The Experts below are selected from a list of 3495 Experts worldwide ranked by ideXlab platform
D Kemsley - One of the best experts on this subject based on the ideXlab platform.
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dividend taxation in Firm Valuation new evidence
Journal of Accounting Research, 1999Co-Authors: T-s Harris, D KemsleyAbstract:In this paper we develop a residual-income model showing how taxes on dividends affect the relative Valuation of retained earnings versus contributed equity, as well as the value of expected future earnings. Tests of predictions from our model for a sample of Compustat Firms from 197594 suggest that overall Firm value, and the relative Valuation weights investors assign to retained earnings, contributed equity, and current earnings, all critically depend on dividend taxes. The findings also suggest that investors take a proprietary perspective in Valuation and impute an unrecorded shareholder-level tax liability on retained earnings. The U.S. tax system subjects retained earnings to dividend taxes upon distribution to shareholders, while contributed equity is returned to shareholders as a nontaxable return of capital. From the shareholder's (proprietary) perspective, therefore, retained earnings should be valued on
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Dividend and Capital Gains Taxation in Firm Valuation: New Evidence
1997Co-Authors: T-s Harris, D KemsleyAbstract:This paper considers how personal taxation of dividends and capital gains influences the Valuation of a Firm. Although this basic issue has been debated for more than twenty years in the corporate finance, public finance, and accounting literatures, the impact of personal taxation upon Firm Valuation and the cost of equity capital remains controversial.
Avanidhar Subrahmanyam - One of the best experts on this subject based on the ideXlab platform.
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options trading activity and Firm Valuation
Journal of Financial Economics, 2009Co-Authors: Richard Roll, Eduardo S Schwartz, Avanidhar SubrahmanyamAbstract:Options may have an effect on Firm value because they help complete markets and stimulate informed trades. However, these benefits are likely to manifest themselves in active, rather than inactive, options markets. Supporting this observation, we find that Firms with more options trading have higher values of Tobin's q, after accounting for other determinants of value. Corporate investment in Firms with greater options trading is more sensitive to stock prices. Options trading affects Firm Valuation more strongly in stocks with greater information asymmetry. These results indicate that options trading is positively associated with Firm values as well as information production.
T-s Harris - One of the best experts on this subject based on the ideXlab platform.
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dividend taxation in Firm Valuation new evidence
Journal of Accounting Research, 1999Co-Authors: T-s Harris, D KemsleyAbstract:In this paper we develop a residual-income model showing how taxes on dividends affect the relative Valuation of retained earnings versus contributed equity, as well as the value of expected future earnings. Tests of predictions from our model for a sample of Compustat Firms from 197594 suggest that overall Firm value, and the relative Valuation weights investors assign to retained earnings, contributed equity, and current earnings, all critically depend on dividend taxes. The findings also suggest that investors take a proprietary perspective in Valuation and impute an unrecorded shareholder-level tax liability on retained earnings. The U.S. tax system subjects retained earnings to dividend taxes upon distribution to shareholders, while contributed equity is returned to shareholders as a nontaxable return of capital. From the shareholder's (proprietary) perspective, therefore, retained earnings should be valued on
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Dividend and Capital Gains Taxation in Firm Valuation: New Evidence
1997Co-Authors: T-s Harris, D KemsleyAbstract:This paper considers how personal taxation of dividends and capital gains influences the Valuation of a Firm. Although this basic issue has been debated for more than twenty years in the corporate finance, public finance, and accounting literatures, the impact of personal taxation upon Firm Valuation and the cost of equity capital remains controversial.
Allen Ferrell - One of the best experts on this subject based on the ideXlab platform.
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thirty years of corporate governance Firm Valuation stock returns
2009Co-Authors: Martijn Cremers, Allen FerrellAbstract:his paper introduces a dataset tracking approximately 1,000 Firms’ G- and E-index scores, as well the individual corporate governance provisions constituting these indexes, over the 1978-1989 period. Combining this data with the 1990-2006 IRRC data, we are able to track Firms’ corporate governance over a thirty year period. Most governance changes occurred during the 1980s (with relative stability thereafter). We find a robustly negative association between the G- and E-Index and Tobin’s Q for the 1978-2006 period, even when using Firm fixed effects, and little direct evidence for reverse causation. The negative Firm Valuation effects of classified boards, poison pills and G-Index generally was significantly greater after the judicial approval of the poison pill in 1985, which can be considered as a largely unanticipated, exogenous shock to corporate governance. Moreover, G-Index changes have a much stronger negative association with Firm Valuation when a Firm is in an industry experiencing “high†levels of M&A activity. Finally, we find a robust positive association between “good†corporate governance and abnormal returns for the 1978-2006 period. The abnormal returns association with governance was strongest in the beginning of our 1978-2006 time period and generally declining thereafter, consistent with an explanation of these returns based on the market learning the importance of good governance.
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Thirty Years of Corporate Governance: Firm Valuation & Stock Returns
2009Co-Authors: Martijn Cremers, Allen FerrellAbstract:his paper introduces a dataset tracking approximately 1,000 Firms’ G- and E-index scores, as well the individual corporate governance provisions constituting these indexes, over the 1978-1989 period. Combining this data with the 1990-2006 IRRC data, we are able to track Firms’ corporate governance over a thirty year period. Most governance changes occurred during the 1980s (with relative stability thereafter). We find a robustly negative association between the G- and E-Index and Tobin’s Q for the 1978-2006 period, even when using Firm fixed effects, and little direct evidence for reverse causation. The negative Firm Valuation effects of classified boards, poison pills and G-Index generally was significantly greater after the judicial approval of the poison pill in 1985, which can be considered as a largely unanticipated, exogenous shock to corporate governance. Moreover, G-Index changes have a much stronger negative association with Firm Valuation when a Firm is in an industry experiencing “high†levels of M&A activity. Finally, we find a robust positive association between “good†corporate governance and abnormal returns for the 1978-2006 period. The abnormal returns association with governance was strongest in the beginning of our 1978-2006 time period and generally declining thereafter, consistent with an explanation of these returns based on the market learning the importance of good governance.
Darren Henry - One of the best experts on this subject based on the ideXlab platform.
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Ownership Structure, Related Party Transactions, and Firm Valuation
2020Co-Authors: Amrinder Khosa, Kamran Ahmed, Darren HenryAbstract:Concentrated ownership is considered to be the best protection for shareholders in economies where legal protection is relatively weak. This book investigates and concludes, for Indian business groups, that concentrated-inside ownership provides opportunities for the expropriation of minority shareholders. While more concentrated direct ownership of controlling families results in a higher market value of equity, indirect ownership obtained through cross-holding provides incentives to extract private benefits and results in value loss. This finding requires the prompt attention of regulatory bodies, outside investors and other interested parties. This book examines the effect of ownership structure and disclosure of related-party transactions on Firm Valuation of group-affiliated Firms in India, by using a sample of 317 listed Firms comprising 1350 Firm-year observations from 2008 to 2017. Well-accepted value-relevance models are employed to examine the effect of ownership rights on market value of equity and Valuation effect of RP trading, asset transfer, investment and loan transactions.