Author: Publisher: ISBN: Category : Languages : en Pages : 78
Book Description
A rights issue is one of the ways through which organisations raise funds to finance their investment plans. The purpose of this study was to investigate the use of rights issues in raising capital. The study was guided by four research objectives namely: to determine the factors that lead organisations to choose rights issues; to determine the factors that influence the success of rights issues; to determine the challenges encountered during rights issues and the measures that can be taken to enhance the use of rights issues. The study employed a descriptive approach using primary data. The population for this study consisted of all the rights issues made in the Kenyan capital market. From this population a sample was selected, that comprised rights issues made during the period 2004 to 2012. A questionnaire was designed and used to collect primary data for the sample, targeting a total of 30 respondents. The respondents were key informants in the companies that made rights issues during the period of study, as well as financial consultants involved in rights issue transactions. Data collected was analysed using quantitative analysis techniques. It was entered into a statistical software (Statistical Package for Social Sciences (SPSS)) and analysed using frequency distribution,mean,standard deviation and coefficient of variation. A total of 18 rights issues were made during the period studied. With the exception of two issues; all the other issues were oversubscribed. The study identified the drivers to the use of rights issues as: the presence of a favourable regulatory environment; a high level of certainty and the need to take advantage of temporarily high stock prices. Low floatation costs and the need to preserve ownership and control were not rated as very significant in the decision to use rights issues. The factors that influence the success of rights issues were identified as: high shareholder take up the performance of the issuing firm; the purpose for which funds were raised and the trend of the stock market at the time of the issue. The challenges to financing through rights issues are: determining an appropriate timing; limited investor base; high future dividend payment; the high cost of contacting each shareholder and the negative effect on stock prices. The measures to address the challenges to rights issues were identified as: selection of an optimal subscription price; analysing the shareholder structure and the presence of underwriting. The study found that there had been a rise in the use of rights issues in the Kenyan market, and suggests that more organisations should use rights issues to raise funds. To achieve this, the study recommends that the Capital Markets Authority should encourage and facilitate the use of rights issues by creating a regulatory framework that is not complex for organisations to comply with. The study also recommends that future studies should investigate the long run effects of rights issues on stock prices and firm performance in order to determine whether there are any negative long run effects that organisations should be aware and therefore put preventive measures in place after making rights issues.
Author: Aswath Damodaran Publisher: John Wiley & Sons ISBN: 1118808932 Category : Business & Economics Languages : en Pages : 663
Book Description
Aswath Damodaran, distinguished author, Professor of Finance, and David Margolis, Teaching Fellow at the NYU Stern School of Business, has delivered the newest edition of Applied Corporate Finance. This readable text provides the practical advice students and practitioners need rather than a sole concentration on debate theory, assumptions, or models. Like no other text of its kind, Applied Corporate Finance, 4th Edition applies corporate finance to real companies. It now contains six real-world core companies to study and follow. Business decisions are classified for students into three groups: investment, financing, and dividend decisions.
Author: Pierre Vernimmen Publisher: John Wiley & Sons ISBN: 1118849299 Category : Business & Economics Languages : en Pages : 994
Book Description
Merging theory and practice into a comprehensive, highly-anticipated text Corporate Finance continues its legacy as one of the most popular financial textbooks, with well-established content from a diverse and highly respected author team. Unique in its features, this valuable text blends theory and practice with a direct, succinct style and commonsense presentation. Readers will be introduced to concepts in a situational framework, followed by a detailed discussion of techniques and tools. This latest edition includes new information on venture finance and debt structuring, and has been updated throughout with the most recent statistical tables. The companion website provides statistics, graphs, charts, articles, computer models, and classroom tools, and the free monthly newsletter keeps readers up to date on the latest happenings in the field. The authors have generously made themselves available for questions, promising an answer in seventy-two hours. Emphasizing how key concepts relate to real-world situations is what makes Corporate Finance a valuable reference with real relevance to the professional and student alike. Readers will gain insight into the methods and tools that shape the industry, allowing them to: Analyze investments with regard to hurdle rates, cash flows, side costs, and more Delve into the financing process and learn the tools and techniques of valuation Understand cash dividends and buybacks, spinoffs, and divestitures Explore the link between valuation and corporate finance As the global economy begins to recover, access to the most current information and statistics will be required. To remain relevant in the evolving financial environment, practitioners will need a deep understanding of the mechanisms at work. Corporate Finance provides the expert guidance and detailed explanations for those requiring a strong foundational knowledge, as well as more advanced corporate finance professionals.
Author: Publisher: ISBN: Category : Languages : en Pages : 66
Book Description
The purpose of the study was to assess the effects of Basel III framework on capital adequacy requirement in commercial banks in Kenya. The study sought to address the following research questions: why are capital adequacy regulations important in commercial banks in Kenya? What challenges are commercial banks facing in the implementation of capital adequacy requirement? What measures have commercial banks taken to ensure compliance with the capital adequacy requirement? A descriptive survey design was applied to a population of 43 commercial banks operating in Kenya. The target population composed of the 159 management staff currently employed at the head offices of the various commercial banks in Kenya. The population was composed of Senior, Middle and Junior or Entry level Management staff. A sample of 30% was selected from within each group. Primary data was gathered using questionnaires which were dropped off at the bank?s head offices and picked up later when the respondents had filled the questionnaires.Descriptive analysis was used to analyze quantitative data while content analysis was used to analyse qualitative data. The findings show that capital adequacy requirement is important in commercial banks because it leads financial stability in the Kenyan economy, improves credit risk management techniques as poor credit risk management requires more capital and leads to reduced vulnerability to liquidity shocks due to the sound capitalisation policies being implemented under the Basel III framework. Findings also revealed that capital adequacy affected the balance sheet structure of the commercial banks in Kenya. Smaller banks without the minimum capital requirements in their balance sheet would be required to merge with other smaller banks or seek additional capital injection from investors. Middle tier banks have gone to the stock markets to seek additional capital through rights and bond issue. Large multinational banks have sought capital injections from their parent company. Hence capital adequacy have has significantly changed the balance sheet structure of commercial banks in Kenya. The commercial banks in Kenya have deployed various strategies to comply with the looming capital adequacy requirements. These strategies include cutting back on lending, withholding dividend payments, aggressively increasing their interest income and other revenues through various promotions, offers and products in the lending market. This has been combined with cost cutting measures so as to increase net profits hence improving the capital base through retained earnings. Some commercial banks listed in the Nairobi Securities Exchange have issued additional shares through rights issues in order to ensure compliance with the capital adequacy requirement. The study recommends that banks should continue the pursuit of various strategies to ensure that they are in compliance with Basel III requirements and the Central Bank of Kenya?s Prudential Guidelines. This will be achieved through the expertise and involvement of the Asset and Liability Management Committee. The staff of this committee should be drawn from mainly the finance, legal, compliance and treasury departments. Compliance with the capital requirements will lead to a safety net for all commercial banks as the additional capital will act as a cushion that absorbs losses in case of distress in the commercial banking sector.
Author: Patrick A. Gaughan Publisher: John Wiley & Sons ISBN: 1119380731 Category : Business & Economics Languages : en Pages : 819
Book Description
The essential M&A primer, updated with the latest research and statistics Mergers, Acquisitions, and Corporate Restructurings provides a comprehensive look at the field's growth and development, and places M&As in realistic context amidst changing trends, legislation, and global perspectives. All-inclusive coverage merges expert discussion with extensive graphs, research, and case studies to show how M&As can be used successfully, how each form works, and how they are governed by the laws of major countries. Strategies and motives are carefully analyzed alongside legalities each step of the way, and specific techniques are dissected to provide deep insight into real-world operations. This new seventh edition has been revised to improve clarity and approachability, and features the latest research and data to provide the most accurate assessment of the current M&A landscape. Ancillary materials include PowerPoint slides, a sample syllabus, and a test bank to facilitate training and streamline comprehension. As the global economy slows, merger and acquisition activity is expected to increase. This book provides an M&A primer for business executives and financial managers seeking a deeper understanding of how corporate restructuring can work for their companies. Understand the many forms of M&As, and the laws that govern them Learn the offensive and defensive techniques used during hostile acquisitions Delve into the strategies and motives that inspire M&As Access the latest data, research, and case studies on private equity, ethics, corporate governance, and more From large megadeals to various forms of downsizing, a full range of restructuring practices are currently being used to revitalize and supercharge companies around the world. Mergers, Acquisitions, and Corporate Restructurings is an essential resource for executives needing to quickly get up to date to plan their own company's next moves.
Author: Thomas E. Copeland Publisher: ISBN: 9781292021584 Category : Corporations Languages : en Pages : 924
Book Description
This classic textbook in the field, now completely revised and updated, provides a bridge between theory and practice. Appropriate for the second course in Finance for MBA students and the first course in Finance for doctoral students, the text prepares students for the complex world of modern financial scholarship and practice. It presents a unified treatment of finance combining theory, empirical evidence and applications.
Author: Robert F. Bruner Publisher: John Wiley & Sons ISBN: 1118436393 Category : Business & Economics Languages : en Pages : 1056
Book Description
A comprehensive guide to the world of mergers and acquisitions Why do so many M&A transactions fail? And what drives the success of those deals that are consummated? Robert Bruner explains that M&A can be understood as a response by managers to forces of turbulence in their environment. Despite the material failure rates of mergers and acquisitions, those pulling the trigger on key strategic decisions can make them work if they spend great care and rigor in the development of their M&A deals. By addressing the key factors of M&A success and failure, Applied Mergers and Acquisitions can help readers do this. Written by one of the foremost thinkers and educators in the field, this invaluable resource teaches readers the art and science of M&A valuation, deal negotiation, and bargaining, and provides a framework for considering tradeoffs in an effort to optimize the value of any M&A deal.
Author: Sue Joy Wright Publisher: ISBN: 9780170261951 Category : Business enterprises Languages : en Pages : 720
Book Description
Business Analysis and Valuation has been developed specifically for students undertaking accounting Valuation subjects. With a significant number of case studies exploring various issues in this field, including a running chapter example, it offers a practical and in-depth approach. This second edition of the Palepu text has been revitalised with all new Australian content in parts 1-3, making this edition predominantly local, while still retaining a selection of the much admired and rigorous Harvard case studies in part 4. Retaining the same author team, this new edition presents the field of valuation accounting in the Australian context in a clear, logical and thorough manner.
Author: Publisher: ISBN: Category : Languages : en Pages : 80
Book Description
The Advocate is a lesbian, gay, bisexual, transgender (LGBT) monthly newsmagazine. Established in 1967, it is the oldest continuing LGBT publication in the United States.
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