Falling equity prices make cross-shareholdings less attractive: in general, they are being sold—albeit slowly.
We latched on to the programme of popular capitalism and saw there was a close relationship between the sale of council homes, personal equity plans and employee shareholding.
We hypothesize and find supporting evidence that the likelihood of having voluntary disclosure of IC self-assessment with an auditor's attestation is positively related to future equity refinancing, mutual-fund shareholding, and whether the firm is controlled by the government, especially the central government.
b. "Shareholders' equity".
Gauging generosity Reprints Related items Insurance: Reinsurance treatyAug 3rd 2000Granted, the main culprits for Munich Re's current woes are its exposure to equity markets, partly through its shareholdings in other insurers and banks, not its diversification.
We hypothesize and find supporting evidence that a firm with the government, especially the central government, as its largest shareholder, with more mutual fund shareholding, and with an equity refinancing plan in the near future, is more likely to disclose an IC self-assessment report and to attain an auditor's attestation on the report.
According to the authorities, LVMH used a type of opaque derivatives known as equity swaps to quietly build its shareholding in Hermès, below the radar of investors and regulators, even as it disguised the growing stake in its financial statements.
The strictures do not apply to debt analysts nor do they address the firm's shareholdings, say through a private equity fund or a merchant banking operation.
But it was bad for the companies, because the executives had less incentive to behave like shareholders.At the peak of the bull market, the boards of some new-economy companies were giving away more than 7% of the equity a year, heavily diluting the original shareholdings.
