An Examination of Preference Share Issuance by Companies Listed on the Malta Stock Exchange
Journal Title: Journal of Corporate Governance, Insurance, and Risk Management - Year 2024, Vol 11, Issue 1
Abstract
This investigation addresses the issuance of preference shares by companies listed on the Malta Stock Exchange (MSE), identifying key determinants and obstacles associated with these initiatives. Semi-structured interviews were conducted with 27 stakeholders, including representatives from 23 MSE-listed companies (MLCs), one MSE official, two stockbrokers, and an advisor from a leading global accounting firm. An evaluation of the financial distress faced by issuers prior to the issuance of preference shares was also undertaken. Despite the establishment of the MSE in 1992, preference shares have been issued by only two listed companies, indicating their minimal utilization as financial instruments within the Maltese market. The findings reveal that preference shares are primarily issued to meet financing needs, support corporate expansion, prevent control dilution, capitalize on favorable market conditions, maintain balanced capital structures, and enhance debt capacity. However, several barriers hinder the issuance of preference shares, including limitations inherent to the Maltese capital market, low investor interest, perceived complexity, and a general lack of understanding regarding this hybrid financial instrument. The study underscores the necessity for improved educational efforts concerning preference shares and elucidates the distinctive characteristics of the local market.
Authors and Affiliations
Lauren Ellul, Bernice Manché, Peter J. Baldacchino, Norbert Tabone, Simon Grima
Keywords
Related Articles
- EP ID EP738943
- DOI https://doi.org/10.56578/jcgirm110101
- Views 38
- Downloads 1
Impact of Accounting Information Systems, Work Motivation, and Internal Controls on Employee Performance: A Study at PT. Bank Danamon, Ambon Branch
This study aimed to evaluate the influence of accounting information systems (AIS), employee intrinsic motivation, and internal controls on the productivity of employees at PT. Bank Danamon's Ambon Branch. Primary data c...
Citizen Satisfaction and Influential Factors of E-Government Services During the COVID-19 Crisis: A Turkish Case Study
This study aimed to evaluate citizen satisfaction with e-Government (eGov) services in Turkey amid the COVID-19 pandemic and identify the key factors influencing satisfaction levels. Data were collected from a random sam...
Exploring the Determinants of Managerial Vulnerability to Manipulation: A Qualitative Investigation
Managerial proficiency, a multifaceted construct, encompasses numerous attributes and is thought to be augmented by experience. Despite the inherent complexities of management roles, susceptibility to manipulation poses...
The Role of Shared Strategic Values in Achieving Sustainable Success in Global Logistics Enterprises
Strategic values play a pivotal role in the long-term success of logistics enterprises, influencing interactions with customers, employees, and stakeholders, and driving sustainable outcomes. In the context of the global...
The Impact of Managerial Sustainability and Ethics on Corporate Success
This investigation underscores the pivotal role of managerial sustainability and ethical practices in enhancing corporate success. Utilizing a comprehensive approach, the study amalgamates, interprets, and exemplifies pe...