Share Purchase Research Articles

The price behavior around initial loan announcements: Evidence from zero-leverage firms in the UK

This paper analyses price effects of trades around the initial loan announcements for 96 zero-leverage firms listed on the FTSE 350 index over the time of period 2000–2015. Using a very large sample size of 28 million share purchases and 26 million share sales, we discover price continuations follow buys and reversals follow sales. We also observe that purchases have a greater impact on permanent price changes. Once price effects are estimated using quote returns to eliminate the bid-ask bias, the asymmetry in buyer and seller initiated trades is dramatically reduced. Our results suggest that the bid-ask bounce can explain asymmetry in the trading direction of zero-leverage firms when they encounter debt for the first time.

ANALISA PENGARUH KRISIS SUBPRIME MORTGAGE TERHADAP INDIKATOR RETURN SAHAM INDUSTRI KONSUMSI YANG TERDAFTAR DI BEI

The economic crisis of 2008, better known by the Subprime Mortgage crisis, greatly affecting the economic conditions and the capital markets at that time, especially for the economy and capital markets in the country where was the crisis came from, the U.S. and also in other developed countries, such as Japan Germany, France, etc. Behind of gloomy capital market conditions in some of these countries, there are still a few other countries that are not affected at all and even influence those that experience an increase in capital market transactions. According to economic experts, one of these countries is Indonesia, with one of the indications is that the share purchase transaction to the consumer sector firms in Indonesia was increased significantly. That's why this study was conducted to examine the effect of the economic crisis of 2008 to the indicators stock return sector consumption listed on Indonesia Stock Exchange (BEI). This study uses data of annual financial statements published by companies in the consumer sector from 2004 up to 2012. Analysis techniques used in this study is a multiple linear regression with different test of an average value and test of different regression models. The results showed, there were significant differences in the regression model stock returns in the period before and after the economic crisis, and there was significant difference in the average value of the variable ROA and CR as a result of the economic crisis Subprime Mortgage

How does access to luxury fashion challenge self-identity? Exploring women's practices of joint and non-ownership

This paper examines how the practices of access, borrowing, and sharing (including shared purchase) influence women's self-identity in the world of luxury clothing and accessories. In the context of joint- or non-ownership, using 28 semi-structured interviews across three age groups, this qualitative research explores and contrasts the various practices of access, borrowing, and sharing (including shared purchase) with regard to the self–object relationship. The results underline the identification and appropriation process at stake in access to luxury fashion, which runs counter to prior research on access-based consumption. The research shows the liquid transformation of self-identity inherent in access, borrowing, and sharing practices (but not present in shared purchase), as well as the positive contamination of the owner's image in the case of borrowing, sharing, and making shared purchases – but not in the case of access.

Divulgações de informações e o efeito no retorno de ações da maior empresa de educação listada na B3 (Brasil, Bolsa, Balcão)

O mercado é eficiente se novas informações relevantes causarem variação no retorno das ações. As ações podem ser afetadas por eventos e isso pode causar oscilações. A pesquisa analisa a reação do mercado à divulgação de informações sobre a maior instituição de educação listada na B3. Foi utilizado o estudo de eventos para confrontar o comportamento do retorno das ações no período de 30 de setembro 2015 a 30 de setembro de 2017. A pesquisa parte da teoria de mercado eficiente. As informações selecionadas foram distribuídas em grupos, sendo: A - Divulgação dos resultados trimestrais; B - Operações de compra e venda de participações; C - Mudanças relacionadas ao Financiamento Estudantil. Os resultados evidenciaram que a reação que caracterizou o fator mercado eficiente foi identificada no Grupo C, em parte corroborada pelo comportamento do preço da ação.

Changes in South African executive share-based remuneration

Orientation: Institutional theory proposes that companies respond to environmental factors (such as changes in accounting requirements and the economy) in order to gain or retain legitimacy. As such, environmental factors can affect executive remuneration paid by companies. Research purpose: The purpose was to determine whether the implementation of International Financial Reporting Standard (IFRS) 2 as well as the financial recession affected the characteristics of share-based remuneration paid to South African executives. Motivation for the study: Stakeholders should be aware of whether environmental factors influence business practice relating to share-based remuneration (especially in an emerging economy, such as South Africa, where international evidence might not be applicable). Research design/approach and method: Share-based remuneration details of the chief executive officers of 28 South African listed companies were obtained for the period 2002–2009 (these dates were chosen to include both the effective date of IFRS 2 and the financial recession). Data were analysed (using analysis of variance and generalised estimating equalisation techniques) to determine whether there were statistically significant differences in the share-based executive remuneration between the period before and after the effective date of IFRS 2, as well as before and during the financial recession. Main findings: Share options usage decreased after the effective date of IFRS 2, and even further during the recession. Share-appreciation rights were increasingly used after the effective date of IFRS 2 and seemed to have replaced share options subsequent to the implementation of IFRS 2. The use of share purchase plans decreased during the recession and was replaced by performance shares. Performance vesting conditions were more prevalent in share-based remuneration schemes in the post-IFRS 2 period. Practical/managerial implications: Shareholders and regulators should take cognisance of the fact that business practice in respect of share-based remuneration is affected by new accounting standards and the economy. Contribution/value-add: This study addressed the knowledge gap in the literature regarding the effect of IFRS 2 and recession on executive share-based remuneration in emerging economies, and specifically in South Africa.

Treaty Benefits Denied for Capital Gains Where Shareholder Not “Real” Owner of Shares

This case note reviews the ruling issued by the Authority for Advance Rulings to AB Mauritius, which stated that, because AB Mauritius held shares in an Indian company in name only, the gain derived on an intra-group transfer of the shares did not escape tax in India under article 13(4) of the India-Mauritius income tax treaty. Instead, the Authority determined, on the basis of the share purchase agreement and board meeting minutes, that, in reality, the shares in the Indian company were owned by AB Mauritius’s United States owners and the gain on the transfer of the shares was taxable in India in accordance with the India-United States tax treaty.

BANKING CONDITIONS OF CONSERVATIVE STORAGE (ESCROW) AS A MECHANISM FOR IMPLEMENTATION OF FORCED EXCHANGE OF SHARES (SQUISE-OUT) IN UKRAINE: PROBLEMATIC ISSUES

Urgency of the research. The topic is relevant, since legislative regulation of accounts of this type occurred in March-June 2017, and subordinate regulation – at the end of 2017. Target setting. To investigate the peculiarities of conditional storage (escrow) accounts functioning in Ukraine. Actual scientific researches and issues analysis. Due to the lack of a relevant regulatory framework until recently, the peculiarities of the operation of the escrow accounts, taking into account Ukrainian specificity, were not investigated. Uninvestigated parts of general matters defining. Although Escrow accounts were widely considered in foreign literature, the Ukrainian specificity of these accounts has not been studied. The research objective. Submit substantiated proposals to improve the mechanism of the operation of escrow accounts based on an analysis of the newly adopted legislation on these issues. The statement of basic materials. It is shown that this type of accounts was actually implemented for a specific purpose – the implementation of compulsory share purchase (squeeze-out) in Ukraine, which left its imprint on the inconsistency with the traditions of global regulation. In Ukraine the conclusion of contracts for the opening of escrow accounts is usually made between the client of the bank (the account holder) and the bank itself, without participation and, accordingly, without taking into account the interests of the beneficiaries; accordingly the account belongs to the named «holder». In the context of the implementation of the squeeze-out procedure, the issue of the proper identification of minority shareholders who sell shares is not resolved, which is likely to lead to difficulties in obtaining funds for these shares. Neither the laws nor the subordinate regulation are aimed at protecting the rights of minority shareholders in the process of squeeze-out. Conclusions. In order to bring Western-style legal regulation of the operation of escrow accounts and protect the rights of minority shareholder – beneficiaries, appropriate changes must be made to the legal regulation.

Literature Review on New Generation Cooperative Enterprise Architecture

Cooperative is a legally incorporated business organization, that built collectively by their member, and aim to fulfill their needs. New version of Cooperative is called New Generation Cooperative (NGC) that has characters as: NGC may issue shares, individuals may hold higher levels of equity through purchase of share, and membership may be limited to shareholders. Enterprise Architecture is the comprehensive conceptual design or blueprint of company and organization, which describes it’s the structures, function, and operations. The purpose of the research is to design the Enterprise Architecture for NGC. This NGC can be started as a low cost enterprise by implementing Open Business Model. The Open Business approach places value on transparency, stakeholder inclusion, and accountability. This research shall purpose the Technology part of Strategic Management, which can relate New Generation Cooperative Enterprise Architecture as new category for Open Business Model.

Engie buys controlling stake in Electro Power Systems, global rollout

French multinational electric utility Engie has signed a share purchase agreement with the main shareholders in Electro Power Systems SA, the Paris/Milan-based technology pioneer in energy storage systems and microgrids, to acquire a majority stake in EPS, slightly above 50% of the share capital and voting rights.

The information content of insider trading: Evidence from China

We examine the source of return predictability by insider trading in the setting of China’s stock market from 2005 to 2016. We find that insiders’ net share purchase contains favorable information about earnings beyond what is incorporated in the current stock market. We further show that the information contained in insiders trading is about operating rather than the non-operating component of earnings. We also find that firms with significant net share purchase are not associated with lower earnings quality afterwards. Overall, we provide evidence that insider trading delivers significant value-relevant information about earnings to the stock market.

CORPORATE CONTROL TRANSACTION IN ACQUISITION UNDER THE INDONESIAN LAW

Acquisition has been extensively regulated in the Indonesian Company Law and various implementing regulations. In general acquisition denotes a purchase of all or substantial shares of a company resulting in transfer of control of the company. However, the regulatory concept of share purchase transaction in acquisition has developed into the concept of corporatecontrol transaction. This paper observes to what extent the Indonesian corporate legislation regulates the corporate control transaction, in particular in the securities or capital market regulations.

Nel completes deal to acquire Proton OnSite, and JV with PowerCell

Norwegian-based Nel ASA has completed the share purchase agreement to acquire Proton OnSite in the US from its owner F9 Investments LLC. Nel is now the world's largest manufacturer of water electrolysers for hydrogen production, offering both alkaline and PEM electrolysers in all sizes and markets. The company has also finalised its agreement with Hexagon Composites in Norway and PowerCell Sweden to establish a joint venture to develop integrated hydrogen projects.

A influência dos ativos intangíveis na relevância da informação contábil

http://dx.doi.org/10.5007/2175-8069.2017v14n31p26O objetivo do presente estudo foi analisar a influência dos ativos intangíveis na relevância da informação contábil. A metodologia utilizada caracterizou-se como descritiva, documental e quantitativa. A amostra do estudo constituiu-se de 164 empresas listadas na BM&FBOVESPA, no período de 2010 a 2013. A análise das informações foi realizada por meio de regressão de dados em painel, com a utilização dos softwares STATA e SPSS. Os resultados apontaram que lucro líquido, patrimônio líquido, ativo intangível, goodwill, patrimônio líquido ajustado e lucro líquido ajustado são informações relevantes para o mercado de capitais, as quais impactam no preço das ações até 6 (seis) meses depois de publicadas as demonstrações financeiras. Esses resultados revelam a importância para o mercado de capitais das informações contábeis ora apresentadas, tanto as tradicionais - como lucro líquido e patrimônio líquido - quanto as relacionadas aos ativos intangíveis. Tais informações contábeis demonstraram-se relevantes para os investidores decidirem na compra e venda de ações. Desta forma, infere-se a necessidade das empresas divulgarem seus ativos intangíveis, uma vez que tal prática pode contribuir para o aumento do preço de suas ações no mercado de capitais.

Beneficial Ownership and Derivatives: Has the Swiss Federal Supreme Court Decision in the SMI Futures Case Put an End to ‘Cash-Futures Arbitrage’?

The Swiss Federal Supreme Court recently decided a second case dealing with the question of beneficial ownership of dividends. The dividends were economically passed on to third parties in transactions involving cross-border derivatives. In the SMI Futures Case, the court denied a Danish bank a refund of dividend withholding taxes under Article 10 of the Switzerland/Denmark Double Taxation Convention (1973) as it did not regard the Danish bank as the beneficial owner of the dividends. The Danish bank was the legal owner and physical holder of equity baskets comprising the twenty largest Swiss equities, which form the Swiss Market Index (SMI). The Danish bank was also the direct recipient of the dividends from these shares. The equity baskets were hedged with SMI futures. The Federal Supreme Court suggested that the Danish bank failed in its obligation to provide information and cooperate with the tax authorities. The resulting lack of information on the facts of the transactions could not be remedied. The court maintained that the Danish bank passed the dividends on by way of non-market standard purchase and disposal prices of the Swiss shares. It regarded the interposition of a broker acting as a principal in the share purchase and sale as an indicator of the circularity of the whole transaction. It further suggested that the Danish bank transferred all market risks in the transactions to its parent company and to third-party counterparty banks. The court concluded that there was an interdependence between obtaining the dividends and passing them on to the Swedish parent company and/or other counterparty banks. After a critical analysis of the case, the article illustrates various examples of cash-futures arbitrage transactions (equities versus futures) with slight economic differences between the various forms of cash-futures arbitrage but potentially different taxation results. Beneficial ownership of the dividends may only be attributed to the physical holder (and legal owner) of the shares and direct recipient of the dividends in those cash-futures arbitrage transactions which are traded anonymously on exchange. Based on the decision of the Swiss Federal Supreme Court, beneficial ownership could be denied to the legal owner and physical holder of the shares (and direct recipient of the dividends) in cases where transactions are executed either over-the-counter (OTC) or as OTC-style block crosses on exchange.

Are All Government Owners Viewed the Same? Evidence from Government Acquisitions of Publicly Traded Firms

I study shareholder wealth effects associated with different types of government investors and varying levels of political interference in a sample of 2,118 government equity investments spanning 71 countries from 1987 to 2013. The results indicate that government investors are not viewed by the market as a homogeneous group. Investors differentiate their expectations of government investment targets based on the government investor’s implied level of political interference. Government investors that are most likely to have political motivations have negative value effects on target firms, while other government investors have positive effects, similar in size to other non-government investors. The negative effects are stronger for investments in domestic firms, in more regulated industries, by left-wing governments, and for large share purchases. Post-acquisition performance is weaker for targets of politically motivated government investors and is consistent with the pursuit of non-profit maximizing objectives by these investors.

The Impact of Fiscal State Aid Recovery Risks on Share Purchase Agreements

Fiscal State aid risks represent real risks with a significant financial impact on the beneficiaries of the aid. These risks must be taken into account when negotiating a share purchase agreement. In this article, the authors flag the relevant fiscal State aid issues in such negotiations and compare how lawyers in Belgium, Germany, Italy, Luxembourg, the Netherlands, Spain and the United Kingdom should deal with fiscal State aid risks in a share purchase agreement.

Innovation and Insider Trading

The study finds that insiders' purchases in large firms precede the patent applications for innovations. US publicly held large firms increase their innovation quality by 25% subsequent to the share purchase of top insiders, as measured by non-self citations received per patent applied. The average cumulative abnormal returns of insiders on their purchases prior to the important patent applications are economically large and significant especially in the long run. The use of private information by insiders seems to be less prevalent in firms with better corporate governance. Firm innovation quality also deteriorates after insiders sell their share in the company

Peran dan Tanggung Jawab Lembaga Penjamin Simpanan dalam Penanganan dan Penyelamatan Bank Gagal Berdampak Sistemik

The problem of this research is related to the roles and responsibilities of Deposit Insurance Agency (LPS) in handling and rescuing Bank Mutiara as a failed bank leading to systemic effects. This research used empirical legal method. The findings show that the management and rescue of Bank Mutiara was done by LPS by conducting temporary capital investment. At the final stage of the rescue process, LPS conducted share divestment of Bank Mutiara to J. Trust Ltd as a potential investor by making agreement of conditional purchase and sale of share.

ANALISA FAKTOR-FAKTOR YANG MEMPENGARUHI HARGA DAN PERKEMBANGAN SAHAM SYARI’AH DI INDONESIA

Eka Sri Wahyuni; The purpose of this study was to determine the factors - factors that affect stock prices and the development of Shari'ah in Indonesia. The method used in this library research. The results in this study is the movement of the stock price is affected by many factors. There are micro factors, there are also macro. In addition, the factors that affect stock price consists of fundamentals and technical factors. The fundamental factors are very important, because the share price is highly correlated with the company's ability to create future profits for shareholders. While technical factors are stock prices affected by movements in the share purchase price, number of shares traded and other data sourced from the market. Both fundamental and technical factors used as a quantitative analysis to determine the previous data on interest rates, economic variables and the value of stocks. This analysis is very important for investors to make a decision to invest in shares.Key Word: Stock Price Sharia, Islamic Shares Number of Transactions

Corporate governance and private placement issuance in Australia

AbstractIn this study, we examine the effectiveness of corporate governance in mitigating dilution in the economic and voting interests of existing nonparticipating (retail) shareholders in private placements. Based on a sample of 2420 private placements in Australia from 2001 to 2012, we find support for this proposition through the influence of corporate governance on pricing negotiation and firms’ choice of issuing method in private placements. Specifically, firms with better corporate governance offer private placements with a smaller discount, and are more likely to include a share purchase plan, which protects nonparticipating shareholders from ownership dilution in the placement.