April, 2015 | Refinancing

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Archive for April, 2015

Covington Who’s Who Selects Gary H. Mattson as an Honored Member of the Executive and Professional Registry

April 29th, 2015

The selection recognizes Gary H. Mattson’s commitment to excellence in Financial Services.

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Finance News

ABCs of Trading: Behavioral Biases affect Stock Turnover and Value

April 28th, 2015

Psychological research suggests that individuals are satisficers. That is, when confronted with a large number of options, individuals often choose the first acceptable option, rather than the best possible option (Simon, 1957). Given the vast quantity of information available and the widespread convention of listing stocks in alphabetical order, we conjecture that investors are more likely to buy and sell stocks with early alphabet names. Consistent with this view, we find that early alphabet stocks are traded more frequently than later alphabet stocks and that alphabeticity also affects firm value. We also document how these effects have changed over time.

Finance News

FAAIF to Produce Investor Visa Forum in Dubai, UAE

April 23rd, 2015

The Investor Visa Forum will take place in Dubai, UAE at the Novotel Hotel Deira City Centre on October 17-18, 2015.

Finance News

FAAIF and AFRIEF to Produce Africa Islamic Economic and Investment Forum

April 20th, 2015

The AFIIEF Forum to be held in Dubai, UAE on March 14-15, 2016.

Finance News

FAAIF and Al Huda CIBE to Conduct Joint lslamic Finance Training Event in Milan, Italy

April 19th, 2015

Zubair Mughal, CEO of Al Huda CIBE and Camille Paldi, CEO of FAAIF, plan to conduct a joint Al Huda and FAAIF Islamic finance training event on June 19-20, 2015 in Milan, Italy.

Finance News

Tax Defense Network (R), LLC, is a Recipient of the 2014 Better Business Bureau Torch Award for Ethics

April 15th, 2015

Tax Defense network (TDN) an American national tax consulting company, was selected for the 2014, Better Business Bureau (BBB) Torch Award for Eithcs.

Finance News

Bondholder Concentration and Credit Risk: Evidence from a Natural Experiment

April 14th, 2015

We exploit the impact of hurricane Katrina on insurance companies to study the relationship between bondholder concentration and credit risk. Redemption-driven sales by property and casualty (re)insurance companies exposed to hurricane Katrina are associated with a large drop in bondholder concentration faced by corporate bond issuers. Exploiting this shock to capture exogenous variation in bondholder concentration, we find that greater bondholder concentration is associated with higher bond yield spreads, as well as with firm characteristics associated with credit risk.

Finance News

Do Stock-Financed Acquisitions Destroy Value? New Methods and Evidence

April 12th, 2015

We contribute to the debate on whether stock-financed acquisitions destroy value for shareholders. A stock-financed acquisition is a joint takeover/equity-issue event. Using seasoned equity offering announcement returns, we estimate through linear prediction and propensity-score matching the share price drop that stock acquirers experience due to the financing choice. Net of this effect, stock-financed acquisitions are not value destructive, and the method of payment generally has no further explanatory power in the cross-section of acquirer returns. Our evidence is largely inconsistent with the agency costs of overvalued equity hypothesis.

Finance News

Transparency, Tax Pressure, and Access to Finance

April 12th, 2015

More transparent firms enjoy better access to finance, and also enable closer scrutiny by tax authorities and thus face a heavier tax burden, insofar as they are required to report the same data to tax authorities and investors (book-tax conformity). We study this trade-off in a model with distortionary taxes and finance rationing, and test its predictions on an international dataset. As predicted, firms facing low corporate tax rates choose high transparency, particularly if they are not very dependent on external funding. This result is confirmed by the evidence from statutory tax reforms: reductions of corporate tax rates are followed by increases in firm transparency. Moreover, firms choose higher transparency in countries with high audit quality. Investment is positively correlated with transparency, especially for firms more dependent on external finance. Results are stronger in countries with book-tax conformity.

Finance News

Can Bank Boards Prevent Misconduct?

April 12th, 2015

We study regulatory enforcement actions issued against US banks to show that both board monitoring and advising are effective in preventing misconduct by banks. While better monitoring by boards prevents all categories of misconduct, better advising prevents misconduct of a technical nature. Board monitoring increases the likelihood that misconduct is detected, increases the penalties imposed on the CEO, and alleviates shareholder wealth losses following the detection of misconduct by regulators. Our article offers novel insights on how to structure bank boards to prevent bank misconduct.

Finance News