1 / 31

Topics for Master Thesis Research

Topics for Master Thesis Research. Yulia Ilina Asc . Prof. Department of Finance and Accounting. Fields of Research. Corporate governance and corporate finance Financial markets and institutions. Corporate governance and corporate finance.

magdalenec
Download Presentation

Topics for Master Thesis Research

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Topics for Master Thesis Research YuliaIlina Asc. Prof. Department of Finance and Accounting

  2. Fields of Research • Corporate governance and corporate finance • Financial markets and institutions

  3. Corporate governance and corporate finance • Corporate governance, financial performance and companies disclosure • Board of directors and financial performance • Companies organizational form changes: impact of corporate governance and financial performance

  4. Corporate Governance • Corporate governance – economic, legal and institutional framework in which corporate control and cash flow rights are distributed among shareholders, managers, and other stakeholders of the company • (for detailed discussion see Eun C., Resnick B. International Financial Management. McGraw Hill, 2007. Chapter 4)

  5. Corporate governance, financial performance and companies disclosure (transparency) Disclosure(transparency) – the voluntary disclosure of information about the company in exceed of what is prescribed by the legislation

  6. Corporate governance, financial performance and companies disclosure (transparency) Research ideas • Exploring relationships between company’s financial performance (and other corporate determinants) and the level of corporate disclosure (transparency). • Identifying major determinants of the corporate voluntary disclosure Hypotheses: • The high level of disclosure (transparency index) could positively affect the financial performance. • The high level of corporate governance mechanisms (high corporate governance rating) could positively affect the level of transparency of the company.

  7. Corporate governance, financial performance and disclosure Existing research: Parsa S., Chong G., and Isimoya E. 2007. Disclosure of governance information by small and medium-sized companies // Corporate Governance 7 (5): 635-648. (examines the extent of compliance with the governance regulatory requirements by small and medium-sized companies (SMEs) listed on the alternative investment market (AIM)).

  8. Corporate governance and disclosure: existing research Huafang X., Gianguo Y. 2007. Ownership structure, board composition and corporate voluntary disclosure. Evidence from listed companies in China. Managerial Auditing Journal 22 (6): 604-619 (the paper studies how corporate governance factors impact the voluntary disclosure of Chinese companies) Liu J., Eddie I. 2007. Determinants of disclosure of A-, B- and H-share companies. Asian Review of Accounting15 (1): 72-92 (examines the issues relating to corporate financial reporting of Chinese listed companies under specified institutional settings, associations are hypothesized and tested between the level of corporate disclosure and the following corporate determinants: company size, profitability, auditor, leverage, industry and ownership structure).

  9. Corporate governance and disclosure: existing research Бухвалов А.В., Ильина Ю.Б., Бандалюк О.В. Электронное корпоративное управление: учет интересов стейкхолдеров // Вестник СПбГУ. Серия Менеджмент. Вып.1. 2007 (examines the specifics of companies transparency in different national models of corporate governance)

  10. Corporate governance and board of directors performance Research idea: The impact of board composition, board structure, board performance on company’s financial performance

  11. Corporate governance and board of directors performance: existing research Dulewicz V., Herbert P. 2004. Does the Composition and Practice of Boards of Directors Bear Any Relationship to the Performance of Their Companies? Corporate Governance: International Review 12 (3): 263-280. Examples of hypotheses tested: H1. Where the roles of Chairman and CEO are separated (combined), company performance will be higher. H2. A higher proportion of outside directors (executive directors) on the board leads to higher company performance. H3. Larger (smaller) boards companies will have higher company performance.

  12. Corporate governance and board of directors performance: existing research Weir C., Laing D. 2003. Ownership structure, board composition and the market for corporate control in the UK: an empirical analysis / Applied Economics (35): 1747–1759 (analyses the board composition and ownership structures of a sampleof companies that have been acquired and those of a matching control sample thathave not. There is significant governance differences between acquired firms and thecontrol sample. Firms with the following characteristics were more likely to beacquired: they had the same person acting as CEO and Chair, a higher proportionof non-executive directors, larger institutional shareholdings and higher directorshareholdings).

  13. Corporate governance and board of directors performance: existing research • Bǿren Ǿ., Strǿm R. 2006. Aligned, informed, and decisive: characteristics of value-creating boards/ Working Paper. BI Norwegian School of Management. (examines the relationship between the board composition and companies performance in Norway. Find that performance improves when directors own equity in the firm, have wide information networks to other firms, and when the board has low gender diversity, no employee directors, and small size)

  14. Companies organizational form changes: impact of corporate governance and financial performance • Research idea: to study the relationship between the change of organizational form of business and corporate governance and financial performance factors • Hypotheses: • Hypothesis 1. Most Russian open and closed JSCs are homogeneous regarding the issue of changing organizational form of business. • Hypothesis 2. Corporate governance and control factors could affect the possibility of organizational form change. • Hypothesis 3. Company financial performance may affect the decision on changing the organizational form of business.

  15. Companies organizational form changes: impact of corporate governance and financial performance Березинец И.В., Ильина Ю.Б. 2008. Изменение организационно-правовой формы российских компаний: взаимосвязь с финансовыми результатами деятельности. Вестник С.-Петербургского университета. Сер. Менеджмент (1): 31-52.

  16. Companies organizational form changes: impact of corporate governance and financial performance Existing research • Damodaran A., John K., Liu C. 1997. The Determinants of Organizational Form Changes: Evidence and Implications from Real Estate. Journal of Financial Economics (45): 169−192. • Damodaran A., John K., Liu C. 2005. What Motivates Managers? Evidence from Organizational Form Changes. Journal of Corporate Finance (12): 1−26.

  17. Financial markets and institutions • American Depository Receipts (ADRs) • Initial Public Offerings (IPO) • Mutual funds performance

  18. American Depositary Receipts • ADR — negotiable instrument, issued by US depositary bank, representing shares of non-US company. • Issued to allow foreign company to list its shares at the US stock market

  19. American Depositary Receipts Research ideas: • The impact of ADR’s issue (cross-listing) on the company’s position at the national stock market

  20. American Depositary Receipts: existing research • Benninga S., Helmantel, M,. and S. Oded. 2005. The timing of initial public offerings. Journal of Financial Economics 75:115-132. • Doidge, C., Karolyi, A., and R. Stulz. 2004. Why are foreign firms listed in U.S. worth more? Journal of Financial Economics 71:205-238. • Karolyi, A. 2004. The role of American depository receipts in the development of emerging equity markets. The Review of Economics and Statistics 86(3): 670-690.

  21. Initial Public Offering (IPO) • Initial Public Offering – first-time offering of shares by a specific firm to the public. • Key success factor for an IPO - correctly pricing the offering

  22. What’s going on with shares at the first trading day after the IPO? Increase in price What does it mean for the company doing IPO? Looses money “Money left on the table” Number of shares issued times the change from the offer price to the first day closing price

  23. IPO pricing and aftermarket The initial return Initial (first-day) return: Was especially high for Internet firms during 1996-1999 (84% on average in 1998) Example. On January 15, 1999, an IPO by an Internet stock called Market Watch.com jumped from the initial offer price of $17 per share to $130 per share within the first two hours of trading (665% return) and then declined to $97.50 per share by the end of the day (declined to less than $3 within a few years).

  24. Russian companies IPOs

  25. Initial Public Offering (IPO) Research ideas: • Factors affecting the IPO decision – corporate governance, financial performance • Factors affecting underpricing (first day initial return) • Entrepreneurial IPOs

  26. Initial Public Offering (IPO): existing research • Filatotchev I. 2006. The effects of executive characteristics and venture capital involvement on board composition and share ownership in IPO firms. British Journal of Management (17): 75-92. (paper examines factors affecting board selection and share ownership in initial publicofferings (IPOs).

  27. Initial Public Offering (IPO): existing research Chanine S., Filatotchev I., Wright M. 2007. Venture capitalists, business angels, and performance of entrepreneurial IPOs in the UK and France. Journal of Business, Finance and Accounting 34 (3-4): 505-528. (this paperanalyses factors determining the underpricing of entrepreneurial IPOs – corporate governance and financial performance)

  28. Initial Public Offering (IPO): existing research Derrien F. 2005. IPO pricing in “hot” market conditions: who leaves money on the table? Journal of Finance. 60:487-521 (the paper explores the impact of investor sentiment, individual investors and institutional investors demand for IPO shares, affecting IPO pricing, initial returns, long-run performance).

  29. Mutual funds performance Mutual fund – financial institution, that issues shares and invests the proceeds in assets portfolio.

  30. Mutual funds: research ideas Research ideas: Factors affecting the demand for investments in mutual funds (return on investments, fund’s rating, size etc.) Measuring fund’s performance - comparative analysis for different countries

  31. Mutual funds: existing research Kothari S.P., Warner J.B. 2001. Evaluating mutual fund performance. The Journal of Finance. 56 (5): 1985-2010. (examine different performance measures) Pollett J., Wilson M. 2008. How does size affect mutual fund behavior? JournalofFinance. Vol. 63.Issue 6: 2941-2969. (Authors found that althoughassetgrowthhaslittleeffectonthebehaviorofthetypicalfund, largefundsandsmall-capfundsdiversifytheirportfoliosinresponsetogrowth. Greaterdiversification, especiallyforsmall-capfunds, isassociatedwithbetterperformance).

More Related