While positive, long-run abnormal returns following share repurchase announcements are substantially lower when CEOs are overconfident. This effect is particularly strong for (i) difficult to value firms, such as small, young, non-dividend paying, distressed, and having negative earnings firms, (ii) firms with poor past stock return performance and high book-to-market ratio, indicators of possible overreaction to bad news, and (iii) financially constrained firms. Overall, these results are consistent with the mispricing hypothesis as a motive for repurchases and as an explanation for the buyback anomaly. Additionally, irrespective of the CEO’s level of confidence, abnormal returns are considerably larger for financially constrained firms, implying their managers require larger undervaluation due to the higher cost of capital.
Dyrnes, Sverre & Garcia de Olalla Lopez, Ignacio (2023)
Verdsettelse – en introduksjon og oversikt over sentrale deler av verdsettelsesprosessen
[Article in business/trade/industry journal]. Praktisk økonomi & finans, 39(3), s. 189- 209. Doi: 10.18261/pof.39.3
Verdsettelse gjennomføres særlig i forbindelse med oppkjøp, fisjoner/fusjoner, utløsning av aksjonærer, emisjoner, generasjonsskifter, eiendomstakseringer, bekreftelse av virkelig verdi i årsregnskaper m.m. Verdsettelse i disse sammenhengene kan ofte være omfattende og kompliserte prosesser hvor en rekke regnskapsmessige, økonomiske og juridiske problemstillinger må drøftes og løses. I denne artikkelen lar vi mange av de mer detaljerte problemstillingene ligge til fordel for oversikt.
Garcia de Olalla Lopez, Ignacio & Andvik, Christian (2023)
Finansiell Analyse og Verdsettelse
[Textbook]. Universitetsforlaget.
Garcia de Olalla Lopez, Ignacio & Andvik, Christian (2023)
Financial Analysis and Valuation
[Textbook]. Universitetsforlaget.
Garcia de Olalla Lopez, Ignacio & Andvik, Christian (2023)
Financial Analysis and Valuation
[Textbook]. Universitetsforlaget.
Garcia de Olalla Lopez, Ignacio & Andvik, Christian (2023)
Finansiell analyse og verdsettelse
[Textbook]. Universitetsforlaget.
Garcia de Olalla Lopez, Ignacio (2017)
The Effect of Trust on Taxation Arbitrage through Dividend Payments
[Academic lecture]. Scandinavian Accounting Research Conference.
Garcia de Olalla Lopez, Ignacio (2016)
The Effect of Trust on Taxation Arbitrage through Dividend Payments
[Academic lecture]. European Finance Association annual meeting.
Garcia de Olalla Lopez, Ignacio (2014)
Explanatory Factors of the Capital Structure in Public and Private Firms
[Academic lecture]. World Finance and Banking Symposium 2014.
Garcia de Olalla Lopez, Ignacio (2014)
The Effect of Trust on Taxation Arbitrage through Dividend Payments
[Academic lecture]. American Accounting Association Annual Meeting.
The dual income tax system, common in the Nordic countries from the early 90s, has been shown to provide a taxation arbitrage opportunity for medium and high income self-employed individuals, and for active owners of closely-held corporations. These individuals can reclassify their wages as capital income and distribute them in form of dividends, thereby minimizing tax paid on labor. In this paper, I show that high levels of trust in a region had a moderating effect on the dividend payout of Norwegian closely-held firms located in that region, in the period when dividends were exempt from taxes. The effect disappears on data after a taxation reform in 2006. To achieve these results, I use a unique database of high quality accounting information for Norwegian private companies. I argue that high levels of trust cause firm owners to be less inclined to engage in tax-arbitrage behaviors because they trust their tax money is being put to proper use. I also suggest that in communities where there are higher levels of trust and sociability, i.e., tighter communities, deviations from what is normative considered good citizenship are costlier for the deviant than in communities with lower levels of trust and sociability.
Garcia de Olalla Lopez, Ignacio (2013)
Social Capital and Financial Decisions in Norwegian Private Firms