The Relations Between Institutional Equity Ownership, Price Responsiveness, and Accounting Disclosures Quality PDF Download

Author: University Microfilms International (Ann Arbor, MI)
Publisher:
ISBN:
Category :
Languages : en
Pages : 112

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Author: Renee Hall Price
Publisher:
ISBN:
Category :
Languages : en
Pages : 226

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Author: Renee A. Price
Publisher:
ISBN:
Category :
Languages : en
Pages : 44

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Rather than helping to quot;level the playing fieldquot; between uninformed and informed investors, an increase in the precision of publicly released financial statement information may be more useful to informed investors in valuing a firm. I find that the price responsiveness to earnings which is jointly associated with greater equity ownership by informed (institutional) investors and increased financial statement disclosure quality (as measured by the Association for Investment and Management Research industry committees) is significantly greater than responsiveness in the absence of quality increase, or responsiveness when quality has increased but institutional ownership is low. Greater responsiveness under the condition of quality increase and high institutional ownership is consistent with informed investors making greater use of accounting disclosures to form more precise earnings expectations. I also find that price responsiveness to earnings is decreasing in institutional ownership, consistent with institutional investors making greater use of alternative non-earnings information. This alternative information may be privately acquired, or obtained through costly use of financial statements.

Author:
Publisher:
ISBN:
Category : Dissertations, Academic
Languages : en
Pages : 790

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Author: Pedro Matos
Publisher: CFA Institute Research Foundation
ISBN: 1944960988
Category : Business & Economics
Languages : en
Pages : 80

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This survey examines the vibrant academic literature on environmental, social, and governance (ESG) investing. While there is no consensus on the exact list of ESG issues, responsible investors increasingly assess stocks in their portfolios based on nonfinancial data on environmental impact (e.g., carbon emissions), social impact (e.g., employee satisfaction), and governance attributes (e.g., board structure). The objective is to reduce exposure to investments that pose greater ESG risks or to influence companies to become more sustainable. One active area of research at present involves assessing portfolio risk exposure to climate change. This literature review focuses on institutional investors, which have grown in importance such that they have now become the largest holders of shares in public companies globally. Historically, institutional investors tended to concentrate their ESG efforts mostly on corporate governance (the “G” in ESG). These efforts included seeking to eliminate provisions that restrict shareholder rights and enhance managerial power, such as staggered boards, supermajority rules, golden parachutes, and poison pills. Highlights from this section: · There is no consensus on the exact list of ESG issues and their materiality. · The ESG issue that gets the most attention from institutional investors is climate change, in particular their portfolio companies’ exposure to carbon risk and “stranded assets.” · Investors should be positioning themselves for increased regulation, with the regulatory agenda being more ambitious in the European Union than in the United States. Readers might come away from this survey skeptical about the potential for ESG investing to affect positive change. I prefer to characterize the current state of the literature as having a “healthy dose of skepticism,” with much more remaining to be explored. Here, I hope the reader comes away with a call to action. For the industry practitioner, I believe that the investment industry should strive to achieve positive societal goals. CFA Institute provides an exemplary case in its Future of Finance series (www.cfainstitute.org/research/future-finance). For the academic community, I suggest we ramp up research aimed at tackling some of the open questions around the pressing societal goals of ESG investing. I am optimistic that practitioners and academics will identify meaningful ways to better harness the power of global financial markets for addressing the pressing ESG issues facing our society.

Author: Irwan Trinugroho
Publisher: CRC Press
ISBN: 0429781830
Category : Business & Economics
Languages : en
Pages : 700

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Business Innovation driven by the advancement of technology has dramatically changed the business landscape over recent years, not only in advanced countries but also in emerging markets. It is expected that business innovation could help achieve economic inclusion, which has been a global initiative over the last decade, creating opportunities for all people to benefit from the economic development. These proceedings provide an outlet for discussing the importance of business innovation, especially in emerging countries in helping to reach inclusive economies. The papers cover the subject areas management, accounting, finance, economics and social sciences.

Author: Jennifer Francis
Publisher: Now Publishers Inc
ISBN: 1601981147
Category : Business & Economics
Languages : en
Pages : 97

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This review lays out a research perspective on earnings quality. We provide an overview of alternative definitions and measures of earnings quality and a discussion of research design choices encountered in earnings quality research. Throughout, we focus on a capital markets setting, as opposed, for example, to a contracting or stewardship setting. Our reason for this choice stems from the view that the capital market uses of accounting information are fundamental, in the sense of providing a basis for other uses, such as stewardship. Because resource allocations are ex ante decisions while contracting/stewardship assessments are ex post evaluations of outcomes, evidence on whether, how and to what degree earnings quality influences capital market resource allocation decisions is fundamental to understanding why and how accounting matters to investors and others, including those charged with stewardship responsibilities. Demonstrating a link between earnings quality and, for example, the costs of equity and debt capital implies a basic economic role in capital allocation decisions for accounting information; this role has only recently been documented in the accounting literature. We focus on how the precision of financial information in capturing one or more underlying valuation-relevant constructs affects the assessment and use of that information by capital market participants. We emphasize that the choice of constructs to be measured is typically contextual. Our main focus is on the precision of earnings, which we view as a summary indicator of the overall quality of financial reporting. Our intent in discussing research that evaluates the capital market effects of earnings quality is both to stimulate further research in this area and to encourage research on related topics, including, for example, the role of earnings quality in contracting and stewardship.

Author: Narjess Boubakri
Publisher: Emerald Group Publishing
ISBN: 1780522428
Category : Business & Economics
Languages : en
Pages : 402

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Examines various issues concerning the strategies of institutional investors, the role of institutional investors in corporate governance, their impact on local and international capital markets, as well as the emergence of sovereign and other asset management funds and their interactions with micro and macro economic and market environments.

Author: OECD
Publisher: OECD Publishing
ISBN: 9264116052
Category :
Languages : en
Pages : 78

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This report reflects long-term, in-depth discussion and debate by participants in the Latin American Roundtable on Corporate Governance.

Author: Michael E. Porter
Publisher:
ISBN: 9780071034272
Category :
Languages : en
Pages :

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