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Exploring Improvements of Post-Acquisitions Corporate Performance in Industrial Sector in the Egyptian Stock Market
Ahmed Wael Abdelrahman,
Khairy Elgiziry
Issue:
Volume 7, Issue 3, May 2019
Pages:
60-75
Received:
27 April 2019
Accepted:
4 June 2019
Published:
26 June 2019
Abstract: The purpose of this study is to examine the impact of Egyptians Acquisitions on the post-performance of the acquired companies from the period of 2003 to 2015 by the use of event study methodology. This is done by studying the financial post-performance (includes: liquidity, activity, profitability and capital structure ratios) of a sample consists of 17 companies from the industrial sector as dependent variables, and comparing their results with the pre-performance and the acquisition event as an independent variable. By using a non-parametric Mann-Whitney-Test that can replace the unpaired t-test in the case of small samples, in addition to the factor analysis. The Study tests the significant difference between performance of the acquired companies before and after the acquisition. Empirical results for the whole sample showed a negative significant difference between both the profitability and the capital structure performance of the acquired companies before and after the acquisition. On the other hand, it showed an insignificant difference between both the liquidity and the activity performance of the acquired companies before and after the acquisition. Studying the sub-industrial sectors shows that the Industry Sector has an impact on the performance of the acquired companies and that appears in The Basic Resources and Utilities Sub-sector liquidity, profitability and capital structure performance and has no impact on financial activity performance. For the Construction and Materials Sub-sector there is no impact on the liquidity, profitability and financial activity performance. However, there is a significant impact on the capital structure. For the Personal and Household Products Sub-sector, there is a significant impact on profitability performance, and there is no impact on liquidity, financial activity, and capital structure performance. For the Food, Beverages and Pharmaceutical Sub-sector there is no impact on the liquidity, profitability and financial activity performance and there is a significant impact on capital structure performance. By studying the impact of the Capital Issued on the post-performance of the acquired companies, the researcher showed that there is an impact on the capital structure performance for the acquired companies below 50 M and on profitability performance above 50 M issued capital. On the other hand, there is no impact on the other performance measures for companies above and below 50 M issued capital. Finally, the study results introduced some useful recommendations for the acquisition events in the Egyptian Market.
Abstract: The purpose of this study is to examine the impact of Egyptians Acquisitions on the post-performance of the acquired companies from the period of 2003 to 2015 by the use of event study methodology. This is done by studying the financial post-performance (includes: liquidity, activity, profitability and capital structure ratios) of a sample consists...
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A Survey on Corporate Sustainability Reporting: The Case of Iran
Bita Mashayekhi,
Hossein Shaker Taheri,
Mehdi Momeni Taheri
Issue:
Volume 7, Issue 3, May 2019
Pages:
76-87
Received:
17 May 2019
Accepted:
17 June 2019
Published:
27 June 2019
Abstract: Today, the issue of corporate sustainability is noted both in academic literature and in the business environment, and there are many companies and organizations that want to make their operations sustainable and communicate different dimensions of sustainability in their business to stakeholders through sustainability reporting. This paper seeks to provide a framework for corporate sustainability reporting by reviewing existing literature on sustainability reporting, taking into account the expertise of domestic experts, to provide a roadmap for developing corporate sustainability reports in Iran. The statistical population of this study includes professionals and academics, including university teachers and post- graduate students in business majors. Our sample was determined via judgment sampling and data was obtained through 119 designed questionnaires. The results of this research is summarized in a Corporate Sustainability Reporting Framework for Iran, which is developed based on Seven research questions related to preparers of sustainability reports; determinants of sustainability reporting; the content of sustainability reports; corporate governance mechanisms necessary for sustainability reporting; challenges and risks with regard to sustainability reporting; benefits of sustainability reports; and assurance of sustainability reports.
Abstract: Today, the issue of corporate sustainability is noted both in academic literature and in the business environment, and there are many companies and organizations that want to make their operations sustainable and communicate different dimensions of sustainability in their business to stakeholders through sustainability reporting. This paper seeks t...
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The Relationship Between Treasury Cash Management and Monetary Policies
Chang Tang,
Qiuyan Man,
Qinyuan Zhao
Issue:
Volume 7, Issue 3, May 2019
Pages:
88-94
Received:
21 April 2019
Accepted:
18 June 2019
Published:
29 June 2019
Abstract: Treasury cash management interrelates with the budget implementation, monetary policies, debt management and financial market development. The relationship between the treasury cash management and the monetary policies is the most crucial and most primary one. Tax revenues are deposited in treasury account that affects monetary policy. At the same time, the treasury cash will also have an impact on the money market through fiscal expenditure and market operation. The relationship between the treasury cash management and monetary policy in developed countries has formed a relatively stable institutionalized mechanism. However, the treasury reform in developing countries faces various difficulties. It is very important to sort out the relationship between the treasury cash management and monetary policy for the reform of the national treasury system in developing countries. This paper takes China as the research object and discusses the relationship between the treasury cash management and the monetary policies. The analysis results show that the treasury cash management mainly affects the monetary policies by the stock funds, and different effects are accounting for corresponding investment methods. Investment in the fixed-term deposits in the commercial banks, due to the existence of collateral effect that it cannot lead to any equivalent increments of the liquidity in the commercial banks. Whereas investment in the monetary market may have an impact on short-term interest rates.
Abstract: Treasury cash management interrelates with the budget implementation, monetary policies, debt management and financial market development. The relationship between the treasury cash management and the monetary policies is the most crucial and most primary one. Tax revenues are deposited in treasury account that affects monetary policy. At the same ...
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The Influence of Audit Committee Characteristics on Modified Audit Opinion in Jordan
Saleh Zaid Alkilani,
Wan Nordin Wan Hussin,
Basariah Salim
Issue:
Volume 7, Issue 3, May 2019
Pages:
95-106
Received:
27 April 2019
Accepted:
11 June 2019
Published:
4 July 2019
Abstract: The Jordanian Corporate Governance Code (JCGC) was first enacted in 2004 and revised in 2017. It offers standards for ethical and decent practices in the corporates. Law in Jordan in 2009 has enforced the formation of an audit committee for all listed companies. Literature has substantiated that the audit committee characteristic (ACCs) impact the quality of financial reporting. This work investigates the role of ACCs in lessening the prospect of corporates in obtaining modified audit opinion in the context of Jordan. Four ACC problems (expertise, independent, meeting, and size) have been studied and the modified audit opinion. The total sample of 117 listed companies on the Amman Stock Exchange (ASE) was studied. The relationship between the modified audit opinions (dependent variable), and ACCs (expertise, independent, meeting, and size; as independent variables) was analyzed using logistic regression. The ACCs is projected to effectively improve the quality of financial reporting, and thus, decrease the prospect of corporate in obtaining modified audit opinion. The findings according to the listed companies from 2012 to 2017 in Jordan showed that audit committee (AC) expertise validates this likelihood. Lastly, there is no effect of AC independent, size, and the number of meetings held on the modified audit opinion. General, the findings have policy implications on enhancing corporate governance (CG) efficacy concerning the quality of financial reporting.
Abstract: The Jordanian Corporate Governance Code (JCGC) was first enacted in 2004 and revised in 2017. It offers standards for ethical and decent practices in the corporates. Law in Jordan in 2009 has enforced the formation of an audit committee for all listed companies. Literature has substantiated that the audit committee characteristic (ACCs) impact the ...
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