Finance practitioners and academics are, or should
be, interested in the following questions:
.Why do investors like dividends?
.Why do investors hate to realize losses?
.Why do investors prefer stocks of "good"
.How are expected returns determined?
.What kjnds of securities do investors like?
.What are the forces that shape financial regulations?
Bài giảng Management theory and practice Financial: Chapter 13 được trình bày cụ thể với các vấn đề: Distribution level and firm value; Theories of investor preferences; Stock dividends and stock splits; Dividend reinvestment plans;... Mời các bạn cùng tìm hiểu và tham khảo nội dung thông tin tài liệu.
While almost any type of security can be used in a repo, funds prefer
to have U.S. Treasury or other government obligations as the collateral for
most of their transactions. For added security, the collateral must equal at
least 102 percent of the loan amount.
The transaction is called a repurchase agreement because the securities
are actually sold to the lender or investor at the beginning of the period of the
loan; the borrower agrees to repurchase the securities at the end of the loan
term, usually at the same price.
CHAPTER 14 Distributions to shareholders:
Dividends and share repurchases
Theories of investor preferences Signaling effects Residual model Dividend reinvestment plans Stock dividends and stock splits Stock repurchases
What is dividend policy?
The decision to pay out earnings versus retaining and reinvesting them.
However, there are a number
of advantages to examining the smart money effect in fund management using
our U.K.mutual fund data. First, ourmoney f low data aremonthly rather than
quarterly. Second, we observe exact f lows rather than approximations based on
fund values and fund returns. Third, we can distinguish between institutional
and individualmoney f lows. Fourth, we can distinguish between purchases and
A further advantage is that we are able to examine mutual fund investor
behavior in a different institutional setting from that of the United States.
In the developed capital market, AMCs offer wider varieties of fund objectives and policies
responding to investor risk preferences. Specialized equity funds focus on narrow industry segments
dominate U.S. asset management industry (Bogle (2005)). Management fees of equity funds can be
viewed as the indicator of security selection and portfolio management skills of fund managers. Nazir
and Nawaz (2010) documented that higher management fees lead to higher total fund returns reflecting
in higher risk adjusted return or Sharpe’s ratio. ...
Even if socially responsible investment does not impose a cost on SRI fund investors in terms of
reduced before-fee financial performance, these investors could still pay an explicit price for
their funds' social responsibility in the form of higher fees. Indeed, there are reasons to expect
fees charged by SRI funds to be higher. First, some SRI funds actively engage with the firms in
which they invest to encourage them to pursue socially responsible policies. The costs of such
active monitoring may be partly passed on to investors in the form of higher expenses.
The second difference has to do with the tax treatment of capital gains. In
the United Kingdom, the system is simple: Investors only pay capital gains tax
when they sell their shares in a fund. In the United States, however, investors
face an additional form of capital gains tax. U.S. mutual funds must distribute
net capital gains realized by the fund, and when they do so, their investors
are liable for tax on these distributions.
There are many popular investment books, but relatively few provide
a dispassionate introduction to the controversies that surround the
management of wealth. Even though there are plenty of important articles
that take these controversies forward, few of the investment guides pull
the different sides of the arguments together in one place. That is what
this book seeks to do, in a way which is intended to be of practical use.
In the implementation of our strategy we focus on
the following ESG factors:
Environmental: For us this means that we focus
on climate change. We believe that climate change
issues are very important and that climate change
(related) policy will lead to more focus on, for
instance, energy efficiency and urban regeneration
and that it will lead to shifting tenant and investor
Social: For us this means that we focus on human
rights and work conditions.
heir indicators of low female autonomy include relatively
large age differences between husbands and wives, relatively greater breaks between a woman’s natal
and affinal homes on marriage, and relatively large gender gaps in educational indicators, as well as
strong indicators of son preference.
Much other research confirms their general conclusions.
Further, in Canada, asset default factors for preferred shares, where rated, are based on the
rating agency grade. For financial leases where rated, and the lease is also secured by the
general credit of the lessee, the asset default factor is based on the rating agency grade.
Consider my parents. My mother did not know any geomorphology or
landscape ecology. Yet she enjoyed her familiar, Southern US rural land-
scapes. My father enjoyed the fertility of the soils in the Shenandoah Valley
in Virginia; he admired a good field. On visits around, he would take a spade
and turn the soil to see whether it might make a good garden. He always
knew what watershed he was in, what crops were growing where. He loved
a good rain. Both enjoyed the changing seasons, the dogwood and redbud in
the hills in the spring, the brilliant and subtle colours...
Acres of Diamonds have been spread all over the United States, time and care have made them more valuable, and now that they have been reset in black and white by their discoverer, they are to be laid in the hands of a multitude for their enrichment. In the same case with these gems there is a fascinating story of the Master Jeweler’s life-work which splendidly illustrates the ultimate unit of power by showing what one man can do in one day and what one life is worth to the world.
Should you invest in a penthouse or in a studio? A three-story colonial or a two-bedroom ranch?
The first time out, it’s probably best to invest in something on the small side. Unless you’re buying
a move-in condition property and have a reliable tenant waiting in the wings, there’ll probably be
a period of time before your investment starts generating income. During that period, you’ll have
to make loan payments on the investment property from your regular income.
But uncertainty about the path of future interest rates (and differences in investor
preferences) will make debt of different maturities imperfect substitutes. Because of this,
changes in the mix of short-term and long-term bonds offered by the government will change
relative prices and thus influence the shape of the yield curve. At the same time, monetary
policy based on setting the policy rate becomes less effective: the lower the degree of asset
substitutability, the weaker the transmission of changes in the overnight rate to other interest
A similarly complex picture emerges from Liu’s (2008) phenomenological study of the
interaction experiences of five students enrolled in distance education courses. Liu
found that the level of interaction between students was affected by five interrelated
factors: students’ learning styles and preferences; the instructor’s teaching style and
course design; students’ perception of the nature of distance education courses; the
course subject matter and level of difficulty; and the way students managed their time
Conwell Acres of Diamonds have been spread all over the
United States, time and care have made them more valuable, and now that they
have been reset in black and white by their discoverer, they are to be laid in the
hands of a multitude for their enrichment.
In the same case with these gems there is a fascinating story of the Master Jeweler’s
life-work which splendidly illustrates the ultimate unit of power by showing
what one man can do in one day and what one life is worth to the world.
Prior to the 1980s, most preferred stocks were issued by regulated utility
companies. From 1950 to 1979, 90 of the 108 preferred stock offerings were made by
utilities. In the mid-1980s, financial firms began to issue preferred stocks, but the
explosive growth in preferred stock issued by financial firms did not occur until after
the Federal Reserve’s 1996 ruling on Tier 1 capital. Financial institutions became the
dominant issuers of preferred stocks by the late 1990s. While non-financial firms in
aggregate have been issuing a steady 30 to 60 new preferred stocks a...
Until July 2007, the S&P Preferred Stock Index was characterized by relative
stability. Firm values of financial institutions were high and preferred stocks had
returns which were similar to bonds. Beginning in the summer of 2007, the volatility
of returns in the common stocks of financial firms increased significantly. The S&P
Financial Sector Index approximately doubled in volatility in August 2007. After
August 2007, the Preferred Stock Index became more correlated with the S&P 500 and
the S&P Financial Index and less correlated with...