Remove v
article thumbnail

How Emphasizing ESG Affects Firm Value

Reynolds Holding

In a new article, we offer novel insights into the conundrum of ESG emphasis and present a conceptual framework for exploring the impacts on firm value of emphasizing both nonmaterial and material ESG factors. This unexpected negative impact on firm value surpasses the positive impact of material ESG emphasis by a factor of 2.12.

article thumbnail

Acquisition premium - What is it, and How to Calculate it?

Equilest

For example, suppose a firm is valued at $ 1 million. Suppose an investor also purchased the firm for $ 1.1 In our example, the difference between the purchase price and the firm's value equals $ 0.1 If the price to be paid for the firm is $ 0.9 V = The value of the target company. .

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How Private Rights of Action in Securities Laws Affect the Capital Markets

Reynolds Holding

Few topics in the corporate and securities law literature are as controversial as securities class actions – that is, actions in which shareholders of public firms seek to collectively obtain compensation for damages resulting from false or misleading statements in corporate disclosures. Supreme Court decision in Morrison v.

article thumbnail

The governance of director compensation

Harvard Corporate Governance

Posted by Lily Fang (INSEAD) and Sterling Huang (SMU), on Monday, May 20, 2024 Editor's Note: Lily Fang is a Professor of Finance at INSEAD and Sterling Huang is an Associate Professor of Accounting at Singapore Management University. This post is based on their recent article forthcoming in the Journal of Financial Economics.

Finance 135
article thumbnail

Why Short Attacks May Compel a Company to Sue

Reynolds Holding

That decision, SEC v. As an alternative to bringing a claim based on an activist short seller’s statements, issuers might consider whether there is evidence of other forms of market manipulation in a firm’s shares. In two recent cases, Harrington v. 2022) and Kessev Tov v. CIBC , 585 F.Supp.3d 3d 405 (S.D.N.Y.

article thumbnail

Should Companies Announce Reviews of Strategic Alternatives?

Reynolds Holding

Whether to make this news public is a key decision since it can have significant consequences that affect investor reactions, the subsequent sale process (should one occur), firm operations, employees, and ultimately firm value. ENDNOTE [1] Basic v. The overall stock market return has been subtracted from all lines.

article thumbnail

What NCAA Football Teaches Us About the Connection Between Executive Pay and Performance

Reynolds Holding

By utilizing the full value of expected payouts over a contract’s life, we allow for well-documented occurrences of managerial gaming such as earnings management, where performance indicators are manipulated to reach a specific year’s benchmark at the expense of current or future firm value. In June 2021, the U.S.