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Book part
Publication date: 19 April 2011

Etienne Redor

In a world of asymmetric information between managers and investors, the choice of the payment method is a key issue in mergers and acquisitions. Previous literature shows…

Abstract

In a world of asymmetric information between managers and investors, the choice of the payment method is a key issue in mergers and acquisitions. Previous literature shows that contingent methods of payment other than stocks (e.g. contingent value rights, earnouts or convertible securities), even if they do not solve the information asymmetry problems, can mitigate their consequences. In this chapter, I examine the motivations and the effects of the inclusion of a contingent payment method the use of which has not been studied yet, the warrant. I show that this consideration is used mainly when information asymmetry problems are severe and that it can be used to solve the information problems.

Article
Publication date: 11 March 2022

Inkyung Choi

The purpose of this paper is to discuss deployment of cultural warrant in intercultural environment, aiming to better achieve ethical warrant.

Abstract

Purpose

The purpose of this paper is to discuss deployment of cultural warrant in intercultural environment, aiming to better achieve ethical warrant.

Design/methodology/approach

This paper synthesizes research on cultural warrant and classification, and uses examples of the Dewey Decimal Classification (DDC) to illustrate cultural warrant in a case of cross-cultural adaptation of bibliographic classification.

Findings

The notion of intercultural warrant was suggested as an operational approach to cultural warrant in the context of intercultural use of Knowledge Organization System (KOS).

Research limitations/implications

The research focuses on discussions of cultural warrant in the context of intercultural uses of KOS but lacking diverse examples of KOS and beyond (such as descriptive metadata standards).

Originality/value

This paper suggests the development of intercultural warrant as a theoretical view to understand classification systems commonly used worldwide and a path to achieve ethical treatments of cultures in such systems.

Details

Journal of Documentation, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0022-0418

Keywords

Article
Publication date: 10 July 2017

Daniel Martínez-Ávila and John M. Budd

The purpose of this paper is to update and review the concept of warrant in Library and Information Science (LIS) and to introduce the concept of epistemic warrant from…

1077

Abstract

Purpose

The purpose of this paper is to update and review the concept of warrant in Library and Information Science (LIS) and to introduce the concept of epistemic warrant from philosophy. Epistemic warrant can be used to assess the content of a work; and therefore, it can be a complement to existing warrants, such as literary warrant, in the development of controlled vocabularies. In this proposal, the authors aim to activate a theoretical discussion on warrant in order to revise and improve the validity of the concept of warrant from the user and classifier context to the classificationist context.

Design/methodology/approach

The authors have conducted an extensive literary review and close reading of the concept of warrant in LIS and knowledge organization in order to detect the different stances and gaps in which the concept of epistemic warrant might apply. The authors adopted an epistemological approach, in the vein of some of the previous commenters on warrant, such as Hope Olson and Birger Hjørland, and built upon the theoretical framework of different authors working with the concept of warrant outside knowledge organization, such as Alvin Plantinga and Alvin Goldman.

Findings

There are some authors and critics in the literature that have voiced for a more epistemological approach to warrant (in opposition to a predominantly ontological approach). In this sense, epistemic warrant would be an epistemological warrant and also a step forward toward pragmatism in a prominently empiricist context such as the justification of the inclusion of terms in a controlled vocabulary. Epistemic warrant can be used to complement literary warrant in the development of controlled vocabularies as well as in the classification of works.

Originality/value

This paper presents an exhaustive update and revision of the concept of warrant, analyzing, systematizing, and reviewing the different warrants discussed in the LIS literary warrant in a critical way. The concept of epistemic warrant for categorizational activities is introduced to the LIS field for the first time. This paper, and the proposal of epistemic warrant, has the potential to contribute to the theoretical and practical discussions on the development of controlled vocabularies and assessment of the content of works.

Details

Journal of Documentation, vol. 73 no. 4
Type: Research Article
ISSN: 0022-0418

Keywords

Article
Publication date: 17 August 2015

Andrea Schertler and Saskia Stoerch

The purpose of this paper is to investigate whether factor sensitivities of margins of bank-issued warrants depend on issuers’ credit risk during the period of economic…

Abstract

Purpose

The purpose of this paper is to investigate whether factor sensitivities of margins of bank-issued warrants depend on issuers’ credit risk during the period of economic turmoil between January 2008 and June 2010.

Design/methodology/approach

Therefore, first, Fama–MacBeth estimations were applied and it was demonstrate that the sensitivities of margins in terms of time to maturity and moneyness vary substantially over time; the average outcomes are similar to the results of classical pooled estimations.

Findings

Then, time-series tests were used and it was found that the steepness of the issuers’ credit default swap (CDS) spread curves correlates negatively with the time-to-maturity sensitivities as well as with the explanatory power of Fama–MacBeth estimations.

Research limitations/implications

These findings indicate that the life-cycle hypothesis is weakened when the issuers’ CDS spread curves become steeper.

Originality/value

Thus, this study offers a new approach to gain insights into the role of issuers’ credit risk on price setting behavior.

Details

The Journal of Risk Finance, vol. 16 no. 4
Type: Research Article
ISSN: 1526-5943

Keywords

Article
Publication date: 8 March 2013

Paul Brockman and Brett C. Olsen

Firms issuing equity securities for capital must recognize that this issuance may alter the ownership concentration of the firm. Through this change in ownership…

2268

Abstract

Purpose

Firms issuing equity securities for capital must recognize that this issuance may alter the ownership concentration of the firm. Through this change in ownership structure, the market liquidity of the firm's stock may also change, which has implications for the cost of equity capital and firm value. This paper aims to examine a specific security, the common stock purchase warrant, within this context. It also aims to posit that the decision to issue warrants has important implications for the firm's subsequent ownership structure and market liquidity.

Design/methodology/approach

The paper's unique dataset of warrant‐issuing firms tracks the warrants from their issue through to their exercise. Based on the study of SEOs by Kothare, the ownership concentration and market liquidity of the underlying stock prior to and following warrant exercises are measured. The paper examines the causal relations between warrant exercises and ownership changes, and between ownership changes and market liquidity.

Findings

The paper shows that firms experience a statistically and economically significant decrease in ownership concentration following warrant exercises. Examining the liquidity effects of this change in ownership, it shows that market liquidity increases significantly after the exercise of warrants, consistent with the literature. The decrease in concentration following warrant exercises is experienced exclusively by firm insiders. The paper also finds that outsiders increase their holdings in firms with a high concentration of inside holdings and in firms with a low concentration of outside holdings prior to warrant exercises; that is, they use warrant offerings to increase their influence in the firm.

Originality/value

This study is the first to the authors' knowledge that investigates warrants through their entire life span, and the first to examine the effects of warrant exercises on the performance and market liquidity of the firm. The results contribute to securities issuance, ownership, and liquidity literatures.

Details

Managerial Finance, vol. 39 no. 4
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 1 January 1987

William R. Folks and Michael G. Ferri

Although the Eurobond market has been reasonably welldeveloped for almost two decades, only recently has there been a proliferation of equity‐linked Eurobonds, as issuers…

Abstract

Although the Eurobond market has been reasonably welldeveloped for almost two decades, only recently has there been a proliferation of equity‐linked Eurobonds, as issuers have attempted to respond to historically high Eurobond interest rates and the opportunities to reduce the nominal yield of issues by providing for conversion of the bond or by attaching warrants for purchase of the stock of the issuer. From 1979 to 1983, some twenty‐three corporate issuers have attached warrants for stock purchase to Eurobond issues which were denominated in a currency different from that of the jurisdictional headquarters of the parent; twenty‐one issues were denominated in dollars, one (Jusco) in German marks, and one (Schering AG) in sterling. By nationality, nine issues were made by German firms, all of which are industrial leaders or major banks; seven issuers were Japanese; three, British; two, Swiss (both banks); and two Canadian (both Seagrams Co.).

Details

Managerial Finance, vol. 13 no. 1
Type: Research Article
ISSN: 0307-4358

Article
Publication date: 6 July 2012

John S. Howe and Biljana Nikolic

The purpose of this paper is to assess whether the decision to issue warrants in an initial public offering (IPO) is subject to catering influences.

Abstract

Purpose

The purpose of this paper is to assess whether the decision to issue warrants in an initial public offering (IPO) is subject to catering influences.

Design/methodology/approach

The approach used was to measure the market “warrant premium” and assess whether it relates to the probability of firms including warrants in their IPOs.

Findings

The evidence is strongly supportive of a catering influence on the firm's decision to include warrants in its IPO.

Practical implications

Sentiment is a factor in the selection of what securities a firm sells at its IPO. The findings lend further credence to the pervasiveness of catering.

Originality/value

No prior study has examined the role that catering plays in the selection of types of securities to sell.

Details

Review of Behavioural Finance, vol. 4 no. 1
Type: Research Article
ISSN: 1940-5979

Keywords

Article
Publication date: 9 October 2019

Brian Dobreski

Within standards for bibliographic description, common usage has served as a prominent design principle, guiding the choice and form of certain names and titles. In…

Abstract

Purpose

Within standards for bibliographic description, common usage has served as a prominent design principle, guiding the choice and form of certain names and titles. In practice, however, the determination of common usage is difficult and lends itself to varying interpretations. The purpose of this paper is to explore the presence and role of common usage in bibliographic description through an examination of previously unexplored connections between common usage and the concept of warrant.

Design/methodology/approach

A brief historical review of the concept of common usage was conducted, followed by a case study of the current bibliographic standard Resource Description and Access (RDA) employing qualitative content analysis to examine the appearances, delineations and functions of common usage. Findings were then compared to the existing literature on warrant in knowledge organization.

Findings

Multiple interpretations of common usage coexist within RDA and its predecessors, and the current prioritization of these interpretations tends to render user perspectives secondary to those of creators, scholars and publishers. These varying common usages and their overall reliance on concrete sources of evidence reveal a mixture of underlying warrants, with literary warrant playing a more prominent role in comparison to the also present scientific/philosophical, use and autonomous warrants.

Originality/value

This paper offers new understanding of the concept of common usage, and adds to the body of work examining warrant in knowledge organization practices beyond classification. It sheds light on the design of the influential standard RDA while revealing the implications of naming and labeling in widely shared bibliographic data.

Details

Journal of Documentation, vol. 76 no. 1
Type: Research Article
ISSN: 0022-0418

Keywords

Article
Publication date: 9 January 2017

Julia Bullard

The purpose of this paper is to examine the role of warrant in daily classification design in general and in negotiating disparate classification goals in particular.

Abstract

Purpose

The purpose of this paper is to examine the role of warrant in daily classification design in general and in negotiating disparate classification goals in particular.

Design/methodology/approach

This paper synthesizes classification research on forms of warrant and uses examples of classification decisions from ethnographic engagement with designers to illustrate how forms of warrant interact in daily classification decisions.

Findings

Different forms of warrant, though associated with incompatible theories of classification design, coexist in daily classification decisions. A secondary warrant might be employed to augment the primary warrant of a system, such as to decide among equally valid terms, or to overturn a decision based on the primary warrant, such as when ethical impacts are prioritized above user preference.

Research limitations/implications

This paper calls for empirical research using the application of warrant as an object of analysis.

Originality/value

The paper connects a ubiquitous and observable element of classification design – the application of warrant – to longstanding divisions in classification theory. This paper demonstrates how the analysis of daily classification design can illuminate the interaction between disparate philosophies of classification.

Details

Journal of Documentation, vol. 73 no. 1
Type: Research Article
ISSN: 0022-0418

Keywords

Article
Publication date: 11 January 2022

Robert Martin Hull, Sungkyu Kwak and Rosemary Walker

The article aims to explore if stock derivative types (stock options and stock warrants) are associated with stock returns for firms undergoing seasoned equity offerings (SEOs).

Abstract

Purpose

The article aims to explore if stock derivative types (stock options and stock warrants) are associated with stock returns for firms undergoing seasoned equity offerings (SEOs).

Design/methodology/approach

The authors regress stock returns against stock derivatives for periods around SEO announcements with standard errors clustered at the month level.

Findings

The authors find that lower stock derivatives holdings for the fiscal year after the SEO are associated with superior pre-SEO returns. This can be explained by owners exercising their derivatives to capitalize on the pre-SEO price run-up. The authors find that greater stock option holdings by insiders for the fiscal year after the SEO are associated with superior post-SEO returns for up to ten years after the SEO announcement. This new finding does not hold for stock warrants.

Research limitations/implications

Stock derivatives are supplied by Capital IQ. Given their description, the authors infer that stock options are owned largely by insiders. Thus, the insider conclusions for stock options depend on this implication.

Practical implications

Stock options and stock warrants can be used strategically to reward stock derivative owners of strong performing firms for past performance. Stock options can be used to motivate insiders (primarily key executives) to achieve superior future performance.

Originality/value

This study is unique in comparing the influence of holdings for stock options and stock warrants on stock price performance around SEOs. The authors show that the sign of the association depends on whether the test includes pre-SEO periods.

Details

International Journal of Managerial Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1743-9132

Keywords

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