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on Corporate Finance |
| By: | Arya Pradipta (Trisakti School of Management, Jl. Kyai Tapa No. 20, Jakarta, Indonesia Author-2-Name: Arvivid Gracenia Zalukhu Author-2-Workplace-Name: Trisakti School of Management, Jl. Kyai Tapa No. 20, Jakarta, Indonesia Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | Objective - This paper aims to obtain empirical evidence about the influence of specialized auditors, audit tenure, audit committee, board independence, ownership concentration, and auditor quality on audit report lag in Indonesian manufacturing firms. Methodology/Technique - The population is all manufacturing companies listed on the Indonesia Stock Exchange between 2010 and 2016. Multiple linear regressions was used as the data analysis method. Finding - The results of this research show that specialized auditors, board independence, ownership concentration and auditor quality all have an influence on audit report lag. Meanwhile, audit tenure and audit committee do not have an influence on audit report lag. Novelty - Specialized auditors will provide better performance than non-specialized auditors. Specialized auditors will apply more appropriate planning and monitoring on the audit procedure. Specialized auditors need longer time to audit financial statements, which effects audit report lag. The presence of an independent board requires higher quality financial statements. Thus, the auditor needs to put more effort into the verification process of financial statements. The largest shareholders tend to be committed and responsible to the company's reputation. Managers will demand the audit report lag in a timely manner, in order to maintain the trust and satisfaction of the company's largest shareholders. |
| Keywords: | Audit Report Lag; Specialized Auditor; Board Independence; Ownership Concentration; Auditor Quality. |
| JEL: | G30 M42 |
| Date: | 2020–03–31 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:gjbssr555&r=all |
| By: | Miglo, Anton |
| Abstract: | This paper analyzes a financing problem for an innovative firm that is considering launching a web-based platform. Our model is the first one that analyzes an entrepreneur's choice between initial exchange offering (IEO) and initial coin offering (ICO). Compared to ICO, under IEO the firm is subject to screening by an exchange that reduces the risk of investment in tokens; also the firm gets access to a larger set of potential investors; finally tokens become listed on an exchange faster. We argue that IEO is a better option for the firm if: 1) the investment size is relatively large; 2) the extent of moral hazard problems faced by the firm is relatively large; 3) the degree of investors' impatience is relatively small. We aslo find a non-linear relationship between firm quality and its financing choice. Most of these predictions are new and have not been tested sofar. |
| Keywords: | FinTech; Entrepreneurial Finance; Initial Coin Offering; Initial Exchange Offering; Moral Hazard; Utility Tokens; Listing |
| JEL: | D82 D84 G32 L11 L26 M13 O32 |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:99600&r=all |
| By: | Miglo, Anton |
| Abstract: | This paper offers a model of a firm that raises funds for financing an innovative business project and chooses between ICO (initial coin offering) and equity financing. The model is based on information problems associated with both ICO and equity financing well documented in literature. The model provides several implications that have not yet been tested. For example we find that the message complexity can be benefitial for firms conducting ICOs. Also high-quality projects can use ICO as a signal of quality. Thirdly the average size of projects undertaking equity financing is larger than that of firms conducting ICO. |
| Keywords: | asymmetric information, complex information, initial coin offering (ICO), equity financing, signalling |
| JEL: | D82 G32 L11 L26 M13 M15 O32 |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:99598&r=all |
| By: | Alois Pichler; Ruben Schlotter |
| Abstract: | This paper enhances the pricing of derivatives as well as optimal control problems to a level comprising risk. We employ nested risk measures to quantify risk, investigate the limiting behavior of nested risk measures within the classical models in finance and characterize existence of the risk-averse limit. As a result we demonstrate that the nested limit is unique, irrespective of the initially chosen risk measure. Within the classical models risk aversion gives rise to a stream of risk premiums, comparable to dividend payments. In this context, we connect coherent risk measures with the Sharpe ratio from modern portfolio theory and extract the Z-spread - a widely accepted quantity in economics to hedge risk. By involving the Z-spread we demonstrate that risk-averse problems are conceptually equivalent to the risk-neutral problem. The results for European option pricing are then extended to risk-averse American options, where we study the impact of risk on the price as well as the optimal time to exercise the option. We also extend Merton's optimal consumption problem to the risk-averse setting. |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2004.04397&r=all |
| By: | Indra Arifin Djashan (STIE Trisakti, Jl. Kyai Tapa No. 20, Grogol, 11440, Jakarta, Indonesia Author-2-Name: Yosua Agustinus Author-2-Workplace-Name: STIE Trisakti, Jl. Kyai Tapa No. 20, Grogol, 11440, Jakarta, Indonesia Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | Objective - This study aims to identify the effect of firm size, profitability, audit committee and other factors on firm value.Methodology/Technique - The population in this study are all non-financial companies on the Indonesian Stock Exchange from 2015 to 2017. The research sample of 403 companies was selected using a purposive sampling method with certain criteria so that a total sample of 180 companies was obtained. Data testing techniques using multiple linear regression with a significance level of 5% alpha.Finding - The results show that firm size has a negative effect on firm value while company growth, profitability, liquidity, tangible fixed assets, audit committee and board size all have a significant effect on firm value. Simultaneously, all independent variables have a positive effect on firm value. The coefficient of determination shows that the effect of the independent variable on the dependent variable is 55.9% and the rest is influenced by other factors.Type of Paper - Empirical. |
| Keywords: | Audit Committee; Firm Value; Company Growth; Profitability; Liquidity; Board Size. |
| JEL: | M41 M42 M49 |
| Date: | 2020–03–31 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:afr186&r=all |
| By: | Friska Firnanti (Trisakti School of Management, 11440, Jakarta, Indonesia Author-2-Name: Arwina Karmudiandri Author-2-Workplace-Name: Trisakti School of Management, 11440, Jakarta, Indonesia Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | Objective - the timeliness of financial statement submission becomes important in decision making. With the growing importance of timely financial statements for the relevance of decision making, an understanding of the determinants of audit report lag becomes necessary. This research intends to obtain empirical evidence that corporate governance through board and audit committee characteristics, specifically size, meetings, independence and expertise has an influence on audit report lag. Financial ratios through firm size, profitability and leverage are tested to determine their influence on audit report lag. Methodology/Technique - Hypothesis tests with multiple regression are used with non-financial firms listed on the Indonesian Stock Exchange between 2015 to 2017. This research uses purposive sampling with the result of 204 companies sampled and 612 data sets used in the model.Finding - The result of this research show that board size, board meetings, board independence, audit committee size, firm size and profitability all have an influence on audit report lag. Meanwhile, audit committee independence, audit committee expertise, and leverage have no influence on audit report lag.Type of Paper - Empirical. |
| Keywords: | Board Characteristics; Audit Committee; Financial Ratio; Audit Report Lag. |
| JEL: | M40 M41 M49 |
| Date: | 2020–03–30 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:afr185&r=all |
| By: | Ayoubi, Charles (EPFL - Ecole Polytechnique Federale de Lausanne); Barbosu, Sandra (barbosu@sloan.org); Pezzoni, Michele (Université Côte d’Azur/CNRS/GREDEG, Nice, OST-HCERES, Paris, and ICRIOS, Bocconi University, Milan); Visentin, Fabiana (UNU-MERIT, Maastricht University) |
| Abstract: | Entrepreneurs, managers, and scientists participate in competitive selection processes to obtain resources. The project they propose is a crucial aspect of their success. In this paper, we focus on the selection of scientists applying for academic funding by submitting a research proposal. We argue that two core dimensions of the research proposal affect the probability of funding success: its coherence with the applicant's previous work, and its alignment with subjects of general interest for the scientific community. Employing a neural network algorithm, we analyse the text of 2,494 research proposals for a prestigious fellowship awarded to promising early-stage North American researchers. We find field-specific heterogeneity in the committees' evaluations. In life sciences and chemistry, evaluators value the research proposal's coherence positively with the scientist's recent work and the proposals' alignment with the current subject of general interest for the scientific community. Conversely, in physics, evaluators give more weight to bibliometric indicators and less to the proposal coherence and alignment. Our results can be extended beyond the academic context to managerial implications in cases such as entrepreneurs and managers submitting project proposals to investors |
| Keywords: | Research trajectories, research funding, coherence, alignment |
| JEL: | I23 O32 O38 |
| Date: | 2020–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2020010&r=all |