The Role of Directors in CorporateTakeovers. This research deals with one of the causes and consequences of mergers and acquisitions (M&A) for boards of directors of companies involved in M&As. The Federal Government's Corporate Law and Economic Reform Program (CLERP), Paper No:3 states that corporate governance practices by Australian companies should be continuously monitored by the Australian Stock Exchange and relevant industries and professional bodies. Our research on the extent to which ....The Role of Directors in CorporateTakeovers. This research deals with one of the causes and consequences of mergers and acquisitions (M&A) for boards of directors of companies involved in M&As. The Federal Government's Corporate Law and Economic Reform Program (CLERP), Paper No:3 states that corporate governance practices by Australian companies should be continuously monitored by the Australian Stock Exchange and relevant industries and professional bodies. Our research on the extent to which directors get penalised and/or rewarded for acquisition decisions depending on the outcomes of the M&A, contribute towards this monitoring.Read moreRead less
Do Some Firms Grow Too Quickly? An Investigation of Common Factors in the Underperformance of IPOs, SEOs and Mergers. Findings in line with our expectation, that equity financing transactions are followed by substantial share market losses, will greatly benefit managers of public companies, investment analysts and professional fund managers. Firms that overuse equity financing will be highlighted and can expect closer monitoring by the capital market. Analysts would review past equity raisings a ....Do Some Firms Grow Too Quickly? An Investigation of Common Factors in the Underperformance of IPOs, SEOs and Mergers. Findings in line with our expectation, that equity financing transactions are followed by substantial share market losses, will greatly benefit managers of public companies, investment analysts and professional fund managers. Firms that overuse equity financing will be highlighted and can expect closer monitoring by the capital market. Analysts would review past equity raisings and build them into their investment recommendations. The added attention should trigger changes to managers' compensation contracts and companies' governance systems. Investment funds would be redirected away from companies that squander their equity capital and channelled into more worthwhile investment opportunities. Widespread community benefits will result.Read moreRead less
A Synthesis of Agency and Managerial Power Theories and Its Applications to Corporate Governance, Management Compensation, and Firm Performance. The existing models of corporate governance in economics and finance based on agency theory do not successfully portray all modern corporations. Thus the importance of a new and rigorous way to study corporate governance can be hardly exaggerated. This project will provide a synthesized theory of corporate governance and is expected to produce highest- ....A Synthesis of Agency and Managerial Power Theories and Its Applications to Corporate Governance, Management Compensation, and Firm Performance. The existing models of corporate governance in economics and finance based on agency theory do not successfully portray all modern corporations. Thus the importance of a new and rigorous way to study corporate governance can be hardly exaggerated. This project will provide a synthesized theory of corporate governance and is expected to produce highest-quality research publishable in top-tier journals. This will, among others, enhance Australia's standing as a knowledge nation. This project is also expected to contribute to the discussions on how to improve corporate governance and regulation of management compensation both in Australia and abroad. Read moreRead less
Ownership linkages and the functioning of inter-firm capital markets during the Global Financial Crisis. A firm's dependence on outside funding can lead to catastrophic consequences in the face of a crisis that severely curtails the functioning of external capital markets. This project investigates how ownership linkages between firms improve their fundraising and investment capabilities even when facing substantial shocks to the financial system.
What do boards do? The measurement of board activity, its impact on firm valuation and board responses to the financial crisis. This study examines what corporate boards do using a novel measurement approach. It is expected that this measure will be widely adopted by industry and academia.
Discovery Early Career Researcher Award - Grant ID: DE150101889
Funder
Australian Research Council
Funding Amount
$350,000.00
Summary
Insider trading in financial markets. Insider trading destroys confidence in financial markets and undermines their fairness and efficiency. Substantial amounts of taxpayer money are spent each year in combatting insider trading, and yet cases of insider trading remain abundant. This project aims to advance our understanding of insider trading, its prevalence, social costs, characteristics and determinants, and how it responds to different penalties. This project aims to allow for more efficient ....Insider trading in financial markets. Insider trading destroys confidence in financial markets and undermines their fairness and efficiency. Substantial amounts of taxpayer money are spent each year in combatting insider trading, and yet cases of insider trading remain abundant. This project aims to advance our understanding of insider trading, its prevalence, social costs, characteristics and determinants, and how it responds to different penalties. This project aims to allow for more efficient use of regulatory resources through better rules, more accurate detection methods, and increased deterrence. It aims to benefit society through fairer and more efficient markets.Read moreRead less
Illiquidity, momentum traders, incentives, and book to market: explaining and testing the factor drivers of stock market returns. I build on my new illiquidity explanation for the equity premium based on the realisation that government bonds turn over many times faster than equity and that trading is both voluntary and endogenous. By introducing these new theoretical developments and new factors such executive incentives I aim to enhance our knowledge of what drives returns in global stock marke ....Illiquidity, momentum traders, incentives, and book to market: explaining and testing the factor drivers of stock market returns. I build on my new illiquidity explanation for the equity premium based on the realisation that government bonds turn over many times faster than equity and that trading is both voluntary and endogenous. By introducing these new theoretical developments and new factors such executive incentives I aim to enhance our knowledge of what drives returns in global stock markets. As a result researchers will have a better understanding of, and controls for, market factors to enable sound empirical work and companies will be able to lower the cost of capital via greater liquidity and improve their corporate governance structures and performance.Read moreRead less
Chief executive officer pay, incentives, talent and risk-taking: Excessive pay, regulation and the global financial crisis. The Prime Minister has requested the regulators, APRA and Treasury, to come up with rules that would prevent a repeat of the trillion dollar bailouts and guarantees to the financial sector and banks at risk of failure. Excessive pay and risk-taking by bank executives shoulder made the blame for the global crisis that has already cost Australian investors and taxpayers a siz ....Chief executive officer pay, incentives, talent and risk-taking: Excessive pay, regulation and the global financial crisis. The Prime Minister has requested the regulators, APRA and Treasury, to come up with rules that would prevent a repeat of the trillion dollar bailouts and guarantees to the financial sector and banks at risk of failure. Excessive pay and risk-taking by bank executives shoulder made the blame for the global crisis that has already cost Australian investors and taxpayers a sizeable portion of the nation's wealth. The project will greatly assist the regulators in this task. It will also identify compensation practices that reward good long-term performance without excessive pay. This could dramatically raise the performance of Australian companies and ameliorate the problem of dissatisfied investors and taxpayers.Read moreRead less
Back door listings: from hot rocks to hot stocks. The purpose of this research is to explain the incidence, characteristics and performance of firms who engaged in back door listings in the late 1990s. A back door listings is a means whereby a private company becomes listed by a merger with a public corporation.
We are focussing on a research topic that has not been examined at all in academic research. This is despite the significance of the going public process and mergers. We will provide e ....Back door listings: from hot rocks to hot stocks. The purpose of this research is to explain the incidence, characteristics and performance of firms who engaged in back door listings in the late 1990s. A back door listings is a means whereby a private company becomes listed by a merger with a public corporation.
We are focussing on a research topic that has not been examined at all in academic research. This is despite the significance of the going public process and mergers. We will provide evidence on the performance of back door listings, and our results will be the basis of suggestions to market regulators and future researchers.Read moreRead less
A New Paradigm of Financial Market Behaviour. The project contributes to the development of a newly emerging paradigm for describing financial market behaviour. It will model financial markets as adaptively evolving systems that are the outcome of the interaction of boundedly rational economic agents with heterogeneous beliefs. The new paradigm will seek to explain aspects of financial market behaviour not well explained by the standard finance paradigm. The project outcomes will be of benefit ....A New Paradigm of Financial Market Behaviour. The project contributes to the development of a newly emerging paradigm for describing financial market behaviour. It will model financial markets as adaptively evolving systems that are the outcome of the interaction of boundedly rational economic agents with heterogeneous beliefs. The new paradigm will seek to explain aspects of financial market behaviour not well explained by the standard finance paradigm. The project outcomes will be of benefit to financial market researchers and regulators by providing a better framework for understanding and managing financial market volatility.Read moreRead less