Treasury shares have a significant role in companies and capital markets’ regulations. As a result, it gained the attention of legislators and legal scholars. This paper examines the regulatory rules ...regarding treasury shares in Kuwaiti law, its philosophy, and practicality. The paper adopts a comparative, analytical approach addressing the historical evolution of treasury shares and comparing related regulations and legal provisions in many jurisdictions. With comparative law at hand, this paper aims to thoroughly examine the concept of treasure shares and their legal nature, their characteristics, buy-back procedures, treasury shares’ relation with the company’s capital structure, and ultimately, the uses of treasury shares. By analyzing Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and Law No. 1 of 2016 Regarding Companies Law and by incorporating comparative law such as Swiss, German, Swedish, Danish and other laws, this study demonstrates different matters related to treasury shares that are not yet regulated in Kuwait. The research assesses the legal provisions governing treasury shares, addressing matters such as shareholder rights, voting power, and market manipulation concerns. It argues for regulatory reform to further enhance the provisions governing treasury shares. As a result of the analysis given, recommendations are provided to enhance the regulatory framework in Kuwait.
The computer equipment company has been acting as an agent for a Fortune 500 manufacturer of intelligent connectivity devices in the provincial region for many years. In early 2020, due to the ...internal and external market environment, its product sales in the provincial market continued to decline significantly and its market share continued to shrink. In the face of fierce market competition, how to quickly transform marketing ideas, the use of big data and other advanced marketing methods, grasp the market demand, accurate target customers, through the expansion of sales scale and seize market share to achieve value-added revenue is a computer equipment companies to be solved the problem. Secondly, the macro environment and micro environment of computer equipment companies were analysed separately using PEST analysis and Porter’s five forces model analysis in the context of the development of China’s digital economy. The starting point of marketing strategy is customer demand, the landing point is customer service, and the core is to take customer demand as the starting point. This paper also further analyses the marketing environment of computer equipment companies by analysing consumer demand in terms of product diversity demand, higher cost performance demand, brand reputation credibility demand, and personalised demand for intelligent services.
While most firms do not grow, a small number of firms are able to maintain and accelerate their growth over time. Researchers, practitioners, and policymakers continue to question the factors which ...increase a firm's chances of growing rapidly and becoming a more powerful economic driver. Using a robust longitudinal data set from the United Kingdom (UK) during the period from 2000 to 2017, we investigate the propensity of firms to accelerate growth in sales, employment, market share, and productivity. We report varying effects of firm characteristics, industry competitive factors, and regional factors as drivers of accelerated growth. This study will help policymakers and firm managers understand the forces behind different types of acceleration, and it provides a foundation for future research on the speed of firm growth.
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BFBNIB, FZAB, GIS, IJS, KILJ, NLZOH, NUK, OILJ, SAZU, SBCE, SBMB, UL, UM, UPUK
34.
Share issuance and cash savings David McLean, R.
Journal of financial economics,
03/2011, Volume:
99, Issue:
3
Journal Article
Peer reviewed
Firms increasingly issue shares for the purpose of cash savings. During the 1970s, $1.00 of issuance resulted in $0.23 of cash savings; over the most recent decade, $1.00 of issuance resulted in ...$0.60 of cash savings. This increase is caused by increasing precautionary motives. Proxies for precautionary motives increase over the sample period, and firm-level increases in these proxies are associated with firm-level increases in share issuance–cash savings. Share issuance–cash savings are inversely related to issuance costs, suggesting that firms issue and save when costs are low, so as to avoid issuing when costs are high. This framework can also help explain patterns and trends in share issuance activity over time. Market timing does not explain these effects, as share issuance–cash savings are not related to post-issuance stock returns.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UL, UM, UPCLJ, UPUK
The geopolitical risk (GPR) index and economic policy uncertainty (EPU) index are uncertainty measures, which are tightly linked with the oil markets. This paper attempts to compare and distinguish ...the macro effects of the two uncertainty indexes on the oil market. Using the data from January 1985 to September 2020, we identify the GPR and EPU shocks within a VAR framework using the max-share identification method. We find that the EPU shock is of greater importance to the oil market than the GPR shock quantitatively. The EPU shock has a more pronounced adverse impact on the oil market and accounts for a larger share of oil market variations. The two shocks are statistically correlated, but there is no difference between ‘truly’ EPU shock and the responses of the baseline scheme. The TVP-VAR analysis confirms our main findings and further show that both shocks have time-varying impacts on the oil market. Our conclusions remain valid under different identification schemes and indicators.
•We compare the macro effects of the GPR and EPU indexes on the oil market.•Max-share restrictions and orthogonal constraints are used to disentangle shocks.•The EPU shock has a larger adverse impact on the oil market than the GPR shock.•The effect of the EPU shock resembles that of a demand shock.•TVP-VAR analysis reveals that shocks have time-varying effects on the oil market.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
If trade barriers are managed by inefficient institutions, trade liberalization can lead to greater-than-expected gains. We examine Chinese textile and clothing exports before and after the ...elimination of externally imposed export quotas. Both the surge in export volume and the decline in export prices following quota removal are driven by net entry. This outcome is inconsistent with a model in which quotas are allocated based on firm productivity, implying misallocation of resources. Removing this misallocation accounts for a substantial share of the overall gain in productivity associated with quota removal.
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BFBNIB, CEKLJ, INZLJ, IZUM, KILJ, NMLJ, NUK, ODKLJ, PILJ, PNG, SAZU, UL, UM, UPUK, ZRSKP
The article examines the use of discretionary production by key OPEC members to protect the long-term value of their reserves. Although interpretations vary on its behaviour and market power, the ...organisation sees its role as promoting the security of supply through stabilising markets while protecting market share and ensuring a fair return to capital. Given the new and perennial challenges facing its members, there are diverse views on how these policy objectives may be promoted. Using option theory, we argue that the market stabilisation policy of OPEC in effect, provides free risk management to the global market and conflicts fundamentally with its long-term objective of protecting market share through discouraging high-cost marginal producers. Abandoning this policy, the returns to marginal producers, adjusted for risk, would be reduced. As implications of our research, rather than creating a social good through mitigating price risk, OPEC should allow markets to be volatile and even consider using its discretionary buffer in a pro-cyclic manner, to protect the long-term value of its reserves.
We establish that the root cause of many goodwill write-offs is the buyers' overpriced shares at acquisition. Overpriced shares provide managers with strong incentives to exploit the overpricing by ...acquiring businesses, often paying more than the acquisition's synergies, setting the stage for subsequent goodwill write-offs. In particular, we document the following patterns: (1) Share overpricing is strongly and positively associated with the intensity of corporate acquisitions and the growth of accounting goodwill. (2) Share overpricing predicts goodwill write-offs and their magnitude. (3) Acquisitions by overpriced companies—a strategy often recommended by investment bankers and some academics—are often ill-advised (overpaid for and/or strategic misfit), exacerbating the post-acquisition negative returns of buyers beyond the reversal of the overpricing. Thus, managers' arguments notwithstanding, goodwill write-off is an important event highlighting a dysfunctional investment strategy.
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BFBNIB, CEKLJ, IZUM, KILJ, NMLJ, NUK, PILJ, PNG, SAZU, UL, UM, UPUK
We present a mechanism based on managerial incentives through which common ownership affects product market outcomes. Firm-level variation in common ownership causes variation in managerial ...incentives and productivity across firms, which leads to intraindustry and intrafirm cross-market variation in prices, output, markups, and market shares that is consistent with empirical evidence. The organizational structure of multiproduct firms and the passivity of common owners determine whether higher prices under common ownership result from higher costs or from higher markups. Using panel regressions and a difference-in-differences design, we document that managerial incentives are less performance sensitive in firms with more common ownership.
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CEKLJ, IZUM, KILJ, NUK, PILJ, SAZU, UL, UM, UPUK
This paper examines the cross-sectional relation between idiosyncratic volatility and expected stock returns. The results indicate that i) the data frequency used to estimate idiosyncratic ...volatility, ii) the weighting scheme used to compute average portfolio returns, iii) the breakpoints utilized to sort stocks into quintile portfolios, and iv) using a screen for size, price, and liquidity play critical roles in determining the existence and significance of a relation between idiosyncratic risk and the cross section of expected returns. Portfoliolevel analyses based on two different measures of idiosyncratic volatility (estimated using daily and monthly data), three weighting schemes (value-weighted, equal-weighted, inverse volatility-weighted), three breakpoints (CRSP, NYSE, equal market share), and two different samples (NYSE/AMEX/NASDAQ and NYSE) indicate that no robustly significant relation exists between idiosyncratic volatility and expected returns.
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BFBNIB, CEKLJ, INZLJ, IZUM, KILJ, NMLJ, NUK, PILJ, PNG, SAZU, UL, UM, UPUK, ZRSKP
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