When government co-invests in mining projects: An empirical study of Canadian Flow-Through Shares

Axiak, Monica J

When government co-invests in mining projects: An empirical study of Canadian Flow-Through Shares

Axiak, Monica J

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Publication Type:: Thesis
Issue Date:: 2023

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Field	Value	Language
dc.contributor.author	Axiak, Monica J
dc.date.accessioned	2024-04-16T02:41:03Z
dc.date.available	2024-04-16T02:41:03Z
dc.date.issued	2023
dc.identifier.uri	http://hdl.handle.net/10453/177957
dc.description	University of Technology Sydney. Faculty of Business.	en_US.UTF-8
dc.description.abstract	This thesis conducts an empirical investigation of the Canadian Flow-Through Shares (FTS) scheme. FTS are a type of common share unique to Canada which entitle the initial purchaser to a full tax deduction equal to the amount invested in FTS, and various other tax benefits depending on their tax status and residency. This thesis examines a number of research questions associated with FTS, including: the characteristics of FTS issuers; the determinants of the FTS issuance premium; the share price reaction to the FTS issue announcement; and FTS audit pricing implications. The thesis seeks to address the limited empirical research published on different aspects of FTS to date, since the issuance of FTS is becoming increasingly widespread amongst eligible firms which are mostly mineral exploration entities (MEEs), a unique sample of venture firms sharing a similar inherent risk profile and business objectives. This thesis finds investors prefer other types of SEO deals compared to FTS, which can be used to fund a wider range of activities including offshore exploration. When participating in FTS deals investors are willing to pay a greater premium to access the tax deduction format of tax benefit (rather than tax credits). Davidson & Company is identified as the audit market leader servicing Canadian MEEs and FTS issuing MEEs are found to pay lower audit fees than their non-FTS issuing counterparts. Evidence of industry leader and Big 4 premiums is identified amongst FTS issuing audit clients.	en_US.UTF-8
dc.format	Thesis (PhD)
dc.language.iso	en_US	en_US.UTF-8
dc.relation	https://opus.lib.uts.edu.au/bitstream/10453/177957/1/thesis.pdf
dc.rights	info:eu-repo/semantics/openAccess
dc.rights	The author owns the copyright in this thesis including all reproduction and reuse rights for the work. The work may not be altered without the permission of the copyright owner. Attribution is essential when quoting or paraphrasing from this thesis.
dc.rights	© 2023 Monica J. Axiak
dc.rights	au.edu.uts.lib/cph
dc.title	When government co-invests in mining projects: An empirical study of Canadian Flow-Through Shares	en_US.UTF-8
dc.type	Thesis
utslib.copyright.status	open_access	*

Abstract:

This thesis conducts an empirical investigation of the Canadian Flow-Through Shares (FTS) scheme. FTS are a type of common share unique to Canada which entitle the initial purchaser to a full tax deduction equal to the amount invested in FTS, and various other tax benefits depending on their tax status and residency. This thesis examines a number of research questions associated with FTS, including: the characteristics of FTS issuers; the determinants of the FTS issuance premium; the share price reaction to the FTS issue announcement; and FTS audit pricing implications. The thesis seeks to address the limited empirical research published on different aspects of FTS to date, since the issuance of FTS is becoming increasingly widespread amongst eligible firms which are mostly mineral exploration entities (MEEs), a unique sample of venture firms sharing a similar inherent risk profile and business objectives. This thesis finds investors prefer other types of SEO deals compared to FTS, which can be used to fund a wider range of activities including offshore exploration. When participating in FTS deals investors are willing to pay a greater premium to access the tax deduction format of tax benefit (rather than tax credits). Davidson & Company is identified as the audit market leader servicing Canadian MEEs and FTS issuing MEEs are found to pay lower audit fees than their non-FTS issuing counterparts. Evidence of industry leader and Big 4 premiums is identified amongst FTS issuing audit clients.

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http://hdl.handle.net/10453/177957