Hardjo Koerniadi | Auckland University of Technology (original) (raw)

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Papers by Hardjo Koerniadi

Research paper thumbnail of The role of internal and external certification mechanisms in seasoned equity offerings

Journal of Multinational Financial Management, Apr 10, 2015

Research paper thumbnail of Accelerated Equity Offers: The Role of Internal and External Certification Mechanisms

SSRN Electronic Journal, 2000

ABSTRACT We examine the role of internal and external certification mechanisms in the issuance ch... more ABSTRACT We examine the role of internal and external certification mechanisms in the issuance choice of SEOs between accelerated offers and fully marketed offers. Our empirical work supports the view that a firm’s internal corporate governance structure and audit fee are associated with the issuance choice between accelerated and fully marketed offers. Furthermore, we find that after controlling for the self-selection problem, firms paying higher audit fee incur lower flotation costs as measured by gross spreads. Finally, we find a significant positive association between audit fee and the net proceeds raised in SEOs.

Research paper thumbnail of Corporate Governance and Seasoned Equity Offerings: Offer Methods and Flotation Costs

SSRN Electronic Journal, 2000

ABSTRACT In this paper, we examine whether there is a relationship between the internal corporate... more ABSTRACT In this paper, we examine whether there is a relationship between the internal corporate governance of a firm and the method by which seasoned equity offerings are made. Extant research posits the view that firms offering equity securities via shelf offerings suffer from an under-certification problem. This is due to the fact that equity issued under shelf offerings is often offered at short notice giving investment bankers inadequate time to conduct due diligence. The problem of under-certification is further exacerbated in the now widely prevalent accelerated offers method of issuing SEOs. We suggest that firms may self-certify their quality by pursuing high standards of internal corporate governance. Our empirical evidence supports this view. We also examine whether corporate governance quality influences the issuer’s decision to use the accelerated offers method of issuing SEOs. Our empirical evidence supports the view that well-governed firms tend to issue accelerated offers as compared to poorly governed firms. Furthermore, we also examine whether flotation costs are influenced by a firm’s internal corporate governance. We find that flotation costs are significantly lower for firms with good governance after controlling for other determinants of flotation costs. We find that audit fee and the use of big4 auditor serve as alternate certification devices. Of the different components of internal corporate governance studied, board composition and effectiveness is most robust to the inclusion of alternate certification devices. It appears that good governance facilitates speedy capital raising and reduces flotation costs. Our findings are potentially useful to corporate managers, investment bankers and regulators.

Research paper thumbnail of Natural Disasters – Blessings in Disguise?

SSRN Electronic Journal, 2000

Research paper thumbnail of Cross-Border Mergers and Acquisitions and Default Risk

SSRN Electronic Journal, 2000

ABSTRACT Using a cross-country sample of mergers and acquisitions, we examine the role of cultura... more ABSTRACT Using a cross-country sample of mergers and acquisitions, we examine the role of cultural, institutional, geographic and managerial factors on post-merger default risk. Our results are consistent with the asymmetric hypothesis that managers take advantage of the overvaluation and volatility of their firm stock prices. We also find that geographic distance and industrial diversification play significant roles in affecting post-merger default risk. We find limited evidence indicating the relevance of institutional quality and culture on default risk.

Research paper thumbnail of Corporate Governance and the Variability of Stock Returns: Evidence from New Zealand Companies

SSRN Electronic Journal, 2000

Research paper thumbnail of Earnings Management and the Market Performance of Stock Dividend Issuing Firms: Evidence from New Zealand

Research paper thumbnail of Earnings management and the market performance of stock dividend issuing firms : NZ evidence

Accounting Research Journal, 2008

Research paper thumbnail of Accrual or Cash Flow Anomaly? Evidence from New Zealand

Accounting Research Journal, 2007

... arise from earnings management. Kothari, Sabino and Zach (2005) and Kraft, Leone and Wasley (... more ... arise from earnings management. Kothari, Sabino and Zach (2005) and Kraft, Leone and Wasley (2005), however, find that prior studies on the accrual anomaly suffer from sample selection bias. Kraft et al. (2005) show that ...

Research paper thumbnail of Accruals and Cash Flows Anomalies: Evidence from the New Zealand Stock Market

Research paper thumbnail of The role of accruals as a signal in earnings and dividend announcements : New Zealand evidence

Journal of Applied Accounting Research, 2011

Research paper thumbnail of The role of internal and external certification mechanisms in seasoned equity offerings

Journal of Multinational Financial Management, Apr 10, 2015

Research paper thumbnail of Accelerated Equity Offers: The Role of Internal and External Certification Mechanisms

SSRN Electronic Journal, 2000

ABSTRACT We examine the role of internal and external certification mechanisms in the issuance ch... more ABSTRACT We examine the role of internal and external certification mechanisms in the issuance choice of SEOs between accelerated offers and fully marketed offers. Our empirical work supports the view that a firm’s internal corporate governance structure and audit fee are associated with the issuance choice between accelerated and fully marketed offers. Furthermore, we find that after controlling for the self-selection problem, firms paying higher audit fee incur lower flotation costs as measured by gross spreads. Finally, we find a significant positive association between audit fee and the net proceeds raised in SEOs.

Research paper thumbnail of Corporate Governance and Seasoned Equity Offerings: Offer Methods and Flotation Costs

SSRN Electronic Journal, 2000

ABSTRACT In this paper, we examine whether there is a relationship between the internal corporate... more ABSTRACT In this paper, we examine whether there is a relationship between the internal corporate governance of a firm and the method by which seasoned equity offerings are made. Extant research posits the view that firms offering equity securities via shelf offerings suffer from an under-certification problem. This is due to the fact that equity issued under shelf offerings is often offered at short notice giving investment bankers inadequate time to conduct due diligence. The problem of under-certification is further exacerbated in the now widely prevalent accelerated offers method of issuing SEOs. We suggest that firms may self-certify their quality by pursuing high standards of internal corporate governance. Our empirical evidence supports this view. We also examine whether corporate governance quality influences the issuer’s decision to use the accelerated offers method of issuing SEOs. Our empirical evidence supports the view that well-governed firms tend to issue accelerated offers as compared to poorly governed firms. Furthermore, we also examine whether flotation costs are influenced by a firm’s internal corporate governance. We find that flotation costs are significantly lower for firms with good governance after controlling for other determinants of flotation costs. We find that audit fee and the use of big4 auditor serve as alternate certification devices. Of the different components of internal corporate governance studied, board composition and effectiveness is most robust to the inclusion of alternate certification devices. It appears that good governance facilitates speedy capital raising and reduces flotation costs. Our findings are potentially useful to corporate managers, investment bankers and regulators.

Research paper thumbnail of Natural Disasters – Blessings in Disguise?

SSRN Electronic Journal, 2000

Research paper thumbnail of Cross-Border Mergers and Acquisitions and Default Risk

SSRN Electronic Journal, 2000

ABSTRACT Using a cross-country sample of mergers and acquisitions, we examine the role of cultura... more ABSTRACT Using a cross-country sample of mergers and acquisitions, we examine the role of cultural, institutional, geographic and managerial factors on post-merger default risk. Our results are consistent with the asymmetric hypothesis that managers take advantage of the overvaluation and volatility of their firm stock prices. We also find that geographic distance and industrial diversification play significant roles in affecting post-merger default risk. We find limited evidence indicating the relevance of institutional quality and culture on default risk.

Research paper thumbnail of Corporate Governance and the Variability of Stock Returns: Evidence from New Zealand Companies

SSRN Electronic Journal, 2000

Research paper thumbnail of Earnings Management and the Market Performance of Stock Dividend Issuing Firms: Evidence from New Zealand

Research paper thumbnail of Earnings management and the market performance of stock dividend issuing firms : NZ evidence

Accounting Research Journal, 2008

Research paper thumbnail of Accrual or Cash Flow Anomaly? Evidence from New Zealand

Accounting Research Journal, 2007

... arise from earnings management. Kothari, Sabino and Zach (2005) and Kraft, Leone and Wasley (... more ... arise from earnings management. Kothari, Sabino and Zach (2005) and Kraft, Leone and Wasley (2005), however, find that prior studies on the accrual anomaly suffer from sample selection bias. Kraft et al. (2005) show that ...

Research paper thumbnail of Accruals and Cash Flows Anomalies: Evidence from the New Zealand Stock Market

Research paper thumbnail of The role of accruals as a signal in earnings and dividend announcements : New Zealand evidence

Journal of Applied Accounting Research, 2011