Shareholders Research Articles

Effect of Internal Financial Policy on Shareholders’ Wealth and Firm Value

This studyexamines the impact of internal financial policy on share holders’ wealth and firm value. The study uses the data of manufacturing sector firms listed on PSE. The study apply random sampling techniques for the collection of data and total 91 firms selected as sample from different sub sectors in manufacturing sector. Stock price each share and firm value per share were taken as dependent variables whereas retained earnings per share and dividend paid per share used as independent variables and net total asset per share and firm value to book value per share taken as control variables. Panel data of all these variables used to examine the relationship of internal financial policy on stock price and firm value. The findings of this study indicate that dividen payout, retained earnings, and net total assets per share have positive and significant impact on stock price where as firm book value per share ratio has insignificant impact on stock price. Dividend payout shown strong relation with stock price as compare to retained earning. Dividend payout, retained earnings, net total assets per share have positive and significance relation with firm value and firm book value per share ratio has positive butinsignificant relationship with firm value. The study has some policy implications for the users and top management of these firms.

Practical Applications of Do Tobacco Share Owners Finance the Tobacco Business?

In <b>Do Tobacco Share Owners Finance the Tobacco Business?</b>, from the Winter 2020 issue of <b><i>The Journal of Impact and ESG Investing</i></b>, authors <b>David Blitz</b> and <b>Laurens Swinkels</b> of <b>Robeco</b> evaluate the role of investors in financing the tobacco industry. Motivated by a sense of moral obligation, many investors are choosing to exclude tobacco stocks from their portfolios. However, it is unclear whether tobacco companies rely on such funds to finance expansion or other business activities. Using a case analysis, the authors determine that tobacco firms typically do not raise capital though incremental equity issuances. Instead, it is cheaper for them to use existing capital or seek funds through the bond market. Therefore, tobacco shareholders are not truly financing tobacco companies or their activities. Additionally, those who divest from tobacco stocks lose the opportunity to vote at shareholder meetings, preventing them from pushing the company toward more sustainable initiatives.

The twilight of neoliberalism in the USA?

The US economic expansion which began in 2009 was unusually prolonged but relatively weak. Profitability and investment strengthened between 2010 and 2015 but then began to falter. After Trump took office in 2017 there was a minor recovery in investment but the proceeds of major tax cuts were overwhelmingly used to finance payouts to share owners. Unemployment fell steadily from 2010 but with a shift towards lower-paid jobs. Median wages increased from around 2014, but while those for women had risen steadily since the 1980s, those for men only recuperated to their 1980 level in 2018. By contrast, top incomes soared. The impact of the COVID-19 epidemic was partly cushioned by huge government spending programmes, but unemployment among less-skilled workers increased strongly, while the massive monetary response led to an unprecedented bonanza for the rich. The Biden government's first major initiative extended unemployment benefits and promoted a national response to the health emergency, but failed to secure an increase in the national minimum wage to $15 an hour.

On the relevance of improving legal regulation of the turnover of shares in the right of common ownership of the agricultural land plots from

This article explores the problem of regulation of the turnover of shares in the right of common ownership of land plots of agricultural designation. The author substantiates the relevance of improving the current legislation, first and foremost due to annual increase in the number of unclaimed shares of agricultural lands and the impossibility of their use in civil circulation. Analysis is conducted on the existing procedure of recognizing the land shares unclaimed and their transfer to municipal ownership, indicating its inefficiency. The article considers a proposal on the amendment of civil and land legislation with regards to simplification of the grounds for transferring such objects to municipal ownership via their possible recognition as unowned property, changing the procedure for transferring such shares to municipal ownership, as well as specifying the grounds for terminating the ownership right of the subjects to unclaimed land shares in the right of common ownership of land plots of agricultural designation. The article analyzes criticism of the experts towards such initiative, objections against possible application of the Article 225 of the Civil Code of the Russian Federation to subjective rights, since it contradicts the existing concept that allows usage of rules on acquisition of the unowned property only to physical objects, as well as potential extension of the rules on terminating the property ownership. which cannot belong to an individual, in cases when the share holder in the right of common ownership on the unleased land plot of agricultural designation, would not allocate a plot assigned to him within a certain period of time.

Do Employee Share Owners Face Too Much Financial Risk?

A major theoretical objection against employee share ownership is that workers are exposed to excessive financial risk. Theory posits that 10 to 15% of a typical worker’s wealth portfolio can be prudently invested in employer stock. The authors analyze employee share ownership in US family portfolios using the 2004 to 2016 Survey of Consumer Finances. Overall, 15.3% of families with private-sector employees held employer stock in 2016, and one in six of these families exceeded the 15% threshold. Employee share ownership appears to generally add to, rather than substitute for, both pension and overall wealth. Employee share owners express higher risk tolerance and financial knowledge and greater understanding of the value of diversification. While financial risk does not appear to be a substantial problem for most employee share owners, a small minority may face excessive risk, and the authors suggest approaches to reduce such risk.

CSR Disclosure: Effects of Political Ties, Executive Turnover and Shareholder Equity. Evidence from China

The context of China fosters different contextual factors, which influences the quality of corporate social responsibility (CSR) disclosure in comparison to firms across the rest of the world. Political ties at a corporate level are one of these vital factors. This paper studies the influence of firm-level political ties (PT) and executive turnover (ET) on the quality of CSR disclosure in the context of shareholding status of departing executive in Chinese listed A-share firms. Stakeholder and Agency theories are applied to the dissemination of CSR disclosures in Chinese firms whereby we used 20,578 firm-years interpretations of Chinese registered companies between 2012 and 2019. The results foster a negative link between executive turnover and quality of CSR disclosures. In addition, a negative relationship has been found between political ties and the quality of CSR disclosure. The findings disclose that the shareholding status of departing executive moderate the relationship between the impact of political ties and executive turnover on firms quality of CSR disclosure, whilst the effect of executive turnover on the quality of CSR disclosure was found more pronounced for firms whose departing executive held larger shareholding (SH). This study contributed to the literature on the quality of CSR disclosure while recognizing the negative effect of executive turnover on a firm’s quality of CSR disclosure for politically tied firms with a reinforcing moderating role of the shareholding status of departing executive.

Tikkurila shareholders accept PPG acquisition bid

Tikkurila shareholders accept PPG acquisition bid

An Analysis of the Regulations against Pursuing Private Benefits by Controlling Shareholders in Corporate Law and Economic Law

An Analysis of the Regulations against Pursuing Private Benefits by Controlling Shareholders in Corporate Law and Economic Law

The Restrictive Interpretation of De Facto Control with Regard to Deemed Acquisition Tax of Oligopoly Shareholders

The Restrictive Interpretation of De Facto Control with Regard to Deemed Acquisition Tax of Oligopoly Shareholders

Analysis of the relationship between characteristics of professional managers and user innovation activities - focusing on the moderating effect of managers shareholding -

Analysis of the relationship between characteristics of professional managers and user innovation activities - focusing on the moderating effect of managers shareholding -

论股东的诉权——以提案权引发的讨论

论股东的诉权——以提案权引发的讨论

The issue of absent shareholders

The issue of absent shareholders

Negative Impact of COVID-19 Lockdown Upon Health-Related Behaviours and Psychological Wellbeing in People Living with Severe and Complex Obesity in the UK

Background: Coronavirus disease 2019 (COVID-19) had an unparalleled impact and in particular for people with pre-existing health conditions who in some instances were left unsupported due to reduced provision of routine healthcare services. People living with obesity (PLWO) are identified as at higher risk of severe illness from COVID-19 infection. Currently, there is a paucity of evidence about the COVID-19 lockdown on PLWO, including those accessing weight management and bariatric surgery services.Methods: Using an online survey, 543 UK PLWO were recruited. People were invited through social media advertisements, UK charities, obesity advocacy groups, obesity organisations and weight management services.Findings: PLWO reported that health-related behaviours such as diet, physical activity and sleep were adversely impacted during the first COVID-19 lockdown. Depression, wellbeing and self-reported mental health played a significant role in predicting changes in health-related behaviours. Most PLWO attending weight management services reported reduced access with insufficient communication from their clinical service providers. Perceived stigma remained unchanged during the first COVID-19 lockdown, with the majority of people reporting not experiencing stigma as compared to before COVID-19.Interpretation: This study shows the detrimental impact of COVID-19 on PLWO in relation to health-related behaviours, mental health and access to healthcare services and support. Our findings highlight the need for greater mental health support for PLWO during future lockdowns.Funding: This research was funded through University College London and National Institute for Health Research (NIHR) Biomedical Research funding.Declaration of Interests: AB has received funding for investigator-initiated research through an educational grant and travel grants from Cambridge Weight Plan Ltd, received support to attend an obesity conference from Novo Nordisk and is on the scientific advisory board and share holder of Reset Health Clinics Ltd. RLB consultancy with Boehringer Ingelheim, GSK, Novo Nordisk, and Pfizer. MOK has received honorium and support to attend an obesity conference from Novo Nordisk. SW has received international flights, accommodation and subsistence from Novo Nordisk to attend obesity-related meetings. There are no other declarations of interest. Ethics Approval Statement: The study was granted ethical approval by the UCL Research Ethics Committee (REC number 16191/004).

ПЕРЕВАГИ ТА НЕДОЛІКИ ВАРТІСНО-ОРІЄНТОВАНОГО ПІДХОДУ ДО УПРАВЛІННЯ ПІДПРИЄМСТВОМ

he article investigates the features of using a value-oriented approach to enterprise management in modern changing eco-nomic conditions. It is established, that the urgent problem today is to determine a reasonable target for value-oriented manage-ment. The application of indicators and models of enterprise valuation adequate to the Ukrainian economic conditions is analyzed. The advantages of the indicator of the value of the enterprise as the main criterion for assessing the efficiency of economic entities are identified. The foreign experience of introduction of the value-oriented approach in the management of the enterprises is ana-lyzed. The main directions of increasing the value of the company are formulated. It is established, that the indicator in the system of value-oriented management approach should reflect the value of the company and the effectiveness of management decisions. The main goal of the value-oriented management system is formulated, which is to coordinate and motivate decision-making that will lead to long-term competitive advantages. It was found, that companies which use the principles of value-oriented approach in management, have advantages over companies in similar areas of business that use traditional tools for making management decisions. The advantages of the value-oriented approach and obstacles in its implementation in the management of Ukrainian enterprises are identified. According to the VBM approach, the main indicator of evaluating the results of the enterprise is its value. This indicator of the value-oriented approach has certain advantages over traditional criteria for assessing the effectiveness of the company. It is noted, that using the approach of cost-oriented management of the enterprise does not always cause positive changes in the company's activities, which is caused by such major problems as difficulties in setting motivational goals and incon-sistency between EVA and shareholder value. It is proposed to take the maximization of the market value of the domestic enterprise as a benchmark for ensuring its positive results.Keywords: Value Based Management, value-based approach, value of company, value assessment, added value. У статті досліджено особливості використання вартісно-орієнтованого підходу до управління підприємством в сучасних мінливих економічних умовах. Виявлено переваги показника вартості підприємства як основного критерія оцінювання ефективності діяльності суб’єктів господарювання. Проаналізовано зарубіжний досвід впровадження вартісного підходу в управлінні підприємствами. Сформульовано основні напрямки підвищення показника вартості компанії. Визначено переваги вартісно-орієнтованого підходу та перепони у його впровадженні в управлінні підприємствами України. Запропоновано приймати максимізацію ринкової вартості вітчизняного підприємства за орієнтир забезпечення його позитивних результатів діяльності. Ключові слова: вартісно-орієнтоване управління, вартісний підхід, вартість компанії, оцінка вартості, додана вартість.

Robbing Peter to Pay Paul: Earnings management practices in Brazilian SOEs

Objective: The accounting information can be manipulated in order to change the perception of the minority shareholders about the real situation of the firm. In case of state-owned enterprises (SOEs), they can have their wealth expropriated by the politicians and bureaucrats’ opportunistic behavior, which is an incentive to the earnings management (EM) practice. This study aims to analyze the state ownership effects on EM in Brazil, and investigate the link between EM, and ownership and control structures. Method: Data from 2006–2015 , for 250 non-financial Brazilian public firms, which covers 26 SOEs. The analyses are based on multiple regression methods with panel data. Originality/Relevance: This study innovates by including in this analysis the interaction of state control with the excess of control rights over the ownership rights of the largest shareholders, and analyze the entrenchment effect. Additionally, addresses the EM both in terms of direction and breadth. Results: SOEs tend to take on income-increasing practices, which persisted even after the adoption of International Financial Reporting Standards (IFRS). However, the IFRS adoption led to a reduction in the level of EM, in special the positive trend. Yet, the firms' market value and size are significant for explaining EM. Theoretical/Methodological contributions: this study helps to understand the behavior of Brazilian SOEs, while reveals the SOE's political influence can induce greater information asymmetry and the control is more concentrated in there, which supposedly raises the risks of minority shareholders' expropriation. These results suggest the need for improvements in the transparency of these companies.

WOMEN EQUAL SHAREHOLDERS IN HINDU JOINT FAMILY, WITH SPECIAL REFERENCE TO THE CASE OF - VINEETA SHARMA VS RAKESH SHARMA &amp; ORS

This Research Paper will coverthe concept of–whether women have equal shares over the coparcenary property or not &amp; on the other hand it will also discuss the landmark judgment of Vineeta Sharma V/S Rakesh Sharma which has opened up a space for the women to have equal shares in the ancestral property of Hindu Undivided Family.Since the inception of the Hindu Succession Act, 1956 the provision for the division of property of Hindu Undivided Family was only limited to the sons but the amendment of 2005 made some of the special changes to the act, adding daughters as the equal shareholders to the coparcenary property and even this amendment providedthat,the daughter can be the Karta of the Hindu Undivided Family.With special reference to the case of Vineeta Sharma vs Rakesh Sharma this research note will provide in-depth analysis with conflicting case laws where it will be put forth whether the coparcenary property are the property of the sons or even the daughter can claim for equal shares over the Hindu Undivided Family property.

Knowledge level of KVK experts about Farmers Producer Company’s (FPC)

Small and marginal farmer do not have economic strength to adopt advanced production technologies, services and marketing including processing and value addition. Through formation of FPCs farmers will have better collective strength for better access to quality input, technology, credit and better marketing access through economies of scale for better realization of income. Therefore, during lockdown period online study was under taken to measure knowledge level of KVK Subject Matter Specialist (Extension Education), KVK SMS of other disciplines, stake holders from NABARD and ATMA (MACP). Knowledge test was administered to the 65 respondent in the Google form, which has reduced influence of interviewers and ease of filling the interview schedule. A total 65 respondents were selected and a knowledge test consisting of 17 dimensions was prepared to measure their knowledge level. The study revealed that majority of the respondents had awareness regarding farmers producer company’s profit sharing, followed by company registration under companies act, information about ownership and management as a share holders and priority sector for formation of farmers producer company’s. It is also found that respondent had poor knowledge about processing, marketing, branding of produce by FPC, benefits of formation of FPCs, followed by implanting agencies for FPCs and financial sustainability of FPCs. Categorization of respondents based on their knowledge level indicate that majority of respondent were in high level of knowledge i.e. 41.53 per cent respondent have high level of knowledge followed by 32.30 per cent in medium level while 26.15 per cent low level of knowledge category. In order to enhance farmers income and empowers small and marginal farmers promotions of farmers producer company has intervention for agril. entrepreneurship development.

A Study of Blockchain Technology-based Electronic Voting in Shareholders' Meeting

A Study of Blockchain Technology-based Electronic Voting in Shareholders' Meeting

Do Tobacco Share Owners Finance the Tobacco Business?

Many investors do not want to finance morally objectionable activities, such as smoking tobacco, with their money. But is investing in the shares of tobacco companies the same as financing the tobacco business? Analyzing two decades of data, this study finds that investors in tobacco shares have not provided any fresh capital to tobacco firms for expanding their operations, so the buying or selling of tobacco shares is just a financial exchange and a transfer of ownership between two investors. The authors find evidence for capital flows in the opposite direction, namely tobacco companies repurchasing their own shares in the open market. The results suggest that divesting from tobacco stocks is ineffective at improving public health or at increasing the cost of capital of tobacco firms, and moreover, investors lose the right to vote and initiate proposals at shareholder meetings. The authors conclude that sustainable investors may wish to differentiate their policies, depending on the external financing needs of companies. <b>TOPICS:</b>Equity portfolio management, ESG investing, portfolio management <b>Key Findings</b> • Investors in tobacco shares have not provided any fresh capital to tobacco firms for expanding their business. • Divesting from tobacco stocks appears ineffective at improving public health. • Share owners may have more real impact with active voting and engagement.

Corporate Giving Decision: Agency Problem Hypothesis vs. Shareholder Wealth Maximization Hypothesis

We examine the determinants and consequences of corporate giving decisions by agency theory, corporate governance mechanisms, and shareholder wealth maximization. The results show that firms with more serious agency problems are more likely to engage in persistent corporate giving, while firms engaged in maximizing shareholder profits are more likely to engage in one-off corporate giving. Moreover, as corporate giving increases, shareholders reduce their valuation of firm cash holdings, and investors respond negatively to corporate giving. Using subsamples, institutional settings are examined to explore the differences in giving decisions between family businesses and professional managers. Key words: Corporate giving decision, agency problem, corporate governance, shareholder wealth maximization