| 1. |
- Baker, Kent, et al.
(författare)
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Stockholdings of first-time and more experienced investors
- 2018
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Ingår i: Review of Behavioral Finance. - : EMERALD GROUP PUBLISHING LTD. - 1940-5979. ; 10:2, s. 146-162
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Tidskriftsartikel (refereegranskat)abstract
- Purpose The purpose of this paper is to examine whether socio-economic factors influence portfolio composition of individual investors investing in stocks for the first time and how these factors relate to stock portfolio performance. Design/methodology/approach The study uses cross-sectional time-series analysis to examine a unique and detailed data set of Swedish stockholdings. Findings The results show that first-time investors do not hold diversified portfolios. They experience high market risk and, on average, underperform more experienced investors. Males have higher unsystematic risk in their portfolios than females and older investors have more diversified portfolios compared to younger investors. Research limitations/implications The results show that individual investors should improve their insights by incorporating risk when investing in stocks. Practical implications Given the results of this paper, the movement from defined benefit to defined contribution pension schemes in many countries raises the issue of the need to better understand and monitor the risks in stock portfolios. Originality/value This study provides insights into whether socio-economic factors influence portfolio composition, the extent to which socio-economic factors and portfolio characteristics relate to portfolio returns, and whether portfolio performance between first-time and more experienced investors differs.
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| 2. |
- Abrahamson, Martin, 1977-, et al.
(författare)
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Allocation of shares to foreign and domestic investors : Firm and ownership characteristics in Swedish IPOs
- 2015
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Ingår i: Research In International Business and Finance. - : Elsevier. - 0275-5319 .- 1878-3384. ; 34, s. 52-65
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Tidskriftsartikel (refereegranskat)abstract
- In this article, we analyze underpricing of initial public offerings (IPOs) and holdings following offerings in Sweden. By exploiting a unique hand-collected data set with information on the ultimate holdings by institutional and individual investors, as well as boards of directors, we find, as most prior studies, that IPOs on average are underpriced. IPOs with low (high) initial return have higher (lower) holdings by individual investors. Institutional investors are, to a greater extent than individual investors, also able to identify underpriced firms.
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| 3. |
- Abrahamson, Martin, 1977-, et al.
(författare)
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Executive Compensation Contracts and Ownership Structure
- 2010
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Konferensbidrag (refereegranskat)abstract
- We study executive compensation packages and ownership structures for a sample of firms listed on the Stockholm Stock Exchange over the period 1999 to 2008. The basic question we raise is whether strong CEOs can set their own salaries and bonuses given the composition of group management and institutional ownership. With the use of exclusive ultimate ownership records we can identify the relationship between ownership and executive compensation. Collectively, we find a positive relationship between strong CEOs and compensation. Moreover, compensation is related to the composition of ownership and breadth of ownership. Firms with high foreign institutional ownership are associated with higher compensation to the CEO. These results affect the possibility of an all European compensation strategy.
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| 4. |
- Abrahamson, Martin, 1977-, et al.
(författare)
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Information Asymmetries among European Investors : Evidence from Swedish IPOs
- 2011
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Ingår i: 13th Annual SNEE (Swedish Network for European Economic Research) Conference, May 17-20, 2011 . Session F1: European Corporate Finance. ; , s. 1-16
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Konferensbidrag (refereegranskat)abstract
- We study underpricing and equity holdings following initial public offerings (IPOs) in Sweden over the sample period 2000 through 2009. We document, as most prior studies of IPOs, that they on average are underpriced (i.e., associated with a positive initial return). IPOs with a low (high) initial return have higher (lower) equity holdings by retail investors. Our analysis of domicile of institutional investors indicates that foreign institutional investors have preferences for holdings in IPOs characterized by a high initial return and large capitalization values. Analysis of overseas institutional holdings indicates existence of information asymmetries related to distance.
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| 5. |
- Abrahamson, Martin, 1977-, et al.
(författare)
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Strong CEOs and Ownership Structure
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Annan publikation (övrigt vetenskapligt/konstnärligt)abstract
- Purpose The purpose of this paper is to examine compensation to Swedish executives over the period 1999 to 2008 and whether domestic and foreign equity ownership influence levels. Design/methodology/approach We use the strength of the Chief Executive Officer (CEO), defined as the ratio between total compensation to the CEO and total compensation to Group management, as our primary variable of interest. Cross-sectional regression analysis is used to examine if the domiciles of stockholders as well as firm specific factors can predict compensation. Findings We find a positive relationship between compensation levels to the CEO and foreign institutional investors. Higher foreign institutional holdings reduce the strength of the CEO. Our findings do not support the claim that compensation to CEO is related to firm behaviour or market related valuation measures. Practical implications This paper finds that holdings by foreign investors are negatively related to the strength of the CEO.
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| 6. |
- Abrahamson, Martin, 1977-, et al.
(författare)
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Valuation of Swedish IPO Companies : Who Receives the Money Left on the Table?
- 2011
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Ingår i: 2nd Annual Nordic Financial Accounting.
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Konferensbidrag (refereegranskat)abstract
- We study underpricing and equity holdings following initial public offerings (IPOs) in Sweden over the sample period 2000 through 2010. By exploiting a unique data set, with information of the ultimate holdings by institutional as well as individual investors in these firms, we make several original contributions to the existing literature related to IPOs as our data are sharper and more detailed than what have been used in prior studies. We document, as most prior studies of IPOs, that they on average are underpriced (i.e., associated with a positive initial return). IPOs with low (high) initial return have higher (lower) equity holdings by retail investors. We find that institutional investors are, to greater extent than individual investors, able to identify firms with a high initial return (i.e. receives the money left on the table). Hence, our data support the generally accepted view that institutional investors are better equipped to process information. We also confirm that the relationship between underpricing (the initial return) and offer price is U-shaped, as first reported by Fernando, Krishnamurty and Spindt (2004). Our multivariate analysis shows that individual investors have preferences for low priced IPOs whereas domestic (foreign) institutional investors have preferences for low (high) priced IPOs. Our analysis of domicile of institutional investors indicates that foreign institutional investors have preferences for holdings in IPOs characterized by a high initial return and large capitalization values. Analysis of overseas institutional holdings indicates existence of information asymmetries related to distance.
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| 7. |
- Baker, H. Kent, et al.
(författare)
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Investors and dividend yields
- 2020
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Ingår i: Quarterly Review of Economics and Finance. - : Elsevier BV. - 1062-9769 .- 1878-4259. ; 76, s. 386-395
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Tidskriftsartikel (refereegranskat)abstract
- This paper examines investor preferences for holding stocks with different dividend yields in a low market interest rate environment. Using a unique dataset reflecting the ultimate stock ownership in publicly traded Swedish firms, we examine if different categories of investors have specific preferences for dividends and the size of the dividend yield. We find that domestic institutional investors, unlike foreign investors, have higher holdings in stocks with a high dividend yield. Using multivariate analysis, we document that stock portfolios with dividend-paying stocks outperform those with non-dividend-paying stocks. After controlling for the size of the dividend yield, we obtain mixed results involving stock performance for dividend-paying stocks and the results indicate no strong difference in the period following cuts in market interest rates.
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| 8. |
- Baker, H. Kent, et al.
(författare)
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Payouts and stock ownership
- 2021
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Ingår i: Journal of Multinational Financial Management. - : Elsevier BV. - 1042-444X .- 1873-1309. ; 60
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Tidskriftsartikel (refereegranskat)abstract
- Using a unique Swedish database that records the ultimate stockholdings in public firms, we decompose stock ownership by domiciles using votes rather than cashflows. We then study the impact of variables related to the lifecycle theory of dividends and the catering theory of dividends. We also examine the propensity of firms to pay dividends and/or activate a stock buyback program. Univariate analysis reveals a positive association between a firm’s maturity and its likelihood to pay dividends. Logistic regression finds a positive relation between payouts and retained earnings to total assets. Foreign institutional investors are less likely to hold dividend-paying stocks than domestic institutional investors. The analysis finds no support for the catering theory of dividends. After controlling for stock ownership, our evidence is consistent with the lifecycle theory of dividends, which states that more mature firms are associated with dividends. It also supports the transaction cost hypothesis claiming that foreign investors face additional administrative costs when holding dividend-paying stocks.
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| 9. |
- Bakera, H. Kent, et al.
(författare)
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Payout policy in industrial and financial firms
- 2018
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Ingår i: Global Finance Journal. - : JAI PRESS INC. - 1044-0283 .- 1873-5665. ; 37, s. 138-151
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Tidskriftsartikel (refereegranskat)abstract
- Using a sample of Swedish publicly listed firms between 1970 and 2013, we examine whether payout policy differs between industrial and financial firms. Specifically, we investigate whether payouts and their composition (primarily dividends and stock repurchases) differ between firms. We find that dividends are the major vehicle in distributing earnings to shareholders and also that payouts are more frequent for financial than industrial firms. Stock repurchases have not replaced dividends in Sweden. The total payout ratio, including dividends, stock repurchases, and other forms of cash distributions to shareholders relative to earnings are roughly the same for industrial and financial firms. Financial firms are more reluctant to cut or omit dividends than industrial firms. Our examination of dividend smoothing shows that although both industrial and financial firms smooth dividends, they tend to smooth less during the last two decades as indicated by an increase in the speed of adjustment.
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| 10. |
- Burnie, David A., et al.
(författare)
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Far tail or extreme day returns, mutual fund cash flows and investment behaviour
- 2010
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Ingår i: Applied Financial Economics. - London : Routledge. - 0960-3107 .- 1466-4305. ; 20:16, s. 1241-1256
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Tidskriftsartikel (refereegranskat)abstract
- This study examines the frequency of extreme trading days and investment behaviour in Sweden. We show that the frequency, as well as the magnitude of extreme trading days has increased over time. We also show that the frequency of extreme trading days in a year is positively correlated to the frequency the preceding year. Furthermore, we show that aggregate cash flows into equity and bond funds are unrelated to risk measured by standard deviation of return. Our findings show that investors, individuals as well as corporations, use simple passive investment strategies and hence, do not believe in market timing or wish to risk capital on capturing far tail or black swan type returns.
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