai Stock Exchange,CONTEMPORARY ACCOUNTING RESEARCH, Issue 3 2000CHARLES J. P. CHEN Abstract This study investigates the valuation effect of modified audit opinions (MAOs) on the emerging Chinese stock market. Here, the term MAO refers to both qualified opinions and unqualified opinions with explanatory notes. The latter can be considered an alternative form of a qualified opinion in China. The institutional setting in China enables us to find compelling evidence in support of the monitoring role of independent auditing as an institution. First, we find a significantly negative association between MAOs and cumulative abnormal returns after controlling for effects of other concurrent announcements. Further, results from a by-year analysis suggest that investors did not reach negative consensus about MAOs' valuation effect until the second year, exhibiting the learning process of a market without prior exposure to MAOs. Second, we do not observe significant differences between market reaction to non-GAAP- and GAAP-violation-related MAOs. Third, no significant difference is found between market reaction to qualified opinions and market reaction to unqualified opinions with explanatory notes. [source] Is CEO Duality Always Negative?CORPORATE GOVERNANCE, Issue 2 2009An Exploration of CEO Duality, Ownership Structure in the Arab IPO Context ABSTRACT Manuscript type: Empirical Research Question/Issue: This paper examines the relationships between initial public offering (IPO) underpricing, CEO duality, and strategic ownership in 12 Arab countries of the Middle East and North Africa (MENA) region. Research Findings/Results: Using all IPOs from January 2000 until the end of July 2007, we document an average IPO underpricing of 184.1 per cent. Underpricing is higher in IPO firms that have CEO duality. However, strategic shareholders, such as corporations and other industry-related investors, are likely to play a monitoring role whereas underpricing is found to be lower in firms with both CEO duality and strategic shareholder ownership. Moreover, the negative relation between underpricing and strategic blockholding is greater for foreign strategic ownership than it is for domestic strategic ownership. Theoretical Implications: This paper examines the level and determinants of IPO underpricing in the MENA region. It provides evidence on the role played by foreign strategic owners in reducing agency conflicts and information asymmetries within an environment where firms may be affected by the cultural issues related to political ties and family involvement. Practical Implications: Our results contribute to the existing debate on the appropriate regulations for an effective and stable financial system in Arab countries. They offer policy-makers additional evidence on the positive impact of market openness to foreign shareholders. [source] Endogenous ursodeoxycholic acid and cholic acid in liver disease due to cystic fibrosisHEPATOLOGY, Issue 6 2004Jeffery L. Smith Focal biliary cirrhosis causes significant morbidity and mortality in cystic fibrosis (CF). Although the mechanisms of pathogenesis remain unclear, bile acids have been proposed as potential mediators of liver injury. This study examined bile acid composition in CF and assessed altered bile acid profiles to determine if they are associated with incidence and progression of liver injury in CF-associated liver disease (CFLD). Bile acid composition was determined by gas,liquid chromatography/mass spectrometry in bile, urine, and serum samples from 30 children with CFLD, 15 children with CF but without liver disease (CFnoLD), and 43 controls. Liver biopsies from 29 CFLD subjects were assessed histologically by grading for fibrosis stage, inflammation, and disruption of the limiting plate. A significantly greater proportion of endogenous biliary ursodeoxycholic acid (UDCA) was demonstrated in CFnoLD subjects vs. both CFLD subjects and controls (2.4- and 2.2-fold, respectively; ANOVA, P = .04), and a 3-4 fold elevation in endogenous serum UDCA concentration was observed in both CFLD subjects and CFnoLD subjects vs. controls (ANOVA, P < .05). In CFLD, there were significant correlations between serum cholic acid and hepatic fibrosis, inflammation, and limiting plate disruption as well as the ratio of serum cholic acid/chenodeoxycholic acid to hepatic fibrosis, inflammation, and limiting plate disruption. In conclusion, elevated endogenous UDCA in CFnoLD suggests a possible protective role against liver injury in these patients. The correlation between both cholic acid and cholic acid/chenodeoxycholic acid levels with histological liver injury and fibrosis progression suggests a potential monitoring role for these bile acids in CFLD. (HEPATOLOGY 2004;39:1673,1682.) [source] AUTOMATICALLY OPERATING RADARS FOR MONITORING INSECT PEST MIGRATIONSINSECT SCIENCE, Issue 4 2002Alistair Drake Abstract, Over the last three decades, special-purpose "entomological" radars have contributed much to the development of our understanding of insect migration, especially of the nocturnal migrations at altitudes of up to , 1 km that are regularly undertaken by many important pest species. One of the limitations of early radar studies, the difficulty of maintaining observations over long periods, has recently been overcome by the development of automated units that operate autonomously and transmit summaries of their observations to a base laboratory over the public telephone network. These relatively low-cost Insect Monitoring Radars (IMRs) employ a novel "ZLC" configuration that allows high quality data on the migrants' flight parameters and identity to be acquired. Two IMRs are currently operating in the semi-arid inland of eastern Australia, in a region where populations of migrant moths (Lepidoptera) and Australian plague locusts Chortoicetes terminifera (Orthoptera) commonly originate, and some examples of outputs from one of these units are presented. IMRs are able to provide the data needed to characterize a migration system, i.e. to estimate the probabilities of migration events occurring in particular directions at particular seasons and in response to particular environmental conditions and cues. They also appear capable of fulfilling a "sentinel" role for pest-management organisations, alerting forecasters to major migration events and thus to the likely new locations of potential target populations. Finally, they may be suitable for a more general ecological monitoring role, perhaps especially for quantifying year-to-year variations in biological productivity. [source] Proxy contest, board reelection, and managerial turnover,yes, the proxy contest outcome matters,MANAGERIAL AND DECISION ECONOMICS, Issue 1 2005Gili Yen In a previous study based on a matched sample analysis, it is found that in Taiwan top management turnover rate for the listed firms in the presence of a proxy contest is much higher than the ones without a proxy contest. In other words, the hypothesis of job security has gained empirical support. Taking account of the proxy contest outcomes, the present study extends the sample years, i.e. 1994,1999, to further examine the impact of proxy contest on managerial turnover. In conformity with expectations, the major empirical findings can be summarized as follows: the highest turnover rate of top management is observed in the firms of which the dissidents win majority seats; the second highest turnover rate is observed in the firms of which the dissidents win some seats; whereas the lowest turnover rate is observed in the firms of which the dissidents win no seats. Empirical findings of this kind provide further support to the view that proxy contest has played an effective monitoring role in disciplining incumbent management. Copyright © 2004 John Wiley & Sons, Ltd. [source] Institutional Investors and Executive CompensationTHE JOURNAL OF FINANCE, Issue 6 2003Jay C. Hartzell We find that institutional ownership concentration is positively related to the pay-for-performance sensitivity of executive compensation and negatively related to the level of compensation, even after controlling for firm size, industry, investment opportunities, and performance. These results suggest that the institutions serve a monitoring role in mitigating the agency problem between shareholders and managers. Additionally, we find that clientele effects exist among institutions for firms with certain compensation structures, suggesting that institutions also influence compensation structures through their preferences. [source] DO MULTIPLE LARGE SHAREHOLDERS PLAY A CORPORATE GOVERNANCE ROLE?THE JOURNAL OF FINANCIAL RESEARCH, Issue 4 2009EVIDENCE FROM EAST ASIA Abstract We examine the governance role of multiple large shareholder structures (MLSS) to determine their valuation effects in a sample of 1,252 publicly traded firms from nine East Asian economies. We find that the presence, number, and size of multiple large shareholders are associated with a significant valuation premium. Our results also show that the identity of MLSS influences corporate value and that the valuation effects of MLSS are more pronounced in firms with greater agency costs. Our results imply that MLSS play a valuable monitoring role in curbing the diversion of corporate resources. [source] | ||||||||||