Browsing by Subject "Financial analysts"
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Item Do institutional investors and financial analysts impact bank financial reporting quality?(2015-05) Yust, Christopher Gordon Edward; Yu, Yong, Ph. D.High quality financial reporting is critically important for bank regulation, particularly market discipline, but limited evidence exists on why banks provide different levels of financial reporting quality. I examine whether institutional investors and financial analysts impact bank financial reporting quality. Although I find no impact of analysts on bank financial reporting quality, institutional ownership is positively associated with financial reporting quality, and this relation is strongest for banks with high information asymmetry and for “monitoring” institutional investors. Institutional investors also sell shares following the announcement of a restatement, suggesting they are willing to use the threat of exit as a mechanism to influence bank managers and demand financial reporting quality. Finally, I find institutional investors demand financial reporting quality primarily for high risk banks and also reduce ex-ante bank risk and ex-post non-performing loans. Collectively, these results suggest institutional investors are an important component of bank governance.Item Uncovering key actors in the marketing-firm value link(2013-05) Sihi, Debika; Srinivasan, RajiThe objective of this dissertation is to provide insights on key actors who affect the link between marketing and firm value. The first essay examines financial analysts who provide earnings estimates about firms, thereby connecting firm and the stock market. The author uncovers whether and how financial analysts link market-based assets (e.g., brand equity) to a firm's cash flows, drivers of firm value. The author predicts market-based assets affect a firm's cash flow level, volatility, and acceleration through two marketing strategies, the ability to charge price premiums and penetrate new product markets. Hypotheses are tested using data from surveys of 220 North America based financial analysts. Based on analysts' feedback, brand and channel equity affect a firm's ability to penetrate new product markets, and brand equity also affects a firm's ability to charge price premiums. The ability to charge price premiums increases cash flows level while the ability to penetrate new product markets enhances cash flow level and acceleration of cash flows. Finally, channel equity directly lowers cash flow volatility and market intelligence enhances cash flow level. The findings offer evidence that analysts connect a firm's market-based assets to the generation of its cash flows. This has important implications for managers who maintain communications with the financial analyst community. In the second essay, the author examines the impact of a firm's shareholders and board of directors on the marketing-firm value link. The author hypothesizes that a firm's shareholders and board of directors affect how its advertising and R&D dollars are spent and also affect stock market participants' perceptions of this spending, thereby affecting its firm value. Hypotheses are tested using data on 575 publicly listed firms in the United States. The findings indicate that higher shareholder governance and higher marketing spending (both advertising and R&D spending) increase firm value. However, somewhat interestingly, higher board governance and higher advertising spending decrease firm value. These results highlight the importance of considering corporate governance when analyzing the marketing-shareholder value link and offer yet another important reason for the marketing function to have a voice in the firm's boardroom.