For more information on the event, you can contact Professor Nafis Alam or call +603 8924 8279.
The Centre for Islamic Business and Finance Research (CIBFR), UNMC is pleased to invite you to an academic paper presentation titled 'Agency Theory and Islamic Merger and Acquisition - The Case of Earn out Agreements'. This paper investigates agency issues and the Islamic sharia compliancy of earnout agreements. Contingent payment in merger and acquisitions not only violates Islamic sharia but also results in several agency issues during the post-closing period. The empirical results show that target managers who stay in the office after the deal closing significantly manage earnings upward through cutting discretionary expenses. Although earnout agreements help bridge the valuation gap between buyers and sellers, they create an incentive for managers to participate in long-term value-destroying behavior. The author proposes a sharia-appealing earnout agreement that might also help mitigate some agency concerns inherent in conventional earnout contracts. Details: Date: 27 November 2015, FridayTime: 10:30 to 12:00Venue: EA51 The University of Nottingham Malaysia Campus Jalan Broga 43500 Semenyih Selangor Darul Ehsan
About the speaker: Professor Dr M. Kabir Hassan is Professor of Finance and Hibernia Professor of Economics and Finance in the Department of Economics and Finance. Prof. Kabir received his BA in Economics and Mathematics from Gustavus Adolphus College, Minnesota, USA, and M.A. in Economics and PhD in Finance from the University of Nebraska-Lincoln, USA respectively.
Prof. Kabir is a financial economist with consulting, research and teaching experiences in development finance, money and capital markets, Islamic finance, corporate finance, investments, monetary economics, macroeconomics and international trade and finance. He has done consulting work for the World Bank, International Monetary Fund, African Development Bank, Transparency International-Bangladesh (TIB), Islamic Development Bank, Government of Turkey and many private organisations.
University of Nottingham Malaysia Jalan Broga, 43500 Semenyih Selangor Darul EhsanMalaysia
telephone: +6 (03) 8924 8000 fax: +6 (03) 8924 8001
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