The total global forest area is decreasing significantly, yet stories of successful large-scale forest restoration are still scarce. In the 1980s, when properly designed concepts and methodologies were absent, state-led, large-scale restoration projects in lower-income countries (LICs) in Asia were already successful. These then LICs—South Korea, Vietnam, and China—experienced dramatic forest land use changes driven by different socioeconomic and political developments, from deforestation and forest degradation to reforestation and ecological restoration. This study examines the institutional settings of each country’s restoration programs, focusing on the inputs of the external factors, their effects on the relevant action arena, and their payment mechanisms. By conducting critical comparisons between three country cases, we found that the ability of nations that had implemented reforestation programs to restore their forests was often influenced by external variables, which included biophysical conditions, local community attributes, and local, state, and federal rules. The result of this research provides practical implications and contributes to the body of literature comparing restoration cases from Asian countries, which have rarely been investigated.
We find that firms with more capable managers exhibit a slower adjustment speed of capital structure toward the target level. This result is stronger for younger and smaller firms. These can be explained by capable managers' avoidance of transaction costs and their decision to focus on core activities rather than on capital structure adjustment. Lastly, the negative relation between firm value and the deviation from target capital structure is weaker for firms with competent managers, implying that the stock market does not discount the value of firms deviating from the target capital structure if they are managed by competent managers.
Convertible instruments are financial instruments embedded with conversion rights such as convertible bonds or convertible preferred stocks. Under the Korean International Financial Reporting Standards (K-IFRS), the embedded conversion rights with certain conditions (i.e., a refixing clause) are recognized as derivative liabilities and are recognized at fair value in issuer’s financial statements. Since the value of convertible rights varies with the underlying stock value, an increase in the issuers’ stock price causes the issuers of convertible instruments to announce large derivative valuation losses. Using disclosures under the title of ‘Loss from Derivatives Trading’ from the KOREA EXCHANGE (KRX) during January 2016 through December 2019, this study examines market reactions to the disclosure of valuation losses on conversion rights embedded in convertible instruments. We find the following results. First, abnormal stock returns on the loss announcement date are significantly negative. Second, abnormal trading volumes peak on the loss announcement date. Third, abnormal stock returns persist in the long-term. Collectively, our findings suggest that investors perceive the loss disclosures as negative news, but fail to impound the information into issuer’s stock prices effectively. This study emphasizes the importance of education on convertible instruments and improvement in the disclosure requirements on valuation losses of conversion rights embedded in convertible instruments by providing evidence that investors face difficulty in understanding the related disclosures.
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