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Article
Publication date: 21 September 2018

Ghaith El-Nader

The purpose of this paper is to investigate the interactions between free float and stock liquidity in the UK stock market over the period 2002–2016.

Abstract

Purpose

The purpose of this paper is to investigate the interactions between free float and stock liquidity in the UK stock market over the period 2002–2016.

Design/methodology/approach

This paper is conducted using cross-sectional data regression analysis. The sample consists of 15,650 firm-level observations from the UK stock market.

Findings

The findings suggest that stocks with higher levels of free float are associated with higher levels of liquidity. This relation is significant regardless of the liquidity measure used, and is evident even after controlling for firm characteristics.

Originality/value

This paper contributes to the existing literature by presenting further evidence on the significance of free float in capital markets and its effect on stock liquidity, particularly for UK firms as the minimum free float requirements as announced by the FTSE group in 2011 increased from 15 to 25 percent.

Details

Managerial Finance, vol. 44 no. 10
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 23 March 2021

Daniel Dupuis, Virginia Bodolica and Martin Spraggon

Volume-based liquidity ratios suffer from potential measurement bias due to share restriction and may misrepresent actual liquidity. To address this issue, the authors develop two…

Abstract

Purpose

Volume-based liquidity ratios suffer from potential measurement bias due to share restriction and may misrepresent actual liquidity. To address this issue, the authors develop two modified metrics, the free-float liquidity and the alternative free-float illiquidity ratios. These measures are well suited to estimate liquidity in the presence of trading constraints, as can be found in closely held/state-owned entities, IPOs/SEOs with lockup restrictions, dual-class share structures and family-owned businesses.

Design/methodology/approach

The authors modify the turnover illiquidity ratio, where the number of outstanding shares is scaled by the public free float, and use natural log transformation to normalize free-float liquidity. Our dataset is composed of daily observations for US stocks included in the S&P 500 index over the 2015–2018 period. To test the validity of free-float (il)liquidity ratios, the authors perform a correlation analysis for various liquidity metrics. To examine their empirical efficiency, the authors employ pooled OLS regression models for family firms as a subsample of liquidity-constrained entities, relying on five different identifiers of family-owned businesses.

Findings

The authors’ empirical testing indicates that the proposed free-float (il)liquidity ratios compare favorably with other volume-based methods, such as Amihud's ratio, liquidity ratio and turnover ratio. For the subsample of family organizations as a restricted-share setting, the authors report significant coefficients for our free-float measures across all the family firm identifiers used. In particular, as free-float decreases with progressive family influence, the advanced ratios capture an increase (decrease) in perceived liquidity (illiquidity) that is absent in the other benchmarks.

Originality/value

This study allows the authors to inform the ongoing debate on the management and governance of publicly listed companies with various impediments to trade. Traditional measures understate illiquidity (overstate liquidity) as the fraction of free trading shares is limited by design or circumstances. The authors’ proposed free-float metrics offer informational gains for family leaders to aid in their financing decisions and for non-family outsiders to guide their investment choice. As a constrained free float inhibits price discovery processes, the authors discuss how restricted stock issuers may alleviate the attendant negative effects on governance and information opacity.

Article
Publication date: 17 May 2022

Massicilia Dahmani, Abdelghani Seghir, Nabil Issaadi and Ouali Amiri

This study aims to propose a numerical modeling procedure for response analysis of elastic body floating in water and submitted to regular waves. An equivalent simplified…

Abstract

Purpose

This study aims to propose a numerical modeling procedure for response analysis of elastic body floating in water and submitted to regular waves. An equivalent simplified mechanical single-degree-of-freedom system allowing to reproduce the heave movements is first developed, then the obtained lumped characteristics are used for elastic analysis of the floating body in heave motion.

Design/methodology/approach

First, a two-dimensional numerical model of a rigid floating body in a wave tank is implemented under DualSPHysics, an open source computational fluid dynamics (CFD) code based on smoothed particle hydrodynamics method. Then, the obtained results are exploited to derive an equivalent mechanical mass-spring-damper model. Finally, estimated equivalent characteristics are used in a structural finite element modeling of the considered body assuming elastic behavior.

Findings

Obtained results concerning the floating body displacements are represented and validated using existing experimental data in the literature. Wave forces acting on the body are also evaluated. It was found that for regular waves, it is possible to replace the complex CFD refined model by an equivalent simplified mechanical system which makes easy the use of structural finite element analysis.

Originality/value

The originality of this work lies in the proposed procedure to evaluate the mechanical properties of the equivalent elastic system. This allows to couple two different software tools and to take advantages of their features.

Details

World Journal of Engineering, vol. 20 no. 5
Type: Research Article
ISSN: 1708-5284

Keywords

Article
Publication date: 22 May 2023

Elhassan Kotb Abdelrahman Radwan, Nada Omar Hassan Ali and Mostafa Kayed Abdelazeem Mohamed

This study aims to explore the status and drivers (including free-floated shares, board size, rule duality and board independence) of corporate risk disclosure (CRD) for the…

Abstract

Purpose

This study aims to explore the status and drivers (including free-floated shares, board size, rule duality and board independence) of corporate risk disclosure (CRD) for the conventional listed banks in the Egyptian stock market from 2010 to 2021, which include the country’s major political upheavals and the COVID-19 pandemic.

Design/methodology/approach

This study based on a sample of 117 annual reports of sampled banks from 2010 to 2021. RD index of Al-Maghzom (2016) was developed and adopted to quantify CRD using an unweighted scoring system. The multiple linear regression model was used to validate the hypotheses.

Findings

The analysis shows that the COVID-19 pandemic increased insignificantly disclosure of all risks except for segment risks. In addition, findings reveal that all sampled banks adhere highly to the requirements of mandatory RD, with a low level of adherence to voluntary RD. Moreover, the analysis concluded that the board size and free-floating shares positively affect the disclosure of financial, operational, general information.

Research limitations/implications

The study’s limitations include the content analysis methodology, reliance on annual reports, emphasis on financial and non-financial risks, focus on listed conventional banks in Egypt.

Practical implications

Current study’s findings are more likely to be useful for many parties. It informs investors about the characteristics of the boards’ directors of Egyptian listed banks that disclosed risk information. Banks should disclose more comprehensive risk information. For academics, the current study’s limitations can be considered in their future research.

Originality/value

This work fills a new research area in which there is relatively little research in emerging financial markets that adds new evidence to the relationship between RD and both free-floating shares and board characteristics, particularly in Egypt.

Details

Journal of Financial Reporting and Accounting, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 3 April 2017

Sameh Monir El-Sayegh and Rana Al-Haj

The purpose of this paper is to propose a new framework for time–cost trade-off. The new framework provides the optimum time–cost value taking into account the float loss impact.

Abstract

Purpose

The purpose of this paper is to propose a new framework for time–cost trade-off. The new framework provides the optimum time–cost value taking into account the float loss impact.

Design/methodology/approach

The stochastic framework uses Monte Carlo Simulation to calculate the effect of float loss on risk. This is later translated into an added cost to the trade-off problem. Five examples, from literature, are solved using the proposed framework to test the applicability of the developed framework.

Findings

The results confirmed the research hypothesis that the new optimum solution will be at a higher duration and cost but at a lower risk compared to traditional methods. The probabilities of finishing the project on time using the developed framework in all five cases were better than those using the classical deterministic optimization technique.

Originality/value

The objective of time–cost trade-off is to determine the optimum project duration corresponding to the minimum total cost. Time–cost trade-off techniques result in reducing the available float for noncritical activities and thus increasing the schedule risks. Existing deterministic optimization technique does not consider the impact of the float loss within the noncritical activities when the project duration is being crashed. The new framework allows project managers to exercise new trade-offs between time, cost and risk which will ultimately improve the chances of achieving project objectives.

Details

Journal of Financial Management of Property and Construction, vol. 22 no. 1
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 1 December 1996

Homayoun Khamooshi

Discusses the twofold purpose of this study, first to introduce a number of measures devised to be used in comparing and evaluating two schedules for the same project, second to…

3655

Abstract

Discusses the twofold purpose of this study, first to introduce a number of measures devised to be used in comparing and evaluating two schedules for the same project, second to present and evaluate a heuristic procedure developed in this research for solving the resource constrained project scheduling problem. Posits that the new procedure is based on the notion that a project can be partitioned into a number of sections and there is no obligation to use a single policy all the way through all the sections of project. Shows that this research is also an attempt to bridge the gap between the theory and practice by eliminating the question of which priority rule to use for which project. Develops a new model showing that selecting from a number of priority rules is not required and, using the measures of performance introduced, decides on a suitable schedule from the schedules produced under varied assumptions is shown to be much easier. Concludes with suggestions for further research.

Details

Industrial Management & Data Systems, vol. 96 no. 8
Type: Research Article
ISSN: 0263-5577

Keywords

Open Access
Article
Publication date: 17 July 2023

Maha A. Alrawi

Many problems occur when assigning tasks to work centres, especially in determining the required number of workstations for line balancing which requires a minimum theoretical…

Abstract

Many problems occur when assigning tasks to work centres, especially in determining the required number of workstations for line balancing which requires a minimum theoretical number of workstations. The most common problem is bottleneck. In this paper, a method is proposed to solve floating tasks problem in single-model line when the actual required number of workstations exceeds the minimum theoretical number, and the standard time of the floating task (work center) exceeds the cycle time. The floating task will represent a critical bottleneck activity in line. The proposed method depends on minimizing the standard time of critical bottleneck and non-critical activities by a minimum free-floating time depends on the average of slack times of the non-critical activities, and it will increase the line efficiency from (77%) to (88%), and balance delay is minimized from (23%) to (12%).

Details

Emerald Open Research, vol. 1 no. 4
Type: Research Article
ISSN: 2631-3952

Keywords

Abstract

Details

Central Bank Policy: Theory and Practice
Type: Book
ISBN: 978-1-78973-751-6

Article
Publication date: 16 June 2022

Maysa Ali Mohamed Abdallah and Nayera Adeldayem Eltamboly

This study aims to identify the main factors that drive the differences in the levels of forward-looking information disclosure (FLID) across four countries. This study goes…

Abstract

Purpose

This study aims to identify the main factors that drive the differences in the levels of forward-looking information disclosure (FLID) across four countries. This study goes beyond the firm-specific characteristics to the countries-specific factors to explain the observable differences in the level of FLID among the UK, Italian, Hong Kong and Chinese American Depositary Receipts (ADRs) firms trading in US Exchanges.

Design/methodology/approach

To validate the levels of FLID, corporate financial information environment (CFIE)-final reports structure extractor (FRSE) was conducted on the annual reports of a sample of 353 listed firm observations in 2020 across four different countries. Also, the ordinary least square regression model was used to examine the proposed relationships.

Findings

The empirical results indicate that the level of FLID is highest among the Chinese ADRs firms trading in US Exchanges and UK listed firms. Also, ownership concentration and gender diversity have a positive correlation with the level of FLID. Additionally, long-term orientation positively influences the level of FLID. Considering the moderation effect of power distance and masculinity dimensions, countries with larger power distance tend to have a lower impact of ownership concentration on the level of FLID, whereas countries with higher masculinity tend to have a lesser positive relationship between gender diversity and the level of FLID.

Originality/value

Notwithstanding, this study provides novel and persuasive evidence regarding the effects of firm- and country-specific characteristics as possible determinants of forward-looking disclosures, drawing on evidence from international companies with free floats, boards with female quotas and cultural values including masculinity and long-term orientation. This work offers unique insights from the upper echelons lens, which implies that firms need to obtain a critical mass of gender diversity to achieve a more balanced forward-looking perspective on their annual reports.

Details

Managerial Auditing Journal, vol. 37 no. 6
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 4 May 2012

Khaled Samaha, Khaled Dahawy, Ahmed Abdel‐Meguid and Sara Abdallah

The purpose of this study is to examine the impact of corporate governance attributes of listed Egyptian companies on the propensity (adoption) and comprehensiveness (quality) of…

1092

Abstract

Purpose

The purpose of this study is to examine the impact of corporate governance attributes of listed Egyptian companies on the propensity (adoption) and comprehensiveness (quality) of corporate internet reporting (CIR) practices.

Design/methodology/approach

This study uses archival data from the largest (top) 100 listed companies on the Egyptian Stock Exchange (EGX 100). Corporate governance attributes are captured by ownership structure (free float, managerial ownership, government ownership) and board of directors' structure (board size, board independence, CEO‐chair duality). Empirical models are used to estimate the effects of these attributes on the propensity, content, presentation, and overall comprehensiveness of CIR.

Findings

The results of this study indicate mixed effects of governance attributes on the choice to adopt CIR and its quality. The results from the Binary Logistic Regression suggest that Egyptian companies with greater (less) ownership dispersion, managerial ownership, governmental ownership, and (board independence) are more likely to adopt CIR. On the other hand – and as revealed by the seemingly unrelated regressions – among CIR companies those with greater (less) ownership dispersion, board size (governmental ownership), and (board independence) have more comprehensive CIR.

Originality/value

This study extends the relatively limited research on the effects of corporate governance and CIR in emerging markets. The study contributes to this literature by demonstrating how corporate governance attributes affects the choice to adopt CIR disclosure practices and the level of its quality in an emerging market such as Egypt.

Details

International Journal of Accounting & Information Management, vol. 20 no. 2
Type: Research Article
ISSN: 1834-7649

Keywords

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