Search results

The purpose of this paper is to examine the short‐term and long‐term stock price volatility changes around bonus and rights issue announcements, using historical volatility estimation and time varying volatility approach.

Changes in volatility around bonus and rights issues have been examined using the following methodologies. First, to capture historical volatility, change in standard deviation for 20 days and 100 days before and after announcement have been examined. Second, change in time varying volatility and unconditional volatility is examined using GARCH (1, 1) model.

The results indicate that the historical volatility has increased after bonus and rights issue announcement. The volatility persistence and unconditional variance have increased after the bonus and rights issue announcements. This evidence, extendable to any other type of issue announcement, is consistent with theories stating that volatility increases after the seasoned capital issue announcements.

This study analyses historical volatility, volatility persistence and unconditional volatility around bonus and rights issue announcements, which has not been observed in the previous literature. This study fills the gap in literature by empirically examining the change in short‐ and long‐term volatility before and after bonus and rights issue announcements. Moreover, measuring volatility using GARCH model overcomes the potential problem of heteroscedasticity associated with cross‐sectional data. The change in volatility persistence and unconditional volatility before and after the announcement are also examined. This study is useful for researchers and practitioners specialized in finance, international business and management, and professionals in the area of commercial policy development in emerging markets.

The objective of this paper is to investigate the role of information asymmetry in the equity selling mechanisms chosen by the firms from an important emerging market, India. Specifically, the authors look into the choice between the two most popular mechanisms of equity issues – rights issue and private placement of equity.

This study introduces three analyst specific variables as proxies of information asymmetry as the conventional proxies are fraught with several disadvantages. First, the paper tests the choice between rights issue and private placement using a binary logistic model. In the second approach the authors use rights issue and segregate the private placements into preferential allotments and qualified institutional placements and test the impact of information asymmetry using a multinomial logistic regression.

The outcome of this empirical exercise shows that only those firms facing lesser information problems choose rights issue of equity. Private placements are chosen by firms facing higher information problems to circumvent information costs. The results remain invariant even after segregating the qualified institutional placements from private equity placement as the firms with information disadvantage choose to place equity privately.

In contrast to the conventional studies that focus on the debt-equity framework, the authors argue that the impact of information asymmetry is applicable even at disaggregated levels of equity selling mechanism.

This paper aims to investigate the relation between corporate governance and earnings management around UK rights issues.

The paper examines the effect of board structure, ownership structure, adviser structure, and capital structure on discretionary current accruals – a proxy for earnings management – for a sample of size‐controlled rights issuers. Rights issues are chosen as a context in which firms have particular incentives to manage earnings.

The results suggest that firms with higher debt to equity ratios, with lower proportions of non‐executive directors, or with no large block owner, are more likely to use discretionary current accruals to manipulate earnings around rights issues.

Similar research can be conducted around other equity issuing methods such as open offers and around other major corporate events such as initial public offerings.

The paper's evidence contributes to an understanding of corporate governance and has practical implications for stakeholders. It suggests that investors can rely more on the financial disclosures of firms with lower debt to equity ratios, higher proportions of outside directors, and with a large blockholder. Regulators may propose that firms undertaking corporate events such as equity offerings should follow best corporate governance practices to enhance investor confidence.

This study is the first to investigate the corporate governance mechanisms in place to check opportunistic earnings management around specific corporate events for the UK market.

The purpose of this study is to investigate the impact of artificial intelligence (AI) on the human rights issue. This study has also examined issues with AI for business and its civil and criminal liability. This study has provided inputs to the policymakers and government authorities to overcome different challenges.

This study has analysed different international and Indian laws on human rights issues and the impacts of these laws to protect the human rights of the individual, which could be under threat due to the advancement of AI technology. This study has used descriptive doctrinal legal research methods to examine and understand the insights of existing laws and regulations in India to protect human rights and how these laws could be further developed to protect human rights under the Indian jurisprudence, which is under threat due to rapid advancement of AI-related technology.

The study provides a comprehensive insight on the influence of AI on human rights issues and the existing laws in India. The study also shows different policy initiatives by the Government of India to regulate AI.

The study highlights some of the key policy recommendations helpful to regulate AI. Moreover, this study provides inputs to the regulatory authorities and legal fraternity to draft a much-needed comprehensive policy to regulate AI in the context of the protection of human rights of the citizens.

AI is constantly posing entangled challenges to human rights. There is no comprehensive study, which investigated the emergence of AI and its influence on human rights issues, especially from the Indian legal perspective. So there is a research gap. This study provides a unique insight of the emergence of AI applications and its influence on human rights issues and provides inputs to the policymaker to help them to draft an effective regulation on AI to protect the human rights of Indian citizens. Thus, this study is considered a unique study that adds value towards the overall literature.

The authors compare the post-issue stock and operating performance of rights issue versus public offer firms using Korean data. The authors find that the stock returns of rights issue firms are less negative than those of public offering firms during the three years subsequent to the seasoned equity offering. The authors further find that the profitability of rights offering firms is superior to those of public offering firms and that the ratio of sales to assets for rights issue firms is much higher over the post-issue period. The results substantiate Heinkel and Schwartz’s (1986) and Eckbo and Masulis’ (1992) theoretical models that posit firms with better quality tend to select the rights issue rather than public offer method when issuing seasoned equity.

The purpose of this paper is to better understand how issues may be framed in public debate. The outcomes of this debate affect organizations. The study is based on the seven types of framing identified by Hallahan and scrutinizes which of these types is utilized, and how this is done, in the case of human rights issues.

For this study a secondary analysis of academic papers on human rights issues was conducted. After a literature search, 40 papers originating from 23 different journals were further analyzed. Where the researchers described the framing of human rights issues, the type of framing was identified according to the typology and mode of utilization.

In the case of human rights, all seven framing types were found; however, the most common were the framing of attributes in which the economic or cultural context was emphasized and the framing of situations pointing out power differences between the actors.

The study underlines the complexity of framing and the importance of awareness of framing processes. It shows that the framing typology provides valuable insights into the debate on social issues, inspiring further research.

This study provides a better understanding of the processes of issue framing, an important part of corporate communication strategies.

The study adds to actor and audience awareness of framing.

Insights from framing theory are applied to the debate on social issues, thereby offering a fresh perspective on research in this field and relevant to corporate social responsibility.

In 1978 a postal questionnaire was despatched to 300 private shareholders of two public companies to determine their understanding of rights issues. This paper examines their attitudes towards rights issues using as a basis the perfect market model.

The purpose of this paper is to better understand agenda setting by international human rights organizations in the online environment and at the same time contribute to agenda‐setting theory. The role of non‐governmental organizations (NGOs) in the area of human rights is clarified, and agenda setting and related concepts are discussed.

The study focuses on how attention is drawn to human rights issues in online communication by Human Rights Watch (HRW) and Amnesty International. A content analysis of online forums of HRW and Amnesty International was conducted by monitoring their web sites and Facebook and Twitter pages over a period of three months. In addition, two expert interviews with representatives of Amnesty Finland were conducted to better understand how the organization's online communication activities relate to its policies in drawing attention to human rights.

Based on this study, drawing attention to human rights issues is a goal that leads to active online communication. NGOs aim at attracting attention to their issues online by initiating a dialogue via online forums and motivating the public to participate in activities that may influence the media and the political agenda. The existing agenda‐setting research tends to emphasize the role of journalists in setting the public agenda, and mentions NGOs primarily as a source for journalists and as a political player. The online environment shows, however, that these NGOs mostly aim at setting the public agenda to create social change, while the media and political agenda are also not forgotten.

This study suggests that the interdependence of the media, public and political agendas is more complex than has thus far been considered in agenda‐setting theory, especially in the current online environment. It investigates online agenda setting by two international NGOs, but does not discuss the role of the media or the public at large in their relationship with these NGOs. As this study has a limited time frame, a content analysis over a longer period and interviews with representatives of a wider variety of NGOs could be a next step. Future research could also compare the online communication of NGOs with that of profit organisations.

The findings show how agenda setting is supported by intricate multi‐platform activities in the present‐day online environment by the organizations studied in order to initiate a dialogue on societal issues. This suggests that in the online environment, the media, public and political agendas are becoming increasingly interrelated and within this triangle the public agenda seems to be gaining further in importance.

The impact that NGOs have on today's society is growing, and hence studying their online agenda setting is valuable from the perspective of corporate communication. International NGOs early on recognised the value of online communication.

This study examines short‐term stock price reactions to announcements of equity rights offerings in Singapore between 1983 and 2003 and investigates whether economic factors lead to different price reactions. The results show that the cumulative abnormal returns (CARs) associated with rights issues differ significantly across economic conditions at the time of issuance. Rights issues typically result in significantly large positive CARs during periods of economic growth but small positive but insignificant CARs during economic downturns. The CARs vary positively with Tobin’s q‐ratios, which indicate the availability of positive net present value investment opportunities of the firms issuing the rights. Our major finding is that the price reaction of Singapore firms to equity rights offerings is sensitive to economic conditions at the time of the rights issues.

This paper aims to analyse the causes and impact of the significant mean price discounts (25 per cent for financial and 29 per cent for non-financial firms) in rights issues in the UK using a sample of 268 observations for the period of 1994 to 2012. It is observed that for non-financial companies, the issue terms announcement returns are negatively affected by the discount size, while firm size, growth prospects and good previous stock performance have a positive impact. It is also investigated which factors seem to influence managers to engage in deeper discounts when these are so disliked by investors. Evidence is provided that firms with more leverage, larger bid-ask spreads or suffering losses tend to choose deeper discounts. The authors conclude that managers balance the expected negative reaction of the market to a price discount with the risks of a costly issue failure, with these being higher when the firm experiences losses, has a higher volatility and also when the stock market climate is more adverse.

The analysis is divided in two stages. In a first step (thereafter pre-announcement), the authors evaluate the firm’s and market conditions that determine the price discount. In a second stage (post-announcement), the authors measure the market reaction to the rights issues announcement by calculating the abnormal announcement returns by cumulating the difference between daily returns (R) and expected market returns (ER) for the period of −2 to 2 relative to the announcement day.

The authors document that price discounts in right issues for non-financial and financial firms are determined by a set of firm-characteristics and market sentiment. They also bring evidence that price discounts are not arbitrarily determined by firm managers.

The results are consistent with the idea that despite the negative signal to investors conveyed by a significant price discount in the new shares, managers of non-financial companies still engage in substantially price-cutting.