Author: Nina AnolickPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
Three Essays on Share Repurches: Equity Valuation, Activity and Sustainability
Author: Nina AnolickThree Essays in Stock Repurchase Programs
Author: Jin San KimEssays on Corporate Share Repurchase and Household Portfolio Choices
Author: Weiwei ZhangPublisher:
ISBN:
Category :
Languages : en
Pages : 280
Book Description
This dissertation consists of two empirical essays and one theoretical essay. In the first essay, I investigate how sensitivity of CEO's pay-for-performance compensation to stock prices affects firm's payout and investment policies. On the company's payout side, we find that higher delta CEOs tend to execute more share buybacks and pay fewer cash dividends. The evidence supports the notion that stock price sensitive executives particularly favor repurchases as the payout form. On the investment side, we find that higher delta CEOs allocate more money towards share buybacks, direct fewer investment resources to capital expenditures, and cut back employment. Additionally, repurchasing firms experience deterioration in operating performance subsequently following the repurchases. Our result suggests that the sensitivity of executives' compensation to stock price induces CEOs to favor short-term performance over long-term performance. In the second essay, I use an ex-ante and forward-looking stock mispricing measure to examine whether and how equity misvaluation affects corporate stock repurchase activities. In particular, we obtain the equity mispricing measure P/V by normalizing prevailing stock price with the firm's intrinsic value based on Residual Income Model (RIM). In particular, I find that undervalued firms are more likely to conduct buybacks and tend to repurchase more in terms of the percentage of market value of equity and dollar volume of the repurchase. These evidence suggest that equity undervaluation serves as a significant determinant for companies to undertake actual stock repurchase. The primary goal of the third essay is to explain family investment decisions under the assumptions of household member's preferences and efficient risk sharing among them based on the collective household model. By examining the absolute (relative) risk aversions of household welfare function, we demonstrate how household's portfolio allocation in stocks changes with family wealth. This paper examines two types of preference heterogeneity between spouses: parameter heterogeneity and functional form heterogeneity. This study offers an alternative explanation of household portfolio choice corresponding with the observation that wealthier households tend to hold greater share of family wealth in risky assets.
Grow the Pie
Author: Alex EdmansPublisher: Cambridge University Press
ISBN: 1009062719
Category : Business & Economics
Languages : en
Pages : 541
Book Description
Should companies be run for profit or purpose? This book shows how they can deliver both-based on rigorous evidence and an actionable framework. This edition, updated to include the pandemic and latest research, explains how managers, investors and citizens can put purpose into practice-and overcome the difficult trade-offs that hold them back.
Valuation Approaches and Metrics
Author: Aswath DamodaranPublisher: Now Publishers Inc
ISBN: 1601980140
Category : Business & Economics
Languages : en
Pages : 102
Book Description
Valuation lies at the heart of much of what we do in finance, whether it is the study of market efficiency and questions about corporate governance or the comparison of different investment decision rules in capital budgeting. In this paper, we consider the theory and evidence on valuation approaches. We begin by surveying the literature on discounted cash flow valuation models, ranging from the first mentions of the dividend discount model to value stocks to the use of excess return models in more recent years. In the second part of the paper, we examine relative valuation models and, in particular, the use of multiples and comparables in valuation and evaluate whether relative valuation models yield more or less precise estimates of value than discounted cash flow models. In the final part of the paper, we set the stage for further research in valuation by noting the estimation challenges we face as companies globalize and become exposed to risk in multiple countries.
Model Rules of Professional Conduct
Author: American Bar Association. House of DelegatesPublisher: American Bar Association
ISBN: 9781590318737
Category : Law
Languages : en
Pages : 216
Book Description
The Model Rules of Professional Conduct provides an up-to-date resource for information on legal ethics. Federal, state and local courts in all jurisdictions look to the Rules for guidance in solving lawyer malpractice cases, disciplinary actions, disqualification issues, sanctions questions and much more. In this volume, black-letter Rules of Professional Conduct are followed by numbered Comments that explain each Rule's purpose and provide suggestions for its practical application. The Rules will help you identify proper conduct in a variety of given situations, review those instances where discretionary action is possible, and define the nature of the relationship between you and your clients, colleagues and the courts.
The Theory of Incentives
Author: Jean-Jacques LaffontPublisher: Princeton University Press
ISBN: 1400829453
Category : Business & Economics
Languages : en
Pages : 436
Book Description
Economics has much to do with incentives--not least, incentives to work hard, to produce quality products, to study, to invest, and to save. Although Adam Smith amply confirmed this more than two hundred years ago in his analysis of sharecropping contracts, only in recent decades has a theory begun to emerge to place the topic at the heart of economic thinking. In this book, Jean-Jacques Laffont and David Martimort present the most thorough yet accessible introduction to incentives theory to date. Central to this theory is a simple question as pivotal to modern-day management as it is to economics research: What makes people act in a particular way in an economic or business situation? In seeking an answer, the authors provide the methodological tools to design institutions that can ensure good incentives for economic agents. This book focuses on the principal-agent model, the "simple" situation where a principal, or company, delegates a task to a single agent through a contract--the essence of management and contract theory. How does the owner or manager of a firm align the objectives of its various members to maximize profits? Following a brief historical overview showing how the problem of incentives has come to the fore in the past two centuries, the authors devote the bulk of their work to exploring principal-agent models and various extensions thereof in light of three types of information problems: adverse selection, moral hazard, and non-verifiability. Offering an unprecedented look at a subject vital to industrial organization, labor economics, and behavioral economics, this book is set to become the definitive resource for students, researchers, and others who might find themselves pondering what contracts, and the incentives they embody, are really all about.
Valuation
Author: McKinsey & Company Inc.Publisher: John Wiley & Sons
ISBN: 0470889934
Category : Business & Economics
Languages : en
Pages : 860
Book Description
The number one guide to corporate valuation is back and better than ever Thoroughly revised and expanded to reflect business conditions in today's volatile global economy, Valuation, Fifth Edition continues the tradition of its bestselling predecessors by providing up-to-date insights and practical advice on how to create, manage, and measure the value of an organization. Along with all new case studies that illustrate how valuation techniques and principles are applied in real-world situations, this comprehensive guide has been updated to reflect new developments in corporate finance, changes in accounting rules, and an enhanced global perspective. Valuation, Fifth Edition is filled with expert guidance that managers at all levels, investors, and students can use to enhance their understanding of this important discipline. Contains strategies for multi-business valuation and valuation for corporate restructuring, mergers, and acquisitions Addresses how you can interpret the results of a valuation in light of a company's competitive situation Also available: a book plus CD-ROM package (978-0-470-42469-8) as well as a stand-alone CD-ROM (978-0-470-42457-7) containing an interactive valuation DCF model Valuation, Fifth Edition stands alone in this field with its reputation of quality and consistency. If you want to hone your valuation skills today and improve them for years to come, look no further than this book.
Dissertation Abstracts International
Author: Publisher:
ISBN:
Category : Dissertations, Academic
Languages : en
Pages : 572
Book Description
Producing Prosperity
Author: Gary P. PisanoPublisher: Harvard Business Press
ISBN: 1422187543
Category : Business & Economics
Languages : en
Pages : 256
Book Description
Manufacturing’s central role in global innovation Companies compete on the decisions they make. For years—even decades—in response to intensifying global competition, companies decided to outsource their manufacturing operations in order to reduce costs. But we are now seeing the alarming long-term effect of those choices: in many cases, once manufacturing capabilities go away, so does much of the ability to innovate and compete. Manufacturing, it turns out, really matters in an innovation-driven economy. In Producing Prosperity, Harvard Business School professors Gary Pisano and Willy Shih show the disastrous consequences of years of poor sourcing decisions and underinvestment in manufacturing capabilities. They reveal how today’s undervalued manufacturing operations often hold the seeds of tomorrow’s innovative new products, arguing that companies must reinvest in new product and process development in the US industrial sector. Only by reviving this “industrial commons” can the world’s largest economy build the expertise and manufacturing muscle to regain competitive advantage. America needs a manufacturing renaissance—for restoring itself, and for the global economy as a whole. This will require major changes. Pisano and Shih show how company-level choices are key to the sustained success of industries and economies, and they provide business leaders with a framework for understanding the links between manufacturing and innovation that will enable them to make better outsourcing decisions. They also detail how government must change its support of basic and applied scientific research, and promote collaboration between business and academia. For executives, policymakers, academics, and innovators alike, Producing Prosperity provides the clearest and most compelling account yet of how the American economy lost its competitive edge—and how to get it back.