Zhongzhi (Lawrence) He, Martin Kusy, Deepak Singh and Samir Trabelsi
The Canadian mutual fund setting is unique in that two governance mechanisms – corporate and trust – coexist. This study empirically examines the impact of each mechanism on fund…
Abstract
The Canadian mutual fund setting is unique in that two governance mechanisms – corporate and trust – coexist. This study empirically examines the impact of each mechanism on fund fees and performance. We find that corporate class funds charge higher fees but deliver superior fee-adjusted returns than trust funds. We then analyze the impact of various board characteristics on fees and performance for corporate class funds. We find that a board with smaller size, CEO duality, and a higher percentage of independent directors is more likely to charge lower fees. In addition, smaller boards are strongly associated with higher fee-adjusted performance. Our study supports agency theory over stewardship theory and provides valuable guidelines for Canadian investors and regulatory agencies.
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Airworthiness to an Insurer means basically one thing and that is safety. Hopefully, despite considerations of the economic viability of an aircraft for the job in question it…
Abstract
Airworthiness to an Insurer means basically one thing and that is safety. Hopefully, despite considerations of the economic viability of an aircraft for the job in question it basically means the same to the Aviation Industry. Product safety is a goal at which manufacturers have obviously been aiming since the birth of Aviation technology and there is an ever increasing contemporary public concern over the safety of manufactured devices to which it is exposed. An American friend once told me that he supposed the most intriguing expression of such concern dates from the Nineteenth Century when a convicted murderer by the name of Palmer was led to the gallows. As he mounted the steps he looked at the lethal device and uttered as his last words “Are you quite sure it is safe?”. I am not proposing to suggest that an aircraft is as lethal as this, but there are very few other situations where a person is so deprived of any control over his destiny than when he is sitting in a metal cylinder proceeding through the air at high altitude and high speed. It is no wonder that the three martini lunch is a favourite with passengers.
Carlos Noronha, Jieqi Guan and Jing Fan
This study aims to investigate the relationship between corporate social contribution measures and investors’ reaction under the effect of corporate governance for firms listed in…
Abstract
Purpose
This study aims to investigate the relationship between corporate social contribution measures and investors’ reaction under the effect of corporate governance for firms listed in China, the largest emerging economy in the world. Corporate social contribution is examined from an informative perspective by using a financial indicator – social contribution value per share (SCVPS) brought up by the Shanghai Stock Exchange in 2008.
Design/methodology/approach
Data are obtained from two channels: financial information during 2007-2015 generated from database and social accounting information manually collected from the 2007-2015 annual reports and social reports.
Findings
It is predicted that investors’ reaction toward corporate social contribution becomes stronger for companies with higher corporate governance quality.
Practical implications
This paper is one of the first to use Chinese SCVPS data to indicate the informativeness of social contribution toward firm value. It can serve as a valuable reference to both investors and companies in terms of the issue of social contribution.
Social implications
The study highlights the importance of social contribution on firm value by using an empirical approach in the Chinese market. The study can be used as a reference for many other developing countries in the world.
Originality/value
The findings of this study can provide guidance to investors on how to evaluate a firm’s social performance and encourage companies to improve the transparency of their social reporting, as well as the quality of corporate governance.
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E.R. Major, BSc(Eng), FIMech. E, FSLAET FRAeS and FRSA
In my introductory article, “Airworthiness — A Systems Approach”, last March, I expressed the hope that eminent engineers from all the disciplines and activities on which “total…
Abstract
In my introductory article, “Airworthiness — A Systems Approach”, last March, I expressed the hope that eminent engineers from all the disciplines and activities on which “total airworthiness” (my phrase) depends, would be persuaded by Aircraft Engineering to contribute articles on their own specialisations.
The price of a company's stock affects many aspects of its operations, ranging from access to capital to executive compensation to acquisition strategy. Unfortunately, too few…
Abstract
The price of a company's stock affects many aspects of its operations, ranging from access to capital to executive compensation to acquisition strategy. Unfortunately, too few managers understand why stock prices are important and what is a high or low price. The authors provide a model of stock price performance, examine the link to business unit profitability, and suggest some steps to improve your company's market valuation.
Filip Lievens, Robert P. Tett and Deidra J. Schleicher
Exercises are key components of assessment centers (ACs). However, little is known about the nature and determinants of AC exercise performance. The traditional exercise paradigm…
Abstract
Exercises are key components of assessment centers (ACs). However, little is known about the nature and determinants of AC exercise performance. The traditional exercise paradigm primarily emphasizes the need to simulate task, social, and organizational demands in AC exercises. This chapter draws on trait activation theory in proposing a new AC exercise paradigm. First, we develop a theoretical framework that addresses the complexity of situational characteristics of AC exercises as determinants of AC performance. Second, we argue for planting multiple stimuli within exercises as a structured means of eliciting candidate behavior. Third, we show how the new paradigm also has key insights for the rating part of ACs, namely, in selecting dimensions, designing behavioral checklists, screening assessors, and training assessors. Finally, the impact of this new AC exercise paradigm is anticipated on important AC outcomes such as reliability, internal/external construct-related validity, criterion-related validity, assessee perceptions, and feedback effectiveness.
The aim of this paper is to study both the information content of accounting figures and the speed at which the new information is incorporated into stock prices.
Abstract
Purpose
The aim of this paper is to study both the information content of accounting figures and the speed at which the new information is incorporated into stock prices.
Design/methodology/approach
The sample is composed of 117 overnight announcements published by Reuters during the period 2001‐2003. For every date, the event is classified into one of three categories: good news, bad news or no news. The paper uses intraday event study methodology to examine market reaction just before and just after the event.
Findings
The intraday analysis reveals several results. Firstly, investors react positively to good news and negatively to bad news. Secondly, abnormal returns dissipate within 15 min. Thirdly, prices converge to equilibrium more quickly for good news than for bad news. Fourthly, we present evidence of price reversal 30 min following bad news announcements. Finally, earnings releases are accompanied by a rise in volume which remains even after the equilibrium price is attained.
Research limitations/implications
Price discovery is analyzed only in the stock market. It is pertinent to verify if the option market and foreign markets can contribute to the incorporation of new information into stock prices.
Practical implications
This work can help investors to determine their trading strategies around earnings announcements. The paper shows that it is not possible to realize trading profits after 15 min following the time of the announcement.
Originality/value
The study contributes to both financial accounting and microstructure literature. First, it focuses on the information content of accounting figures using very short horizon (intraday analysis). Second, the paper sheds light on the role of the Euronext preopening period in the incorporation of the overnight information flow.
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Leviticus Mensah, Richard Arhinful and Jerry Seth Owusu-Sarfo
The purpose of this study was to leverage agency theory to examine the impact of board attributes on cash flow management in Ghana’s financial institutions.
Abstract
Purpose
The purpose of this study was to leverage agency theory to examine the impact of board attributes on cash flow management in Ghana’s financial institutions.
Design/methodology/approach
Data for the study was collected from the annual published financial statements of selected financial institutions, which were obtained from their respective websites. The sampling technique used was purposive, resulting in the selection of 15 financial institutions in Ghana, of which 10 were listed on the Ghana Stock Exchange and 5 were non-listed. The study covered a period of 10 years, ranging from 2011 to 2020. The two-step generalized method of moments estimation was used to determine the relationship between the board attributes and cash flow management.
Findings
The study found that board size had a positive and significant influence on net cash flow from operating, investing and financing activities. The study also discovered that the proportion of nonexecutive directors had a positive and significant influence on net cash flow from operating, investing and financing activities. In addition, it was revealed that the proportion of female directors on the board exhibited a positive and significant influence on net cash flow from operating activities but a negative and significant influence on net cash flow from investing and financing activities.
Practical implications
The study recommends increasing female representation on corporate boards to 25%, as women bring valuable skills, knowledge and experience that positively impact the financial institutions’ cash flows.
Originality/value
This study focused on the impact of board attributes on cash flow management within Ghana. It explored how corporate governance affects strategic decisions related to cash flow management, contributing original insights to this field of research.
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After briefly discussing the two major approaches to the study of tourism (theoretical “why” and practical “how”), and two of their respective protagonists (Tribe and Aramberri)…
Abstract
After briefly discussing the two major approaches to the study of tourism (theoretical “why” and practical “how”), and two of their respective protagonists (Tribe and Aramberri), the focus of this chapter turns to the use of paradigms by the former group. First, the meaning of paradigm is explored and examples are provided of paradigms and paradigm shifts in tourism research. However, Aramberri challenges this theoretical position by asserting that such ideological frameworks are not paradigms at all, and are, at best, postmodern mantras. He further argues that such muddled thinking can be overcome once tourism becomes a scientific discipline, a stance firmly rejected by the theoreticians. Thereafter, the use of the word “paradigm” is examined in relation to conferences, research, and shifts, as well as such major tourism perspectives as authenticity, strangerhood, play, and conflict.