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The Impact of a Break-Through Rule on European Firms
Bennedsen, Morten; Nielsen, Kasper - 2002
We analyze the impact of a 75 pct. Break-Through rule on 1,035 European firms with dual class shares. In 3-5 pct. of the firms the controlling owners incur a direct loss of control, whereas in additional 11-17 pct. of the firms the controlling owners are likely to incur a control loss. Firms in...
Persistent link: https://www.econbiz.de/10012142260
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The Principle of Proportionality: Separating the Impact of Dual Class Shares, Pyramids and Cross-ownership on Firm Value Across Legal Regimes in Western Europe
Bennedsen, Morten; Meisner, Kasper, Nielsen - 2006
Recent policy initiatives within the harmonization of European company laws have promoted a so-called "principle of proportionality" through proposals that regulate mechanisms opposing a proportional distribution of ownership and control. We scrutinize the foundation for these initiatives by...
Persistent link: https://www.econbiz.de/10012142316
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Sovereign wealth fund investment patterns and performance
Bortolotti, Bernardo; Fotak, Veljko; Megginson, William L. - 2009
We examine 802 investments by 33 Sovereign Wealth Funds (SWFs) in publicly traded companies between May 1985 and November 2009, and find that SWFs tend to invest in large, levered, profitable growth firms, usually headquartered in an OECD country. Announcements of SWF investments yield...
Persistent link: https://www.econbiz.de/10008810291
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The deep-pocket effect of internal capital markets
Boutin, Xavier; Cestone, Giacinta; Fumagalli, Chiara; … - 2009
We provide evidence suggesting that incumbents' access to group deep pockets has a negative impact on entry in product markets. Relying on a unique French data set on business groups, our paper presents three major findings. First, the amount of cash holdings owned by incumbent-affiliated groups...
Persistent link: https://www.econbiz.de/10008824490
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Disentangling the effect of private and public cash flows on firm value
Scherrer, Cristina Mabel; Fernandes, Marcelo - 2016
This paper presents a simple model for dual-class stock shares, in which common shareholders receive both public and private cash flows (i.e. dividends and any private benefit of holding voting rights) and preferred shareholders only receive public cash flows (i.e. dividends). The dual-class...
Persistent link: https://www.econbiz.de/10011523988
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Carbon boards and transition risk: explicit and implicit exposure implications for total stock returns and dividend payouts
Mazzarano, Matteo; Guastella, Gianni; Pareglio, Stefano; … - 2021
The Security and Exchange Commission (SEC) has considered climate change as a risk issue since 2010. Several emission disclosure initiatives exist aimed at informing investors about the financial risks associated with a zero or low carbon transition. Stricter regulations, particularly in a few...
Persistent link: https://www.econbiz.de/10012694482
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Environmental damage news and stock returns : evidence from Latin America
Cavallo, Eduardo A.; Cepeda, Ana; Panizza, Ugo - 2024
This paper studies the interplay between environmental performance and financial valuation of firms in Latin America and the Caribbean. We provide insights into how environmental considerations are integrated into financial decision-making and investor behavior by analyzing the stock market...
Persistent link: https://www.econbiz.de/10014529773
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Postprivatization corporate governance : the role of ownership structure and investor protection
Boubakri, Narjess; Cosset, Jean-Claude; Guedhami, Omrane - 2003
We investigate the role of ownership structure and investor protection in postprivatization corporate governance. We find that the government relinquishes control over time, mainly to the benefit of local institutions and foreign investors. We also show that private ownership tends to...
Persistent link: https://www.econbiz.de/10011591071
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Capital structure and financial flexibility : expectations of future shocks
Lambrinoudakis, Costas; Neumann, Michael; Skiadopoulos, … - 2014 - This draft: 3 October 2014
-specific shocks affect the firm's leverage. We extract the expectations of small and large future shocks from the market prices of … equity options. We find that expectations for future shocks decrease leverage and are statistically significant even when we …
Persistent link: https://www.econbiz.de/10010472840
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Corporate debt and investment in the post-Covid world
Heresi, Rodrigo; Powell, Andrew - 2022
We study the relationship between corporate debt, corporate risk and firm-level investment, using a sample of 25 …,000 listed companies across 47 countries over the last two decades. We find higher leverage reduces investment but show the … volatility do not suffer a debt overhang at all, while the effect is exacerbated for riskier firms. Debt overhang effects worsen …
Persistent link: https://www.econbiz.de/10014495148