Top PDF The Time Relationship between Stock option and Repurchase

The Time Relationship between Stock option and Repurchase

The Time Relationship between Stock option and Repurchase

In addition, many previous studies support that firms conduct repurchase before stock options are exercised (pre-funding hypothesis). To examine this hypothesis, Griffin and Zhu (2010) directly use option exercises in the next year. However, since the dependent variable is current repurchase, it is not appropriate to explain the past with the knowledge in the future, in other words, we cannot predict the repurchase in year t with the option exercises occurring in year t+1. Thus, current stock option outstanding can be used as a good proxy for expected future option exercises. Bens et al. (2003) argue that unexercisable options can also affect managers’ decisions to repurchase. Lin et al. (2009) document a positive effect of managerial options unexercisable on actual repurchases, Therefore, I choose stock option outstanding instead of current option exercisable to test the link between repurchase activity and expected future exercise. On the other hand, total option and executive option may affect repurchase incentive in a different way. Firms generally buy back shares in the market to avoid the dilution effects of total option exercise or to fund option exercises. Meanwhile, since repurchase, unlike dividends, would not affect the stock price, managers prefer to use repurchases over dividend when they hold a high level of stock option in order to increase their own option payoff. Thus, in our study, I distinguish between total option and executive option. In addition, I control other related variables which may affect repurchase activity (decision or actual amount).
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Share Repurchases and Stock Returns Observation from Sequential Execution Records

Share Repurchases and Stock Returns Observation from Sequential Execution Records

Using Taiwanese detailed execution process data of repurchasing firms which are required to publicize after two months, we adopt the accurate number of execution rate to evaluate the actual repurchase. Examining the extent of actually repurchased amount, we get the paradoxical result that there is little relationship of current execution rate and subsequent stock performance. However, after drawing out the first-time announcing effect from actual repurchase activities, we find that stock returns following share repurchase programs are really correlated to execution records. The prior and past average execution rate of share repurchase provides investors references to identify new announcing signals. Obviously, stock market gives more favorable reactions to firms with good reputation which promise to buyback their stocks as initially planned. As a result, firms’ management credibility is the key issue for investors to make judgments about the recurred share buyback announcements.
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The relationship between implied and realised volatility: Evidence from the Australian stock index option market

The relationship between implied and realised volatility: Evidence from the Australian stock index option market

good news enters into the market between the trade of option and the time when closing index level and futures price are recorded, then the recorded index level or futures price will be higher than the index level or futures price simultaneously corresponding to the option price, indicating that implied call (put) volatility underestimates (overestimates) the true implied volatility. A similar situation can happen with bad news which may lead to deviations in the opposite direction. In reality, good news and bad news come randomly, and hence the two effects can offset each other and the computed implied volatility will not deviate consistently from the true volatility. However, this non-synchronous measurement does cause an errors-in- variables problem (EIV), which leads to the correlation between the explanatory variable and the error term in our subsequent regressions.
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Relationship between global stock exchanges and Indian stock market

Relationship between global stock exchanges and Indian stock market

Chand and Thenmozhi (2012) found that global cues model significantly outperformed 1) past lags model and 2) technical indicators model used to predict in global markets. The analysis results suggest that most recent market information is more productive than the aged data. Study testaments that stock markets across the globe are integrated and that information on price transmissions can induce arbitrage opportunities. Thomas (2013) observed that the Indian capital market has undergone metamorphic reforms in the past five years. Every segment of the Indian Capital Market, namely, primary and secondary markets, derivatives, institutional investment, and market intermediation has experienced an impact of these changes, which has significantly improved the transparency, efficiency, and integration of the Indian market with the global markets. Kumarasamy (2013) concentrated on major informational efficiency and found with the help from many statistical tools that Indian IT stocks neither follows a random walk Nor weak from efficient.
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Two Essays on Stock Repurchases-The Post Repurchase Announcement Drift: An Anomaly in Disguise? and Intra Industry Effects of IPOs on Stock Repurchase Decisions

Two Essays on Stock Repurchases-The Post Repurchase Announcement Drift: An Anomaly in Disguise? and Intra Industry Effects of IPOs on Stock Repurchase Decisions

In examining corporate financing waves, Dittmar and Dittmar (2008) look at the aggregate patterns of equity issuances, repurchases, and mergers and find interesting linkages among these events. In particular, they find that repurchases are positively correlated with both equity issuances and mergers at the aggregate level. The correlation between repurchase and equity issuance activity is 90%. This result seems inconsistent with the market-timing explanation which predicts a negative correlation between equity issuance waves and repurchases waves. They observe that both equity issuance waves and repurchase waves are reactions to a common stimulus, GDP growth. Specifically, both repurchases and issues tend to increase over an economic expansion and decrease over an economic contraction. Growth in issues tends to occur in earlier stages of the cycle than growth in repurchases because, in the early stage of the cycle, firms are in greater need of funds to finance their relatively strong investment opportunities. 13 . In the later stages, firms experience excess cash and will distribute it through stock repurchases. Even though we control for the effects of the firm’s cash flow position in the regressions, we want to examine whether the impacts of IPO waves on the rival firms’ repurchasing behavior are influenced by business cycles as pointed out by Dittmar and Dittmar (2008). To address this issue, we stratify our sample period into expansion and contraction periods using the National Bureau of Economic Research (NBER)’s definition and re-run our regressions. 14 In addition, since the sample period includes the
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Chagomerana_unc_0153D_16468.pdf

Chagomerana_unc_0153D_16468.pdf

Our mathematical modeling study provides the first quantitative estimates of HIV incidence reductions associated with Option B+ in Malawi, the first country to implement this PMTCT strategy at a national level. Our results suggest that the Option B+ strategy has considerable potential to reduce female-to-male HIV transmission in addition to its benefits for preventing vertical transmission. The incidence reductions that we observed were particularly notable when we assumed that Option B+ affected not only the duration of therapy (by calling for lifelong treatment even after breastfeeding cessation), but also the proportion of pregnant women initiating ART to begin with (by removing CD4 testing barriers). As reflected in our model, national treatment guidelines recently increased the CD4 threshold for ART-for-health from 350 to 500, such that more women in the “Option B” scenario now remain eligible for ART after breastfeeding cessation than was the case prior to 2014. This higher CD4 threshold results in a smaller difference in ART duration under Option B+ vs. Option B, such that increased ART uptake due to removal of CD4 testing barriers may be an important and
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Recovering a time homogeneous stock price process from perpetual option prices

Recovering a time homogeneous stock price process from perpetual option prices

While preparing this manuscript we came across a preprint by Alfonsi and Jour- dain, now published as [1]. The aim of [1], as in this article, is to construct a time- homogeneous process which is consistent with observed put prices. However, the method is different and considerably less direct. Alfonsi and Jourdain [1] construct a parallel model such that the put price function in the original model (expressed as a function of strike) becomes a call price function expressed as a function of the initial value of the stock. They then solve the perpetual pricing problem for this parallel model and, subject to solving a differential equation for the optimal exercise boundaries in this model, give an analytic formula for the volatility co- efficient. In contrast, the approach in this paper is much simpler and, unlike the method of Alfonsi and Jourdain, extends to the irregular case.
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RECOVERING A TIME-HOMOGENEOUS STOCK PRICE PROCESS FROM PERPETUAL OPTION PRICES

RECOVERING A TIME-HOMOGENEOUS STOCK PRICE PROCESS FROM PERPETUAL OPTION PRICES

No-arbitrage enforces some fundamental convexity and monotonicity con- ditions on the put prices, and if these fail then no model can support the observed prices. If the observed put prices are smooth then we can use the theory of differential equations to determine a diffusion process for which the theoretical perpetual put prices agree with the observed prices, and our key contribution in this case is to give an expression for the diffusion co- efficient of the underlying model in terms of the put prices. (It turns out that this expression uniquely determines the volatility co-efficient at price levels below the current stock price, but the volatility function is undeter- mined above the current stock price level, except through a single integral condition.) The key idea is to construct a dual function to the perpetual put price, and then the diffusion co-efficient can be found easily by taking derivatives of this dual.
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VITA Nicholas D. Theodorakis

VITA Nicholas D. Theodorakis

Barlas, A., Koustelios, A., Theodorakis, N.D., & Robinson, L. (2007). Predicting fans’ repurchase intentions: The role of service quality and team identification. Proceedings of the 15 th Congress of the European Association for Sport Management. Torino, Italy.

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Effect of E-Service Quality on Customer Online Repurchase Intentions

Effect of E-Service Quality on Customer Online Repurchase Intentions

The purpose of this study was to examine the relationship between e-service quality and online customer repurchase intentions with mediating variables e-satisfaction and e-loyalty in [r]

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Book/Tax Conformity and Equity Compensation

Book/Tax Conformity and Equity Compensation

There are at least two possibilities. First, forfeiture could be treated in the same manner as the expiration of an unexercised option, i.e., producing a capital loss. Taxing equity recipients on an accrual basis without explicit relief for awards that fail to vest might strike some as particularly unfair because of the resemblance to an endowment tax. 128 An unvested grant of equity compensation represents a heightened ability to earn income in the future as the employee performs services that turn her human capital into cash. Taxing prior to vesting – that is, taxing the employee currently based on the performance of future services – comes close to treating mere ability, rather than the actual performance of services, as the basis of taxation, particularly if the taxpayer is not made whole for taxes paid on awards that are forfeited. Taxing such unrealized returns from human capital could be viewed as infringing on the taxpayer’s autonomy by forcing her to continue employment in a high-paying job just to pay the tax on services she has
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The Relationship between Gait Kinetics and Normalized Gait Kinematics

The Relationship between Gait Kinetics and Normalized Gait Kinematics

Mobile Falls Risk Assessment Laboratory team then sent to New Mexico State University Laboratorio de Biomechanica (NMSU-LdB) for subsequent analysis. Results: Impulse, maximum force, and peak pressure with regards to standard deviation showed to be only slightly varied (≤1 difference) while the other variables had a greater difference in standard deviation when comparing the right and left leg. There was greater overall deviation in the right leg than left excluding max peak pressure which shows a minimal of 3.2% greater in the left leg than the right leg. All variables were correlated to stride length to leg length ratio, but the normalized variables had a stronger correlation (p < 0.01) than the non- normalized variables on both the right and left sides. Conclusion: These data indicate there are significant correlations between right and left leg maximum resultant ground force reaction, maximum peak pressure and impulse and stride length to leg length ratio. These relationships may provide a possible normalization factor allowing gait characteristics to be compared across individuals of different builds.
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MOBILITY TAXATION A GUIDE FOR ISSUERS. Authored by Rutlen Associates, LLC

MOBILITY TAXATION A GUIDE FOR ISSUERS. Authored by Rutlen Associates, LLC

In addition, the data has to be kept in a way that can easily be accessed in the event of a transaction. If the HRIS is the system of record for mobility, it may not be feasible to run daily reports from HRIS to compare against stock transactions. There are several ways to address this issue depending on the solution chosen by a company and the capabilities of its systems. (See System Capabilities.) Possible methods include:

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The relationship between accounting information and stock volatility

The relationship between accounting information and stock volatility

ABSTRACT: In recent years, accounting information system received a lot of attention, it facilities managers to take appropriate actions related to issues in organization, if AIS output is not accurate management will take wrong decisions, moreover, it considered competitive advantage for organization with well design accounting information system. Failure to implement well accounting information system will have adverse effects on organization success. Poor information quality may have adverse effects on decision making, for example indicate that error in inventory database may cause to take wrong decision by managers, resulting in over-tock or under-stock which had severe impact on company profitability and customer satisfaction. The volatility of stock prices in the stock market has been of concern to researchers. Stock return volatility which represents the variability of stock price changes could be perceived as a measure of risk faced by investors. The relationship between accounting information disclosure and stock volatility is stimulating considerable interest across an eclectic range of researchers and importantly capital market investors, forecast analyst and management.
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Thesis

Thesis

In related research on the financial market effects of the EU ETS, Mo, Zhu, and Fan (2012) used a slightly different CAPM style model and regression method than Oberndorfer. They differ from Oberndorfer by excluding changes in gas prices as a control variable and by using futures prices from the IntercontinentalExchange (ICE) instead of spot prices from the European Energy Exchange (EEX). Mo, et al. accounts for the issues of thin initial trading volume in the EUA futures market by using a regression technique which implements lead and lag terms. The authors also looked at the relationship in a much more disaggregated manner than Oberndorfer. They ran separate regressions for each electricity firm to be able to see the
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Sprottivas And Implications For Productivity

Sprottivas And Implications For Productivity

Result 3. Production converged to the steady state in the BL and RSX but diverged in the RS (Fig. 3). In the BL average pro- duction of new asset units was within one unit of the steady-state level of eight in all periods except period 1. This was true even in early periods when the short-run equilibrium production was below eight because units were trading somewhat above their short-run equilibrium price. The constant term in our production regression model estimates that producers produced 9.13 units in the first period of the BL (P < 0.001). Statistically this is sig- nificantly greater than the steady state (Wald test, P = 0.011), but the estimated time trend is negative and statistically significant (β = −0.88, P = 0.005), indicating convergence over time. Wald tests reject the null hypothesis that production was at the steady state level of eight units at the 5% level for periods 1 and 2, and at the 10% level for period 3 (P = 0.058). In all remaining pe- riods the tests are not statistically significant.
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From the Battlefield to the Boardroom R. Module. Four. Civilian Benefits Overview

From the Battlefield to the Boardroom R. Module. Four. Civilian Benefits Overview

Employee Stock Ownership Plans (ESOPs): An ESOP is a type of tax-qualified employee benefit plan in which most or all of the assets are invested in stock of the employer. Like profit sharing and 401(k) plans, an ESOP generally must include at least all full-time employees meeting certain age and service requirements. Employees do not actually buy shares in an ESOP. Instead, the company contributes its own shares to the plan, contributes cash to buy its own stock (oen from an existing owner), or, most commonly, has the plan borrow money to buy stock, with the company repaying the loan. All of these uses have significant tax benefits for the company, the employees, and the sellers. Employees gradually vest in their accounts and receive their benefits when they leave the company (although there may be distributions prior to that).
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The relationship between conditions governing rupture and flow

The relationship between conditions governing rupture and flow

between protein chains, like the rungs in a ladder. It has been found that cystine does make unyeasted dough feel less short. Cysteine (HOOC· CH(NH2)CH2SH) would be expected to be less effective in this respect, because only one end of the molecule can attach itself to the protein chain, but on the other hand, it is a reducing agent, which may account for the fact that in practice it is found to be not much less effective than cystine. Other amino acids, such as aspartic acid and m-aminobenzoie acid, become less effective as their polar properties diminish.7

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D. IICENBERRY* J. LAKONISHOK**

D. IICENBERRY* J. LAKONISHOK**

Toronto Stock Exchange firms announcing repurchase programs between 1989 and 1995 show excess performance measured relative to a Fama-French (1993) three-factor model of approximately .5[r]

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Relationship Between Stock Market Returns And Exchangerates In Emerging Stock Markets

Relationship Between Stock Market Returns And Exchangerates In Emerging Stock Markets

investors guarantees that past and current data is completely reflected in present stock prices. It can be stated that when there are no systematic ways to obtain higher rates of return, and then the stock market is efficient (Fama, 1970). In line with this conclusion, another study found that the investors are unable to gain more profit than normal through the prediction the movements of future stock (Chong and Goh, 2003). Analysis of dynamic interactions over post- sample period by Impulse-Response Functions and Variance Decomposition indicate that movements in TASE Index do influence the performance of PEX (Suryanto, T., & Abdul Hadi, A. R, 2015). In conclusion, as the market efficient, prediction of current (future) stock prices is not possible, although we have information on the past (current) levels of economic activities.The ASEAN countries such as Malaysia, Singapore, Thailand, Philippines and Indonesia can be conceived as the emerging stock markets. Their stock market operation was indicated by their market index, respectively. In sequences, the stock markets were handled by their Exchange is known as Bursa Malaysia (BURSA), Singapore Exchange (SGX), Stock Exchange of Thailand (S.E.T), Philippines Stock Exchange (PSE) and Indonesia Stock Exchange (IDX).The formation of Malayan Stock Exchange (MSE) in 1960, initiated the establishment of Bursa Malaysia in 1960, regardless of the fact that the real
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