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1 – 10 of 863Marlin R.H. Jensen, Beverly B. Marshall and William N. Pugh
This study seeks to investigate whether a firm's financial disclosure size can help investors predict performance.
Abstract
Purpose
This study seeks to investigate whether a firm's financial disclosure size can help investors predict performance.
Design/methodology/approach
Controlling for size and industry, the relationship between financial disclosure size and subsequent stock performance for all Standard and Poor's (S and P) 500 firms over a seven‐year period is examined.
Findings
It is found that firms with smaller 10‐Ks tend to have better subsequent performance relative to their industries. However, the findings suggest that the performance explanation may not lie in the size of the 10‐K itself. Firms with smaller 10‐Ks tend to perform better because they are smaller in terms of total assets and more focused, with fewer business segments.
Research limitations/implications
While the study is limited to examination of S and P 500 firms, no consistent evidence is found of a relation between changes in a firm's disclosure size and future performance changes.
Practical implications
The results suggest that more disclosure relative to a firm's size is not necessarily bad. Investors attempting to predict future firm performance cannot use the firm's disclosure size alone.
Originality/value
This paper extends two recent Merrill Lynch studies that appear to contradict the extant financial literature's view that increased disclosure reduces the informational asymmetry problem. While the results confirm the findings of these studies, they suggest that the performance explanation may not lie in the size of the 10‐K itself.
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Steven B. Caudill, Carl D. Hudson, Beverly B. Marshall and Anastasia Roumantzi
This paper aims to extend the work by Vafeas and Lie and Lie by developing an empirical model of choice among four alternative mechanisms for distributing cash from corporations…
Abstract
Purpose
This paper aims to extend the work by Vafeas and Lie and Lie by developing an empirical model of choice among four alternative mechanisms for distributing cash from corporations to shareholders: a fixed‐price self‐tender offer, a Dutch auction self‐tender offer, an open market share repurchase, and a special dividend.
Design/methodology/approach
A multinomial logit (MNL) model adapted for choice‐based sampling is used to examine the factors that influence a firm's choice among the four methods.
Findings
Firms with a high degree of heterogeneity in shareholder valuations tend to select an open market repurchase, while firms with low levels of heterogeneity choose a special dividend. Firms already paying high dividends are more likely to issue a special dividend than institute an open market repurchase. A firm with poor stock performance prior to the announcement is more likely to choose a fixed‐price self‐tender offer or open market share repurchase. On the other hand, firms are more likely to follow strong performance with a special dividend. Contrary to Persons' model, it is found that firms facing a takeover threat are more likely to choose a fixed‐price tender offer than a Dutch auction.
Practical implications
It is shown that the ownership structure, current payout level; the size of the distribution, and the degree of stock undervaluation are among the most important determinants of a firm's choice among alternative payout methods.
Originality/value
This study adds to the existing literature by developing the first empirical model of choice among all four one‐time (or infrequent) corporate cash disbursement methods. It is also the first to adjust the MNL estimates for the choice‐based sampling method used to collect the data.
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Nancy A. Gigante and William A. Firestone
This paper aims to explore how teacher leaders help teachers improve mathematics and science teaching.
Abstract
Purpose
This paper aims to explore how teacher leaders help teachers improve mathematics and science teaching.
Design/methodology/approach
Research focused on a purposive sample of seven teacher leaders selected to vary in their time allocated to teacher leader work and their content knowledge. Each teacher leader was interviewed, as were two teachers and at least one administrator working with that teacher leader. Each interview was first subjected to a mix of deductive and inductive coding before a case study was written for each teacher leader. Ultimately, a cross‐case analysis was written.
Findings
Teacher leaders conducted two sets of leadership tasks. The paper finds that support tasks helped teachers do their work but did not contribute to teacher learning. Developmental tasks did facilitate learning. All teacher leaders engaged in support tasks, but only four did developmental tasks as well. Teacher leaders who engaged in developmental tasks had access to one material resource and three social resources not available to other teacher leaders: time to work with teachers, administrative support, more positive relations with teachers, and opportunities to work with teachers on professional development
Practical implications
When teacher leadership is intended to facilitate teacher learning, the payoff comes from engaging in developmental tasks. A key to teacher leader success is administrative support. Schools and districts should not invest in teacher leaders unless they intend to support teacher leaders adequately through time, administrative follow through, and training to help teachers develop the positive social relations on which their work depends.
Originality/value
These findings have implications for how to integrate teacher leaders into larger school improvement efforts.
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The first Principia Mathematica (1686) by Sir Isaac Newton with reference to natural philosophy and his system of the world has largely contributed to the first revolution in…
Abstract
The first Principia Mathematica (1686) by Sir Isaac Newton with reference to natural philosophy and his system of the world has largely contributed to the first revolution in scientific thinking in modern times. It has created the conceptual basis of modern science in the classical tradition by providing the tools of analysis and the technique of reasoning in terms of stability—from—within or, as we would say today, the model of stable equilibrium conditions.
The purpose of this paper is to examine the impact of greater reporting prominence of translation results following Accounting Standard Update (ASU) 2011-05 on net investment (NI…
Abstract
Purpose
The purpose of this paper is to examine the impact of greater reporting prominence of translation results following Accounting Standard Update (ASU) 2011-05 on net investment (NI) hedging practice. The authors investigate the role of increased transparency on the decision to engage in NI hedging (participation), the degree of NI hedging (level) and the hedging vehicle choice.
Design/methodology/approach
This paper uses the Heckman two-stage procedure (Heckman, 1979) in the hedging choice analysis. In the first stage, the authors model the participation decision as a function of reporting transparency, translation results and other control variables. In the second stage, the authors include the Inverse Mills ratio from the first stage Probit to examine both the level and vehicle choice decisions.
Findings
When translation is reported more prominently, the authors find an increase in the level of NI hedging and a greater likelihood of debt as the hedging vehicle, but no evidence firms are more likely to hedge. Regardless of where translation results are reported, firms facing ongoing translation losses are more likely to hedge.
Research limitations/implications
This paper examines S&P 500 firms in the years surrounding the effective date of ASU 2011-05. The findings suggest managers respond to the increase in reporting transparency by increasing hedging for long-term risk management purposes, supporting accounting authorities’ efforts to promote other comprehensive income information transparency. The results should hold for comparable firms with similar currency exposure, size and visibility, but may not apply to smaller firms with limited translation exposure. As only about a quarter of firms with translation exposure engage in NI hedging, the primary results are based on a relatively limited number of firms.
Originality/value
To the best of the authors’ knowledge, this is the first study that examines NI hedging behavior changes following ASU-2011-05. Second, the authors are the first to explore why firms are almost equally split between derivatives and debt as their exclusive hedging vehicle.
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Barrie O. Pettman and Richard Dobbins
This issue is a selected bibliography covering the subject of leadership.
Abstract
This issue is a selected bibliography covering the subject of leadership.
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