Matching Items (2)
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- All Subjects: executive incentive and restraint mechanism
- All Subjects: Private placement
- Creators: Li, Feng
Description
In accordance with the Principal Agent Theory, Property Right Theory, Incentive Theory, and Human Capital Theory, firms face agency problems due to “separation of ownership and management”, which call for effective corporate governance. Ownership structure is a core element of the corporate governance. The differences in ownership structures thus may result in differential incentives in governance through the selection of senior management and in the design of senior management compensation system. This thesis investigates four firms with four different types of ownership structures: a public listed firm with the controlling interest by the state, a public listed firm with a non-state-owned controlling interest, a public listed firm a family-owned controlling interest, and a Sino-foreign joint venture firm. By using a case study approach, I focus on two dimensions of ownership structure characteristics – ownership diversification and differences in property rights so as to document whether there are systematic differences in governance participation and executive compensation design. Specifically, I focused on whether such differences are reflected in management selection (which is linked to adverse selection and moral hazard problems) and in compensation design (the choices of performance measurements, performance pay, and in stock option or restricted stock). The results are consistent with my expectation – the nature of ownership structure does affect senior management compensation design. Policy implications are discussed accordingly.
ContributorsGao, Shenghua (Author) / Pei, Ker-Wei (Thesis advisor) / Li, Feng (Committee member) / Shen, Wei (Committee member) / Arizona State University (Publisher)
Created2015
Description
This paper quantitatively analyses the relation between the return of private
seasoned equity offerings and variables of market and firm characteristics in China Ashare
market. A multiple-factor linear regression model is constructed to estimate this
relation and the result canhelp investors to determine the future return of private
placement stocks.
In this paper, I first review past theories about private placement stocks, including how
the large shareholder participation, the discount of private offerings, the firm
characteristics, and the investment on firm value will affect the return of private
offerings.
According to the past literature, I propose four main factors that may affect the
return of private placement. They are the large shareholders participation in private
placement; the discount that private placement could offer; the characteristics of the
companies that offer a private placement and the intrinsic value of such companies. I
adopt statistic and correlational analysis to test the impact of each factor. Then,
according to this single-factor analysis, I set up a multiple-factor linear regression model
on private seasoned equity offerings return in Chapter Four.
In the last two chapters, I apply this quantitative model to other fields. I use this
model to testify current financial products of private placement and develop investmen
strategies on stocks with private seasoned equity offerings in secondary market. My
quantitative strategy is useful according to the result of setback test.
seasoned equity offerings and variables of market and firm characteristics in China Ashare
market. A multiple-factor linear regression model is constructed to estimate this
relation and the result canhelp investors to determine the future return of private
placement stocks.
In this paper, I first review past theories about private placement stocks, including how
the large shareholder participation, the discount of private offerings, the firm
characteristics, and the investment on firm value will affect the return of private
offerings.
According to the past literature, I propose four main factors that may affect the
return of private placement. They are the large shareholders participation in private
placement; the discount that private placement could offer; the characteristics of the
companies that offer a private placement and the intrinsic value of such companies. I
adopt statistic and correlational analysis to test the impact of each factor. Then,
according to this single-factor analysis, I set up a multiple-factor linear regression model
on private seasoned equity offerings return in Chapter Four.
In the last two chapters, I apply this quantitative model to other fields. I use this
model to testify current financial products of private placement and develop investmen
strategies on stocks with private seasoned equity offerings in secondary market. My
quantitative strategy is useful according to the result of setback test.
ContributorsCao, Xuan (Author) / Pei, Ker-Wei (Thesis advisor) / Li, Feng (Thesis advisor) / Qian, Jun (Committee member) / Arizona State University (Publisher)
Created2017