Current Issue : January - March Volume : 2017 Issue Number : 1 Articles : 6 Articles
As businesses have become global, the Information and Communication Technology (ICT) has spread in private\nbusiness sectors. This has led to the development of digital markets, the regional and organizational decentralization1\nof the internal organization as well as the more frequent occurrence of hybrid forms of corporations. In contrast to the\nlocal independent and international activities of enterprises, generally accepted tax principles2 are used to evaluate\ncurrent tax regulations as well as to recommend possible reform approaches based on physical and legal aspects,\nwhich serve as taxable entities and tax attributes. This paper proposes a valid tax plan that minimizes a multinational\ntechnology company�s taxes....
Equity private placement is the newest method of corporate financing strategy. The private\nequity financing under SEC Rule 144A is exploding and yet not much is known about the\nmotivation behind private equity placement by public firms. Considering that privately placed\nfirms have no bonding benefit, private equity investors would discount their capital by the\namount of expected consumption of private benefits. Therefore, the issuers are unable to\nlower the cost of capital nor increase managerial perquisites. One possible motivation for\nprivate placement then is that firms offering the private DR increase their private benefits\nwith the capital raised subsequently. Our approach is new to literature by incorporating both\nbenefit (conceal private information) and cost (informational monopoly) associated with\nprivate equity financing....
This paper contributes to the recent literature on the information transparency and its impact on stock price\nvolatility. Some authors claim that more disclosure might reduce volatility of the stock price. Since 2005 the use of\nIFRS is mandatory for listed companies in the EU. In some countries, like Demark, corporate law allows the use\nof the Equity Method in separate financial statements to measure investments in subsidiaries, which is contrary to\nIFRS. Lately, IFRS has re-allowed the use of the Equity Method (probably to be approved by the EU soon). This study\ninvestigates the stock volatility consequences of using the Equity Method so far in Denmark. We had collected all\nDanish non-financial and non-insurance companies disclosing consolidated Group and Parent company financial\nstatements. Also, we selected volatility measures by use of the ORBIS-database, and analyses it all together. Our\ntests showed lower level of volatility for the Equity Method using group of companies compared to the non-Equity\nmethod using group of companies, also after controlling for differences in industries and transparency levels in\nthe two groupsââ?¬â?¢ companies. Regression analyses confirmed the tendency that Equity Method and lower volatility\nfollows each other. However, we did not find evidence that the specific account ââ?¬Å?Reserve for net Revaluations\nunder the Equity Methodââ?¬Â should be a significant part of the relation. It seems that most important for the size of\nthe volatility is the difference between consolidated Group Equity and Parent Equity. However, whether a smaller\ndifference stems from a relatively high part of group income being realized in parentââ?¬â?¢s financial statements, or\nwhether it stems from relatively high part of group income being recognized in subsidiaries by use of the Equity\nMethod seems not to be important....
This paper aims to identify how the inclusion of financial sector affects the ability of asset\npricing models to explain the average stock returns in the CSE. Most of the asset pricing\nresearches, the firms in the financial sector are excluded on the basis that their characteristics\nand the leverage are notably different than firms in other industries. Therefore the objective\nof this study is to identify the impact of the inclusion of financial sector on the ability of the\nCarhart four-factor model to explain the average stock returns in the CSE and to compare its\nperformance with the Capital Asset Pricing Model (CAPM) and the Fama and French\nthree-factor model. The study finds that the four-factor model; incorporating the market\npremium, size premium, value premium and momentum premium provides a satisfactory\nexplanation of the variation in the cross-section of average stock returns in the CSE, even\nwhen the financial sector is included. It is found that the Carhart four-factor model performs\nbetter than the CAPM in all scenarios; and that it performs notably better than the Fama and\nFrench three-factor model.However, there is no notable difference in the findings either the\nfinancial sector is included or not....
This paper critically reviews and examines the relationship between the origin of disequilibrium macroeconomic\nthinking by John Maynard Keynes, and the development of Keynesian disequilibrium macroeconomic models. Given\nthat the two strands of literature are both plentiful, I will focus on discussing the essence of Keynesian disequilibrium\nthinking, and its implications of relevant models in the context of Keynes-Metzler-Goodwin and Weidlich-Haag-Lux\napproaches....
This study sought to determine the economic factors predicting IPO share price volatility at the Nairobi Securities\nExchange under the mediating role of regulatory authorities such as the Central Bank of Kenya, Capital Markets\nAuthority, Nairobi Securities Exchange and National Treasury, and the intervening function of Investment banks,\ncommercial banks, brokerage houses, media and politics. Through a correlational research design employing\nsimple regression, the results are contradictory on the economic indicators and their effect on different sectors of\nthe economy. With the exception of Equity bank which showed a positive relationship with interest rates, Foreign\nexchange, Nairobi Securities All Share Index and Lagged Share Price, KenGen and Safaricom showed no significant\nrelationship with their economic predictors. A reworked model comprising inflation rate, interest rate, foreign exchange\nrate and money supply captured the overall market prediction with the initial three having negative significance\nwhereas money supply had positive significance as a predictor of share price volatility....
Loading....