Equity Ownership Research Articles

Private equity ownership of ophthalmology practices: how does it impact clinical research?

To explore the impact of private equity ownership of ophthalmology practices on the success of their clinical research programs. Private equity partnership in the clinical research space has been steadily occurring over the past decades. In addition to contract research organizations, private equity groups have also consolidated multiple independent clinical research networks. By investing in an increasing number of retina practices, one private equity group is attempting to create a synergistic relationship between clinical practice and clinical research with the goal of supporting a larger, more robust clinical research network. Although there are physician concerns about the potential deleterious effects of private equity ownership on clinical research capabilities, private equity support has the potential to be an important stimulus for clinical research growth. http://links.lww.com/COOP/A48.

Relationship between black ownership, capital structure and company performance

Background: The notion that a company’s ownership structure may affect performance and capital structure has been the attraction, but few studies have looked at the effect of black ownership (BO).Aim: This paper contributes to the literature by examining the possible interactions between BO, performance, and capital structure. Within an agency cost framework, the study indicated that the distribution of equity ownership among black shareholders might significantly influence the performance and leverage of companies listed on the Johannesburg Stock Exchange (JSE).Setting: Altogether 187 companies on the JSE were selected for the period of 2007 to 2014.Method: Data on the sampled companies were sourced from the Iress database, a prominent source of financial data in South Africa, as well as annual reports. The research used a pooled fixed-effects model, random effects model and two-step generalised method of moments in the analysis.Results: The findings of the research provided support for the agency cost theory. The empirical findings indicated that BO was negatively correlated with debt ratio (long-term debt) and performance (Tobin’s Q [TQ]). Surprisingly, BO was positively and significantly correlated with return on assets. Finally, the empirical findings indicated that the proportion of long-term debt and total debt based on market value was lower for BO than for total ownership, while TQ was higher for BO than for total ownership. The finding supports the prediction that companies with a relatively small proportion of black ownership cannot support high leverage and high performanceConclusion: Although the introduction of BO by way of government intervention has been partially successful, more can be done to improve the relationship between the proportion of BO, performance and capital structure in a developing economy.

Investor protection, hedge fund leverage and valuation

Weak investor protection inevitably causes concentrated insider equity ownership, economic decision distortion and resource misallocation (Shleifer and Vishny, 1993). Our paper focuses on theoretical hedge fund valuation and dynamic leverage choice by incorporating the consideration of weak investor protection. The weak investor protection effect on dynamic leverage choice is ambiguous, as it depends on the managers’ moneyness ratio, which will certainly have a negative effect on the hedge fund investors’ payoff. Thus, managers should take more ownership and engage in short volatility strategies in weak investor protection to secure their total payoff.Weak investor protection also significantly increases the hedge fund founding break-even alpha.

Ten financial actors can accelerate a transition away from fossil fuels

Investors have a central role to play in sustainability transitions, due to their inordinate influence on the governance of the fossil fuel extraction industry. Using network analysis, this paper links fossil fuel firms to equity owners, by distinguishing ownership characteristics of top shareholders and establishing a ranked list of the most prevalent shareholders based on emissions potential and network centrality. Our study reveals that among the most prevalent owners, are government signatories of the Paris accord and prominent American investment managers. We conclude that a concentrated number of investors have the potential to influence the strategic direction and governance of these firms and should consequently be held accountable for financing the economic activities that contribute to climate instability. This paper directly contributes to the fragmented body of academic research on financial systems and sustainability transitions.

Institutional distance and ownership in foreign acquisitions

In this study, we take a balanced view on cross-border distances and argue that there are both costs and benefits when multinational companies (MNCs) operate in distant environments. When conducting cross border acquisitions (CBAs), MNCs attempt to minimize the costs while also maximizing the benefits offered by institutionally distant host countries. MNCs do so by sharing the equity ownership with the local partners who help MNCs navigate the local environment and derive location-specific advantages. We also propose that the effect of institutional distance is directional such that firms are more likely to opt for shared ownership when the target is located in a country with less developed institutions than in a country with more developed institutions. Further, firm-specific and context-specific factors impact the costs and benefits of operating in distant countries and condition the relationship between institutional distance and the likelihood of a firm opting for shared ownership in CBAs. We test our arguments on a sample of 37,588 CBAs involving 52 home and 54 host countries over 17 years (1996–2013).

Other people's money: A comparison of institutional investors

Using unique equity ownership data, we investigate the stock picking preferences and return forecasting performances of institutional investors that manage their own money against those that manage others’. We reveal that these investors’ preferences significantly differ in historical patterns, liquidity and prudence when picking stocks. In particular, ‘own money managers’ display a risk-seeking behaviour whereas “others’ money managers” exhibit risk-averse characteristics. However, our results indicate that both types of investors are well informed, albeit own money managers excel in the short-term while others’ money managers are successful in the long-term.

Capital Structure, Corporate Governance, Equity Ownership and Their Impact on Firms’ Profitability and Effectiveness in the Energy Sector

This paper aimed to research the interrelation between capital structure, corporate governance, equity ownership, and how they affect firm performance. The sample used consisted of 10 leading-energy-sector companies traded in the NYSE, most of which rank among the largest companies in the world by market capitalization, while the US-based ones are also Fortune 500 companies. Over the eleven-year period examined, from 2009 to 2019, a sampling frame of 110 data series was gathered and analyzed using panel data methodologies. The impact of the key parameters of capital structure, corporate governance, and equity ownership was tested using regression analysis (panel data method) on firm performance, measured by profitability. Our results support a significant relation among major capital structure and corporate governance parameters and firm performance, whereas no evidence was found to support a significant impact of equity ownership on the dependent variable found ascertained. Furthermore, our findings support that in our sample firms, pecking order and agency cost theories play an important role in the financing of these firms, while static trade and irrelevance theory find no support.

Emerging conceptions of heritage city from Market Bazurto Cartagena de Indias: the perfect city to diverse city

El objetivo del siguiente artículo expone algunas reflexiones conceptuales, que sobre ciudad y patrimonio es posible plantear desde el Mercado Público de Bazurto ubicado en la ciudad de Cartagena de Indias-Colombia. Se trata de analizar los cambios existentesentre la concepción de la ciudad privada que se vende, de la ciudad arquitectónicamente concebida desde lo español a la ciudad de las múltiples voces, a la ciudad que es capaz de definirse a sí misma, a la ciudad del caos y la imperfección. El documento presenta como propuesta la postulación de una ciudad educadora pertinente para asumir la posibilidad del cambio y apropiación patrimonial de espacios como el Mercado de Bazurto de Cartagena.

Kinerja Perusahaan dan Corporate Social Responsibility: Peran Moderasi dari Perusahaan Keluarga

Purpose - Corporate Social Responsibility (CSR) can be defined as a commitment and form of action taken by a company regarding social responsibility and the surrounding environment with the aim of improving the welfare of people's lives and strengthening relationships between stakeholders. The purpose of this study is to examine the relationship between firm performance and CSR moderated by family firm variables and firm size, leverage, and equity ownership concentration as control variables.
 Research Method - The sample used in this research is quantitative data with a purposive sampling technique. Based on the criteria, the number of samples collected is 240 samples from 48 companies in the period 2016-2020. The sample data is tested using panel data regression.
 Findings - The result of this study indicates that there is a significant negative relationship between the firm performance variable on CSR. The moderating variable, family firm, strengthens the relationship between firm performance and CSR.
 Implication - The findings of this study imply that the higher the firm performance and profits obtained from stakeholders, the company must also be more serious in paying attention to CSR issues, implement and disclose them following the demands of stakeholders instead of exploiting them more. Stakeholders must pay more attention, especially to family companies. Policymakers to evaluate existing regulations of CSR. They should encourage the implementation and disclosure of CSR in Indonesia, which will be beneficial for stakeholders and the company itself.

Disentangling Country and Firm Level Effects on Firm Equity Ownership and Firm Financial Performance: An Exploratory Empirical Analysis

This study attempts to disentangle firm and country level effects on firm performance and firm ownership using hierarchical linear modeling. I argue that distinguishing country and firm level effects is complex in that firm level characteristics and strategic decision making are not independent of the national context but are embedded in both the national context and firm level stakeholder pressures. The results suggest greater country level effects for ownership than for performance. This pattern of results is consistent with stronger national level influences on ownership structure than on performance outcomes. This finding may reflect trends toward homogeneity due to the globalization of financial markets. Although I found little evidence that the identity of the largest equity owner influenced performance outcomes, several ownership classes were significant for the equation predicting the size of the largest shareholding.

Виртуализация современных финансов и ее последствия для человеческого общества

The article dwells on the content of the modern finance virtualization, replacement of the real financial sphere with images, titles, simulations with their special space, time, laws and values. Objective reasons for this process are noted: monetary origins of virtualization, equity ownership and issue of securities, derivatives as financial innovations, widespread introduction of modern means of communication and information. Special role of subjective factor in increasing the finance virtualization, when speculation is used to inflate the money supply, is shown. It is emphasized that modern finance has transformed from providing and servicing the economy into dominating the economy. Working primarily for themselves, they operate globally and are constantly in movement. They are characterized by a permanent change of ownership, blurring, diffusion of property rights, loss of control and exclusion from market self-regulation. Virtual finance is strengthening its dominance, sucking the lifeblood from material wealth, nature, man, appropriating the creative potential of society. At the same time, phenomenon of financial property and power is hidden, veiled, fictitious, dispersed throughout the world space. The paper concludes that it is necessary to reduce, to put under democratic control the growing volume of modern virtual finance both at the national and international levels, and channel it to address the socio-economic problems of society. But it cannot be limited to this. The threat to existence of the modern world civilization has necessitated preservation and protection of the basic values of human society, the main of which is the person himself with his knowledge, culture, ethics and morality. He must be a healthy, developing personality, provided with all necessary benefits. Man is at the center of society and the state, society and the state should take care of the person.

COVID-19 and entrepreneurial processes in US equity crowdfunding

ABSTRACT The COVID-19 pandemic brought about a shift in entrepreneurial opportunities in the United States. In this paper, we proxy entrepreneurial processes by examining housing prices in different regions of the United States. Housing prices capture the movement in people, tax dynamics, and behavioral preferences for equity ownership in different regions and over time, all of which were drastically impacted by COVID-19. We examine all US equity crowdfunding offerings starting with the very first offerings in 2016 Q2 until 2021 Q1 based on data from the Securities and Exchange Commission. The data indicate that regional housing prices post-COVID-19 are a strong predictor of the number of equity crowdfunding campaigns and the amount of capital raised. Moreover, the impact of housing price changes on crowdfunding is more pronounced among more prosperous regions. The housing price effect is robust to numerous controls and consideration of outliers.

Determinant Factor on Stock Price Food and Beverages Industry Sector

Purpose -This study aims to test the effect of leverage and firm size on stock price with return on owner equity as an intervening variable and managerial experiences as moderating variables. Design/methodology/approach—This study uses secondary data in the form of company financial statements from 2016 to 2020. The population is 49 consumer goods companies, and the sample is 29 companies. The data processing method used is warp PLS. Findings- The results of the study state that 1) Leverage has a significant effect on ROE; 2) Company size has a significant effect on ROE; 3) Leverage has no significant effect on stock prices; 4) Firms size has a significant effect on stock prices; 5) ROE has a significant effect on stock prices; 6) ROE is mediated effect Leverage on Stock Prices; 7) ROE is mediated effect Firms Size on Stock Prices; 8) Managerial experience is moderating effect Leverage on ROE; 9) Managerial experience is moderating effect Firms Size on ROE. Practical implications—This research has implications for companies where it is important to consider investment managers' experience when making decisions. Originality/value—This study uses a consumer goods company as the subject of research. The research is expected to assist the company in making a decision related to a manager's experience that can affect stock prices. Keywords- Leverage, Firms Size, Return On Owners Equity, Stock Price, Managerial Experiences. Paper type — Case study

Cost-effectiveness and value of information analyses of Bruton's tyrosine kinase inhibitors in the treatment of relapsed or refractory mantle cell lymphoma in the United States.

BACKGROUND: Ibrutinib, acalabrutinib, and zanubrutinib have shown improvements in efficacy and safety over conventional chemoimmunotherapy in refractory or relapsed mantle cell lymphoma (R/R MCL). OBJECTIVE: To evaluate the comparative cost-effectiveness of the Bruton's tyrosine kinase inhibitors (BTKIs) and estimate the expected value of (partial) perfect information (EV[P]PI) in terms of net health benefits (NHBs) and net monetary benefits (NMBs) forgone. METHODS: Using a two-state Markov model (progression-free; progression or death), we estimated in base-case and probabilistic sensitivity analyses (PSAs) the incremental cost-effectiveness (ICER) and cost-utility ratios (ICUR) of, respectively, progression-free survival (PFS) life-years (PFLYs) and PFS quality-adjusted LY (PFQALY) gained (g) against 3-year and 5-year time horizons. A willingness-to-pay threshold of $150,000/PFQALY was used to assess the probability of being cost-effective in the PSA. EVPI was calculated from the respective NHBs and NMBs. RESULTS: Compared with ibrutinib, acalabrutinib yielded a 3-year ICER of $90,571 (PSA = $88,588)/PFLYg and ICUR of $117,098 ($110,063)/PFQALYg, whereas zanubrutinib yielded a 3-year ICER of $58,422 ($58,907)/PFLYg and ICUR of $73,027 ($73,634)/PFQALYg. The corresponding 5-year estimates were ICER of $73,918 ($74,189)/PFLYg and ICUR of $90,512 ($90,844)/PFQALYg for acalabrutinib and ICER of $48,641 ($48,732)/PFLYg and ICUR of $61,612 ($63,727)/PFQALYg for zanubrutinib. Compared with zanubrutinib, treatment with acalabrutinib yielded a 3-year ICER of $144,633 ($134,964)/PFLYg and ICUR of $197,227 ($166,109)/PFQALYg; the corresponding 5-year estimates were $117,579 ($118,161)/PFLYg and $136,144 ($136,818)/PFQALYg. The EVPI/patient was an NHB of 0.036 PFQALYs and NMB of $3,602 forgone, resulting in a population EVPI of $134,766,957 forgone. The EVPPIs/patient for effectiveness were NHB of 0.015 PFQALYs and NMB of $1,479, with corresponding values of 0.032 and $3,187 for costs and 0.015 and $1,519 for health-related quality of life forgone. CONCLUSIONS: This early cost-effectiveness analysis based on phase I/II clinical trials of BTKIs in R/R MCL suggests an additional PFS benefit for second-generation BTKIs compared with ibrutinib. However, the relative uncertainty due to the lack of direct trial evidence may lead to an opportunity cost or lost health benefits if the current evidence is adopted to compare between these products. Additional evidence is needed to address the relative efficacy of the BTKIs. DISCLOSURES: A. McBride serves on speakers bureaus for Coherus BioSciences and Merck. He is now at Bristol-Myers Squibb in a position unrelated to this study. I. Abraham is joint equity owner in Matrix45. By company policy, owners and employees are prohibited from owning equity in client and sponsor organizations (except through mutual funds or other independently administered collective investment instruments), contracting independently with client and sponsor organizations, or receiving compensation independently from such organizations. Matrix45 provides similar services to biopharmaceutical, diagnostics, and medical device companies on a nonexclusivity basis. Of relevance to this article, Matrix45 has not provided any services to this study. I. Abraham is the quantitative methods editor of JAMA Dermatology and deputy editor-in-chief of the Journal of Medical Economics. The remaining authors have no relevant financial or nonfinancial interests to disclose.

International experience and imitation of location choices: The role of experience interpretation and assessment and its board‐level microfoundations

AbstractResearch summaryDrawing on the information‐based imitation and information‐processing perspectives, we examine how experience interpretation and assessment—and in particular its board‐level microfoundations—affects the relationship between a firm's international experience and its decision to imitate the market leader's location choices. Our results show that the negative relationship between international experience and imitation of location choices is positively moderated by board turnover, board age, and board equity ownership but not influenced by board gender diversity. These findings advance our understanding of the interplay between information‐based motives for imitation and firms' information processing and organizational learning. Specifically, we contribute to research on the effect of international experience on firms' mimetic behavior by pointing out the relevance of experience interpretation and assessment from a microfoundations perspective.Managerial summaryOur study provides indications for executives attempting to predict competitors' global strategy. When it comes to location choices, we find that companies with less international experience are more likely to follow the market leader, while those internationally experienced are more likely to follow their own path. Moreover, lower board turnover, relatively younger directors, and smaller equity ownership can favor the articulation and exploitation of the lessons offered by prior international experiences, thus further reducing the company's inclination to imitate the leader's location choices. Firms seeking an independent path toward internationalization can therefore use corporate governance—and in particular board‐level factors—to enhance their ability to interpret and assess their international experience.

A Practical Investigation of Non-Profit Organizations in the Construction Industry

Construction projects require much effort and capital funding to be successful. Financing is the most crucial piece of the construction projects. Most privately sponsored projects are funded by owner equity. However, this is not the case for non-profit organizations. Many nonprofit owners turn to organizations offering grants for their capital improvement projects as a major source of funding. Much consideration and effort are expended to obtain grants. Many grants carry specific regulations that must be obeyed to qualify and obtain funding. Therefore, finding available funding has become an increasingly difficult endeavor. Limited literature exists to guide non-profit organizations in construction projects. This research is dedicated to investigating the non-profit organizations and their fundings. The research will present a practical investigation based on literature analysis and historical cases for non-profit development projects.

DO LINKS TO TAX HAVENS AFFECT COMPANIES’ FINANCIAL PERFORMANCE? THE CASE OF SLOVAKIA

This paper aims to quantify the impact of direct equity ownership links between Slovak companies and tax havens. We distinguish between three types of tax haven: onshore, midshore and offshore. The financial impacts are measured by indicators of profitability (ROA); activity (total asset turnover); liquidity (current ratio); and bankruptcy (IN05). To measure the impacts, we link the Bisnode and Finstat databases. The first database lists those Slovak companies that had links with tax havens during 2005–2015. The second provides financial statements for all Slovak companies. It was found that: 1) There are statistically significant differences in all investigated indicators between Slovak companies with and without links to tax havens. Those with links to tax havens generally reported worse economic situations and levels of performance compared to those without such links. We conclude that having a parent company resident in a tax haven had a negative effect on financial performance. 2) There are statistically significant differences between the selected indicators of company performance, across the different categories of tax haven, and for companies with no links to tax havens. 3) Those with no such links show statistically significant correlations between all their examined performance indicators. But for those companies with links to tax havens, the only statistically significant correlation was between profitability and the remaining indicators. 4) Companies with ownership links to tax havens are clearly engaged in profit-shifting activities. The results suggest opportunities for follow-up projects, especially focusing on different industries and company size that could specify their heterogeneous approaches and variability in objectives.

Policy Announcement, Investor Attention, and Stock Volatility: Evidence From the New Energy Vehicle Industry.

New energy vehicle (NEV) policies have greatly promoted the growth of the NEV industry in China, while also attracting a lot of investor attention. Using Chinese NEV concept stocks and related industrial policies, including purchase tax incentives (PTI) and promotion and application (P&A) policies, issued from 2011 to 2020 as the research setting, this paper adopts a panel data model to examine the impact of policy announcement on the volatility of NEV concept stocks, as well as the mediating role of investor attention in transmitting the impact. We find that NEV P&A policies have a significant and positive impact on NEV concept stock volatility, while PTI policies do not have a significant impact. Moreover, investor attention plays a partial mediating role in transmitting the impact of P&A policies on NEV stock market by increasing the stock volatility risk. Furthermore, there is heterogeneous effect of equity ownership in the relationship between policy announcement and investor attention on the volatility of NEV concept stocks; non-state-owned firms are more sensitive to the NEV P&A policies than state-owned firms. By analyzing the relationship between policy announcement and concept stock volatility, this paper enriches the research on NEV concept stocks and provides policy implications for the NEV industry.

Towards a sustainable energy future: Factors affecting solar-hydrogen energy production in China

Literature reviews and interviews with experts showed that the solar-hydrogen energy market is newly established in China. The development of the solar-hydrogen energy market is a dynamic process influenced by consumers but mainly driven by producers. Thus, the relationships between solar-hydrogen energy production and consumption depend on the input-output relationship of the solar-hydrogen energy industry (SHEI). This paper used Partial Least Square – Structural Equation Model (PLS-SEM) to study the input-output relationship, the mediating effects, and the moderating effects of stakeholder characteristics. By checking the financial statements of Chinese SHEI listed companies from 2011 to 2019, we found that the fixed assets, operating costs, and R&D expenditures, total assets, and intangible assets of SHEI companies increased by year. Input had a significantly positive association with the output of Chinese SHEI companies. SHEI companies’ age, total assets, and intangible assets had significant mediating effects. The location, equity owner, and equity concentration of SHEI companies had significant moderating effects. As suggestions, it is important to construct fuel or hydrogen replenishment infrastructure, to improve cost-effectiveness and safety. Deep-level analysis of the input-output relationship, as well as possible mediating and moderating effects may also be beneficial.

Political Connections and Accounting Conservatism

ABSTRACT Firms supply accounting conservatism in response to debt/equity contracting, litigation, political costs, and taxation demand from stakeholders. I examine whether political connections between U.S. firms and politicians moderate and/or intensify the impact of these demands on the supply of conditional and unconditional conservatism. I measure political connections based on the association between firms' campaign contributions and equity ownership in firms by U.S. House and Senate representatives. I measure conditional conservatism using an earnings-return model and unconditional conservatism using a persistent negative accruals proxy. I find that political connections moderate the effect of the debt contracting (litigation) demand for conditional (unconditional) conservatism. My results demonstrate whether and how political connections of U.S. firms can affect the four demands for and the supply of the two forms of conservatism. The collective evidence suggests that political connections serve as an alternative channel to reduce stakeholders' debt contracting and litigation demand for accounting conservatism.