Schemes of arrangement versus takeovers: implications of the choice for shareholders and directors. This project examines the use of schemes of arrangement in acquisitions. Do they disadvantage target shareholders through lower takeover premiums and less takeover competition? The results of the project will indicate whether reforms are needed to Australian takeover legislation to create a level playing field between takeover bids and schemes.
Shareholder voting at Australian annual general meetings. The Australian Corporations Act requires public companies to hold an annual general meeting (AGM) of shareholders. This project aims to address several important issues regarding the integrity, transparency, effectiveness and consequences of voting at Australian AGMs in relation to: show of hands voting, AGM characteristics and technology use, and director elections. As there is limited prior research on these matters this project expects ....Shareholder voting at Australian annual general meetings. The Australian Corporations Act requires public companies to hold an annual general meeting (AGM) of shareholders. This project aims to address several important issues regarding the integrity, transparency, effectiveness and consequences of voting at Australian AGMs in relation to: show of hands voting, AGM characteristics and technology use, and director elections. As there is limited prior research on these matters this project expects to generate significant new knowledge. The project outcomes will provide significant benefits as the findings will support moves towards best practice in governance and thereby enhance public confidence in the integrity of the Australian financial market.Read moreRead less
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
Discovery Early Career Researcher Award - Grant ID: DE120100501
Funder
Australian Research Council
Funding Amount
$375,000.00
Summary
The Advising Boards, corporate risk-taking and firm performance. Corporate governance, in particular the role of corporate boards, has been at the centre of recent regulatory reforms. To advance our understanding on the advising role of boards, this project examines boardroom social connections, entrepreneur directors, and how the advising boards contribute to corporate risk management and firm performance.
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