The Experts below are selected from a list of 24357 Experts worldwide ranked by ideXlab platform
Emilie R. Feldman - One of the best experts on this subject based on the ideXlab platform.
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activist impelled divestitures and Shareholder Value
Southern Medical Journal, 2018Co-Authors: Siwen Chen, Emilie R. FeldmanAbstract:Research Summary: This study analyzes how the divestitures that are impelled by activist investors in their campaigns against public corporations affect Shareholder Value. Using hand‐collected data on the activist campaigns that were launched against and the divestitures that were undertaken by Fortune 500 companies between 2007 and 2015, we find that activist‐impelled divestitures are more positively associated with immediate and longer‐term measures of Shareholder Value than comparable manager‐led divestitures. These performance differences persist for nearly two years after the completion of these deals. Our results empirically test the idea that firms with agency problems unlock Shareholder Value when they divest, and support the notion that activist investors fulfill an important external governance function. Our work also opens new research opportunities and offers practical implications as well. Managerial Summary: This study investigates how divestitures that are undertaken at the behest of activist investors affect Shareholder Value. We find that divestitures that were undertaken under pressure from activist investors are associated with more positive Shareholder returns than comparable divestitures that were undertaken voluntarily by managers. These performance differences persist for nearly two years after the completion of these deals, alleviating concerns about the purported short‐termism of activist investors. Our findings suggest that activist investors may fulfill an important governance function by inducing managers to undertake strategies that they might not otherwise pursue, thereby unlocking Shareholder Value.
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Activist‐impelled divestitures and Shareholder Value
Strategic Management Journal, 2018Co-Authors: Siwen Chen, Emilie R. FeldmanAbstract:Research Summary: This study analyzes how the divestitures that are impelled by activist investors in their campaigns against public corporations affect Shareholder Value. Using hand‐collected data on the activist campaigns that were launched against and the divestitures that were undertaken by Fortune 500 companies between 2007 and 2015, we find that activist‐impelled divestitures are more positively associated with immediate and longer‐term measures of Shareholder Value than comparable manager‐led divestitures. These performance differences persist for nearly two years after the completion of these deals. Our results empirically test the idea that firms with agency problems unlock Shareholder Value when they divest, and support the notion that activist investors fulfill an important external governance function. Our work also opens new research opportunities and offers practical implications as well. Managerial Summary: This study investigates how divestitures that are undertaken at the behest of activist investors affect Shareholder Value. We find that divestitures that were undertaken under pressure from activist investors are associated with more positive Shareholder returns than comparable divestitures that were undertaken voluntarily by managers. These performance differences persist for nearly two years after the completion of these deals, alleviating concerns about the purported short‐termism of activist investors. Our findings suggest that activist investors may fulfill an important governance function by inducing managers to undertake strategies that they might not otherwise pursue, thereby unlocking Shareholder Value.
Siwen Chen - One of the best experts on this subject based on the ideXlab platform.
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activist impelled divestitures and Shareholder Value
Southern Medical Journal, 2018Co-Authors: Siwen Chen, Emilie R. FeldmanAbstract:Research Summary: This study analyzes how the divestitures that are impelled by activist investors in their campaigns against public corporations affect Shareholder Value. Using hand‐collected data on the activist campaigns that were launched against and the divestitures that were undertaken by Fortune 500 companies between 2007 and 2015, we find that activist‐impelled divestitures are more positively associated with immediate and longer‐term measures of Shareholder Value than comparable manager‐led divestitures. These performance differences persist for nearly two years after the completion of these deals. Our results empirically test the idea that firms with agency problems unlock Shareholder Value when they divest, and support the notion that activist investors fulfill an important external governance function. Our work also opens new research opportunities and offers practical implications as well. Managerial Summary: This study investigates how divestitures that are undertaken at the behest of activist investors affect Shareholder Value. We find that divestitures that were undertaken under pressure from activist investors are associated with more positive Shareholder returns than comparable divestitures that were undertaken voluntarily by managers. These performance differences persist for nearly two years after the completion of these deals, alleviating concerns about the purported short‐termism of activist investors. Our findings suggest that activist investors may fulfill an important governance function by inducing managers to undertake strategies that they might not otherwise pursue, thereby unlocking Shareholder Value.
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Activist‐impelled divestitures and Shareholder Value
Strategic Management Journal, 2018Co-Authors: Siwen Chen, Emilie R. FeldmanAbstract:Research Summary: This study analyzes how the divestitures that are impelled by activist investors in their campaigns against public corporations affect Shareholder Value. Using hand‐collected data on the activist campaigns that were launched against and the divestitures that were undertaken by Fortune 500 companies between 2007 and 2015, we find that activist‐impelled divestitures are more positively associated with immediate and longer‐term measures of Shareholder Value than comparable manager‐led divestitures. These performance differences persist for nearly two years after the completion of these deals. Our results empirically test the idea that firms with agency problems unlock Shareholder Value when they divest, and support the notion that activist investors fulfill an important external governance function. Our work also opens new research opportunities and offers practical implications as well. Managerial Summary: This study investigates how divestitures that are undertaken at the behest of activist investors affect Shareholder Value. We find that divestitures that were undertaken under pressure from activist investors are associated with more positive Shareholder returns than comparable divestitures that were undertaken voluntarily by managers. These performance differences persist for nearly two years after the completion of these deals, alleviating concerns about the purported short‐termism of activist investors. Our findings suggest that activist investors may fulfill an important governance function by inducing managers to undertake strategies that they might not otherwise pursue, thereby unlocking Shareholder Value.
Franco Fiordelisi - One of the best experts on this subject based on the ideXlab platform.
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Shareholder Value creation and risks in European banks
2010Co-Authors: Franco FiordelisiAbstract:This paper examines the determinants of Shareholder Value creation for a large sample of European banks. By using a panel data model, we find that bank profits and Shareholder Value are positively influenced by cost and profit efficiency, operational risk exposure, unexpected credit losses and financial leverage. In contrast, deposit and loan growth, liquidity risk and domestic inflation adversely impact on Value creation.
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The determinants of Shareholder Value in European banking
Journal of Banking & Finance, 2010Co-Authors: Franco Fiordelisi, Philip MolyneuxAbstract:This paper examines the determinants of Shareholder Value creation for a large sample of European banks between 1998 and 2005. As the recent turmoil in global banking systems has illustrated, bank performance can have a substantial influence on efficient capital allocation, company growth and economic development. We use a dynamic panel data model where the bank's Shareholder Value is a linear function of various bank-specific, industry-specific and macroeconomic variables. We show that Shareholder Value has a positive relationship with cost efficiency changes, while economic profits are linked to revenue efficiency changes. Credit losses, market and liquidity risk and leverage are also found to substantially influence bank performance. These results are robust to a variety of different model specifications.
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Corporate Culture and Shareholder Value in Banking Industry
SSRN Electronic Journal, 2008Co-Authors: Alessandro Carretta, Franco Fiordelisi, Vincenzo Farina, Paola SchwizerAbstract:This paper analyses the casual relationship between corporate culture and Shareholder Value using a sample of large banks in the French, German, Italian and U.K. banking systems over the 2000 to 2003 period. Firstly, we measure Shareholder Value using an Economic Value Added estimated through a procedure tailored to account for banking peculiarities. Secondly, we measure corporate culture using language as its particular artifact and developing a cultural survey based on the application of a text-analysis model to a corpus of reference texts produced by the sample of banks. We posit six hypotheses regarding the relationship between corporate culture and bank profits and Shareholder Value. Our results noticeably show that bank profits and Shareholder Value benefit from different orientations of banking corporate culture.
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Shareholder Value efficiency in European banking
Journal of Banking & Finance, 2007Co-Authors: Franco FiordelisiAbstract:Abstract This paper advances the studies of [Hughes, J.P., Lang W.W., Mester L.J., Moon C.G., Pagano M.S., 2003. Do bankers sacrifice Value to build empires? Managerial incentives, industry consolidation, and financial performance. Journal of Banking and Finance 27, 417–447] by developing a new measure of bank performance which we refer to as “Shareholder Value efficiency” – a bank producing the maximum possible Economic Value Added (EVA), given particular inputs and outputs, is defined as “Shareholder Value efficient”. This new efficiency measure is estimated using the stochastic frontier method focussing on the French, German, Italian and UK banking systems over the period 1997–2002 and includes both listed and non-listed banks. We find that European banks are, on average, 36% Shareholder Value inefficient. Shareholder Value efficiency is found to be the most important factor explaining Value creation in European banking, whereas cost and profit efficiency only have a marginal influence.
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Shareholder Value: a Literature Review
Shareholder Value in Banking, 2006Co-Authors: Franco Fiordelisi, Philip MolyneuxAbstract:As noted in the previous chapter, managing to create sustainable Shareholder Value is an important objective in European banking. While there is a substantial literature dealing with Shareholder Value, there remains confusion as to how to create Value for Shareholders and noticeable partiality among supporters of various metrics for measuring Shareholder Value. Resti (1999: 19) notes that ‘Shareholder Value in banking is becoming a sort of mot de passe, a skeleton key for making all agree, a spice to give flavour even to non-tasting projects and find the favour of all guests. Yet, despite the unavoidable banalities implied in any formulas for corporate success, the creation of Shareholder Value is an urgent issue in European banking.’
Philip Molyneux - One of the best experts on this subject based on the ideXlab platform.
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The determinants of Shareholder Value in European banking
Journal of Banking & Finance, 2010Co-Authors: Franco Fiordelisi, Philip MolyneuxAbstract:This paper examines the determinants of Shareholder Value creation for a large sample of European banks between 1998 and 2005. As the recent turmoil in global banking systems has illustrated, bank performance can have a substantial influence on efficient capital allocation, company growth and economic development. We use a dynamic panel data model where the bank's Shareholder Value is a linear function of various bank-specific, industry-specific and macroeconomic variables. We show that Shareholder Value has a positive relationship with cost efficiency changes, while economic profits are linked to revenue efficiency changes. Credit losses, market and liquidity risk and leverage are also found to substantially influence bank performance. These results are robust to a variety of different model specifications.
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Shareholder Value: a Literature Review
Shareholder Value in Banking, 2006Co-Authors: Franco Fiordelisi, Philip MolyneuxAbstract:As noted in the previous chapter, managing to create sustainable Shareholder Value is an important objective in European banking. While there is a substantial literature dealing with Shareholder Value, there remains confusion as to how to create Value for Shareholders and noticeable partiality among supporters of various metrics for measuring Shareholder Value. Resti (1999: 19) notes that ‘Shareholder Value in banking is becoming a sort of mot de passe, a skeleton key for making all agree, a spice to give flavour even to non-tasting projects and find the favour of all guests. Yet, despite the unavoidable banalities implied in any formulas for corporate success, the creation of Shareholder Value is an urgent issue in European banking.’
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Determinants of Shareholder Value in European Banking and Shareholder Value Efficiency
Shareholder Value in Banking, 2006Co-Authors: Franco Fiordelisi, Philip MolyneuxAbstract:In Chapter 4, we analysed some of the most common strategies developed since the 1990s to create Shareholder Value, namely, increasing customer satisfaction, enhancing bank cost and profit efficiencies and increasing productivity. In Chapter 6 we presented various approaches to measure these drivers. The first part of this chapter aims to use the aforementioned measures to see how important they are in describing Shareholder Value in European banking. In particular, we use estimates of customer satisfaction, cost efficiency, profit efficiency and productivity changes to see how these factors explain Shareholder Value as shown in Figure 7.1. The approach adopted is similar to that presented in Chapter 5 to test the information content of performance measures. Focusing on the French, German, Italian and UK banking systems over the period 1995–2002, we analyse the Value relevance of all these types of efficiency estimates for both listed banks and non-listed banks.
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Why Study Shareholder Value Creation in European Banking
Shareholder Value in Banking, 2006Co-Authors: Franco Fiordelisi, Philip MolyneuxAbstract:This book is concerned with the analysis of the relationship between Shareholder Value and its drivers in European banking markets. One might address the following four questions: 1. Why a book on ‘Shareholder Value’? 2. Is it necessary to have another contribution to the Shareholder Value debate? 3. Why banks? 4. Why in Europe? With regard to the first question, Shareholder Value is currently one of the most widely studied areas in finance.l Shareholder Value maximisation has become the primary business goal and performance target for most companies. Although managers and practitioners have traditionally criticised the notion that the objective in decision-making should be to maximise firm Value, in the last decade, they have recognised that Shareholder-Value maximisation is at least an important priority for firms. It is possible to answer the first question by concluding that `Shareholder Value' is an area of research well-defined, robust and interesting for academics, regulators and practitioners.
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Bank Performance Measures and Shareholder Value
Shareholder Value in Banking, 2006Co-Authors: Franco Fiordelisi, Philip MolyneuxAbstract:Building on the discussion in previous chapters here we present an empirical investigation to assess which type of performance measure best explains Shareholder Value creation in banking. Our analysis is undertaken on a range of European listed banks and measures Shareholder Value created across European banking sectors over the same period.
Olli-pekka Hilmola - One of the best experts on this subject based on the ideXlab platform.
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Role of inventory and assets in Shareholder Value creation
Expert Systems with Applications: X, 2020Co-Authors: Olli-pekka HilmolaAbstract:Abstract In this study is examined the role of inventories and assets in the financial and Shareholder Value creation of a company. Research builds several Data Envelopment Analysis (DEA) models (staged), and tests their connections with each other. Research concerns publicly traded manufacturing and trade companies of Finland and three Baltic States (Estonia, Latvia and Lithuania) during the years 2010–2018. Logical and in two stages proceeding DEA efficiency model gets statistical significance, and there is support that inventory and asset related measures will lead to revenue, profits and cash flow, which together will eventually result in higher Shareholder Value (like stated in operations and supply chain management theories such as theory of constraints). However, this finding has weakness as explanation power is low, and there is a lot of noise. It could also be so that inventories and assets are part of bunch of other inputs, which together directly create Shareholder Value. Therefore, it remains as an open question whether inventory and assets should be managed through classical and logical stages in companies through organization hierarchy, or if inventory and assets should be just a part of group of factors, which together aim to increase Shareholder Value.
