Journal articles on the topic 'Seasoned equity offers'

We find that the degree of expected idiosyncratic skewness in seasoned equity issuers’ stock returns is an important determinant of flotation costs and subsequent abnormal stock performance. High skewness issuers incur significantly greater offer price discounts, particularly when institutional share allocation is largest, pay higher gross underwriting spreads, and exhibit poorer stock performance in the three years after issuance, all compared to low skewness issuers. These results suggest that skewness-induced overpricing increases the flotation costs of seasoned equity offers and leads to poor subsequent stock performance. Received November 18, 2014; accepted December 17, 2015 by Editor Paolo Fulghieri.

AbstractThis study examines the relations between earnings management by firms offering seasoned equity issues and the pricing of their offers. We hypothesize that seasoned equity offering (SEO) firms that employ aggressive accounting decisions also more aggressively push up their offer prices, thereby leading to a decrease in the degree of underpricing. Consistent with our prediction (the issuer's greed hypothesis), evidence indicates that SEO firms that make opportunistic accounting decisions issue new shares at inflated prices. Our findings remain robust after controlling for other determinants of SEO underpricing and the possible endogeneity of pricing and earnings management.

While prior literature examines the role of auditors in the pricing of initial public offerings, little is known about the effect of auditor changes on the pricing of seasoned offers. Our examination of seasoned equity offerings shows that companies switching auditors prior to the offerings underprice their offers more than do companies without changes. While we provide evidence of issuers' opportunistic accounting decisions that are consistent with their opinion-shopping behavior, the positive association between underpricing and auditor changes suggests that switchers bear a net cost compared to non-switchers. From a practical standpoint, our findings alert a company considering a change of its auditor prior to a new equity issue.

This paper examines the valuation effect of Rule 144A equity offers on issuing firms common stocks for the period 1970 to 2010. Similar to findings for seasoned equity offerings, I find a statistically significant cumulative abnormal return of -3.07 percent over the three-day issue period for the overall sample of 160 Rule 144A equity offers. Further, I find that issuing firms exhibit significant long-run under-performance in stock returns over the three years after the issuance of Rule 144A equity offers. The results are consistent with the under-reaction hypothesis.

Purpose – The purpose of this paper is to empirically test whether stock liquidity and investor sentiment have interactive effects on seasoned equity offers (SEOs) price discounts in Australia. Design/methodology/approach – The authors focus on the implicit cost borne by firms when issuing seasoned equity capital. This cost is measured as the relative difference between the SEO offer price and the last close price prior to the announcement of the issue. The primary measure of investor sentiment is a composite index constructed similar to that in Baker and Wurgler (2007). Findings – The results show that, in periods of deteriorating investor sentiment, the increase in SEO price discounts for firms with illiquid stocks is larger than the corresponding increase for firms with liquid stocks. This suggests that, as sentiment wanes, investors become even more concerned about illiquidity, leading to even greater required compensation for holding illiquid assets. The authors find that information asymmetry is positively related to SEO price discounts but this relation is not affected by changing investor sentiment. Research limitations/implications – Collectively, the empirical results provide support for the argument that price discount of SEOs represents compensation to investors for bearing costs associated with illiquidity. The results also lend some support to the behavioural argument that pricing of equity offers is dependent upon investor sentiment, particularly for firms with illiquid stocks. Practical implications – The ability for firms to raise capital in a cost-effective manner is critical for firm growth and stability. Investors require compensation for bearing the costs of illiquidity of their investments in equity. Accordingly, firms need to be conscious of their stocks’ existing liquidity and its influence on the cost of raising additional capital which, in turn, affects their operational stability and investment opportunities. Social implications – Ultimately, the implications of this study will assist firms in capital-raising decisions, investors in making portfolio investment decisions, and investment banks in setting offer prices on equity issues. Originality/value – To the best of the authors’ knowledge, this is the first study to examine the interaction between investor sentiment and SEO price discounts in Australia.

Purpose The purpose of this paper is to analyse the role of ownership characteristics in a firm’s choice of alternative seasoned equity offering (SEO) methods, offer price discounts, and market reactions to such announcements within the UK setting. Design/methodology/approach The study examines 697 SEO events of firms traded in the UK during the period 1998 to 2012 using multivariate and binomial logistic regression models. Ordinary least square models are also used to examine how ownership variables affect offer price discounts and stock market performance during the announcement of such corporate events. Findings The authors show that placings and open offers (OOs) are the preferred methods for issuing equity by firms with higher managerial ownership. Thus, the evidence strongly supports the prediction of the entrenched management hypothesis. Moreover, the probability of choosing a combination of placings and OOs is also found to be significantly related to issue size, offer discount, leverage, and previous stock performance. The results show that pre-issue market conditions have a significant effect on the choice of issue method with rights offers (ROs) and the combination of placings and OOs primarily utilised by firms for issuing equity during hot market periods. Originality/value Unlike prior SEOs’ studies in the UK that predominantly concentrate on the use of ROs and placings, this study examines, for the first time, the link between OOs and the combination of placings and OOs with ownership concentration. The authors also investigate how offer price discounts are related to the firms’ ownership structure, various company micro-characteristics and the wider market conditions.

The purpose of this study is to examine the impacts of alternative flotation methods on price performance of seasoned equity offerings, and to compare the competing hypotheses supported by asymmetric information theory and agency theory. Based on 385 sample issues which were listed in Taiwan Stock Exchange from 1996 to 2006, we find that the bookbuilding flotation method demonstrates significant positive abnormal returns for issuing firms, whereas the fixed-price method exhibits negative results. The empirical findings support the agency theory in the sense that the bookbuilding procedure offers a mechanism to strengthen the external monitoring provided by blockholders, which can subsequently reduce the agency cost and thus increase the share price. Further cross sectional analysis confirms this argument. The result of the study implies that the governments should take effective actions to help regulate agency problems in emerging markets such as Taiwan.

PurposeThis paper seeks to examine the potential for regulation to reduce information asymmetries between firm insiders and outside investors.Design/methodology/approachExtensive prior research has established that there are substantial effects of information asymmetry in seasoned equity offers (SEOs). The paper tests for a mitigating effect of regulation on such information asymmetries by examining differences in long‐run operating performance, changes in that performance, and announcement‐period stock returns between unregulated industrial firms and regulated utilities that issue seasoned equity. The authors also segment the samples by firm size, since smaller firms are likely to have greater asymmetries.FindingsConsistent with regulated utility firms having lower levels of information asymmetry, they have superior changes in abnormal operating performance than industrial firms pre‐ to post‐issue and their announcement period returns are significantly less negative. These findings are most pronounced for the smallest firms, firms likely to have the greatest information asymmetries and where regulation could have its greatest effect.Research limitations/implicationsThe paper does not examine costs of regulation. Thus, future research could seek to measure the cost/benefit trade‐off of regulation in reducing information asymmetry. Also, future research could examine cross‐sectional differences between different industries and regulated utilities.Practical implicationsRegulation reduces information asymmetry. Thus, regulation or mandated disclosure may be appropriate in industries/markets where information asymmetry is severe.Originality/valueThis paper is the first to compare the operating performance of regulated and unregulated SEO firms.

The Global Jukebox (GJ) is an ambitious project initiated by the Association for Cultural Equity at New York’s Hunter College. Its main mission is to make available the extensive audio field recordings, pictures, and films studied by the legendary ethnomusicologist Alan Lomax and his colleagues accessible to the public for study. In the current beta version, the Global Jukebox has numerous navigation issues that could challenge even the seasoned web user. The methodological basis of data collection and analysis also deservers further explication. However, despite these weaknesses, there is much to be said for what GJ offers users. Whether spending hours moving around regions song by song or exploring familial cultural roots, users will be inspired to learn about the respective cultures and musical forms, thus fulfilling GJ’s education mission.

Purpose The purpose of this paper is to determine if hedge funds perform poorly as claimed by more recent research. The authors find hedge funds perform well from 2001 to 2013 when compared to sample of firms known to experience superior performance, namely, a sample of seasoned equity offerings (SEOs). Design/methodology/approach This paper uses a portfolio approach in comparing the performance of hedge funds and SEO firms. Other comparisons involve a number of common methodologies used to compute and analyze short-run and long-run returns. Findings Contrary to a growing and prevalent belief, the paper offers evidence hedge funds as a whole have performed well for a recent 13-year period. This finding includes periods up to six years around SEO announcement months. Research limitations/implications This paper is limited to examining monthly returns for a portfolio of hedge funds. This limitation led to incorporating a portfolio approach. Practical implications The findings suggest that a portfolio of hedge funds are an important investment consideration. This consideration has practical implications because investing in a portfolio of hedge funds has become more available for all investors in recent years. Social implications Society can be enhanced as this paper helps future investors make optimal investment decisions. Originality/value This paper adds to the hedge fund research by being the first paper to compare the performance of hedge funds with that for firms undergoing an important corporate event. The findings are new and can impact investment decision making.

Purpose The purpose of this paper is to determine if hedge fund variables (HFVs) are associated with short-run daily buy and hold abnormal returns (BHARs) for a 30-day window around announcement dates for seasoned equity offerings (SEOs). Design/methodology/approach This paper utilizes the event study metric that computes BHARs. These BHARs are used in a regression model as dependent variables with HFVs and nonhedge fund variables (NFVs) as independent variables. For regression tests, standard errors are clustered at the month level. Findings This paper offers three new findings. First, HFVs are significantly associated with SEO BHARs. Second, HFVs are capable being associated with stronger statistical significance compared to NFVs. Third, not using HFVs can produce an omitted-variable bias. Research limitations/implications This paper does not have information on which individual hedge funds use a strategy during the month of the offering but only the proportion of hedge funds that do. A research implication is the proportion can be associated with SEO BHARs in a fashion predicted based on a long or short position. Practical implications Hedge funds can use trading strategies to capitalize on established patterns of price behavior. Social implications Hedge funds enjoy a trading advantage over smaller investors. Originality/value This paper is the first study to document the association between hedge fund stratagems and stock returns around a major corporate event. It shows researchers should consider institutional trading strategies when studying the market response to a major corporate event.

Between 2009 and 2014, 75% of seasoned equity offerings (SEOs) were announced and issued overnight, compared to 27% between 2000 and 2008. Overnight issuers obtain a higher SEO offer price because they experience more favorable pre-offer returns. Consistent with these favorable returns being due to the avoidance of pre-issue selling pressure, non-overnight issuers experience a 2.5% pre-issue stock-price decline that reverses within 7 days. This post-issue reversal is increasing in SEO offer size and bigger following large pre-issue price declines. In contrast, returns following overnight offerings are less positive and unrelated to SEO offer size or pre-issue returns.

AbstractUsing a sample of 2,281 seasoned equity offerings (SEOs) from 1995 to 2004, we show that the marketing of securities is important to issuers. The number of managing underwriters for an SEO is negatively related to the offer price discount, especially when the relative offer size is large and the stock return volatility is high. Larger investor networks of comanaging underwriters also lower offer price discounts. We argue that the evidence is supportive of the marketing hypothesis: The underwriters’ marketing efforts can lower the offer price discount by shifting up and flattening the demand curve of an SEO.

AbstractAn analysis of 4,814 SEOs during 1986–1999 indicates that the average offering ofnew shares is priced at a discount of 3% from the closing price on the day before the issue. Discounts have risen steadily over time, sharply increasing the indirect costs of issuing seasoned equity. There is evidence of increased clustering of offer prices at integers, and of greater importance in the analyst coverage provided by underwriters. Adjusting for other factors, we find that issues with integer offer prices, and underwriters with highly regarded analysts, are increasingly associated with larger discounts. The rise in discounts is consistent with an increased ability of investment bankers to extract rents from issuing firms.

Rights equity issue is one of the most common methods for subsequent equity issue in the Indian market. In rights offer, current shareholders are given short-term warrants on a pro-rata basis with the option to either purchase the new shares or sell the warrants in the market before expiration. Rights equity issue can be a potential solution to the adverse selection problem associated with capital issue and has comparatively low direct costs. In this paper, the authors analyse the operating performance of the BSE- listed manufacturing firms following rights equity issue and their linkages with firm-specific characteristics as hypothesized in the finance theory. They have selected 392 rights equity issues during the period 1991-2000 and used a methodology robust to the mean-reverting nature of accounting income. Consistent with empirical results for seasoned equity offerings in the US market, there is a statistically significant decline in the operating performance after the rights equity issue. This decline in performance is more severe for big firms, low market-to-book value firms, and firms with lower directors' holdings. Interestingly, foreign companies and companies belonging to small business groups do not show any declining trend. The authors find that the decline in perform- ance is due to the inefficiency in utilization of assets and not due to decrease in profit margins. Further, various proxies measuring market valuation also decline during the post-issue period after a run up in the pre-issue period. The results of the study suggest that over-investment hypothesis and agency models can better explain the decline in performance compared to asymmetric information hypothesis. The results also indicate that rights equity issues are not simple de-leveraging decisions. These findings have implications for several groups of capital market participants and the authors conclude with specific guidelines for them which are as follows: The investing public and analyst who are too optimistic about the issuers should consider deteriorating performance while arriving at the valuations. Investors should be vigilant about the ‘empire building’ implications of increased investments through rights issue. Optimistic managers should reassess the investment opportunities and have con-servative plans before approaching the market. The policy makers and regulators should come out with better regulatory framework to control and penalize the opportunistic managers.

The authors compare the post-issue stock and operating performance of rights issue versus public offer firms using Korean data. The authors find that the stock returns of rights issue firms are less negative than those of public offering firms during the three years subsequent to the seasoned equity offering. The authors further find that the profitability of rights offering firms is superior to those of public offering firms and that the ratio of sales to assets for rights issue firms is much higher over the post-issue period. The results substantiate Heinkel and Schwartz’s (1986) and Eckbo and Masulis’ (1992) theoretical models that posit firms with better quality tend to select the rights issue rather than public offer method when issuing seasoned equity.

Since the adoption of the SEC’s Rule 10b-21 in 1988, many researchers have been concerned over the effectiveness of short sales constraints in preventing manipulative trading in the derivatives market. We analyze whether options can be used as synthetic short sale instruments to manipulate stock prices before a seasoned equity offer. Due to the existence of strict short sales constraints in the equity market and market makers’ anticipation of manipulative trading, it would be very costly for a manipulator to drive stock prices down artificially either by short selling in the equity market or by using synthetic short sales in the options market. Using a sample of 237 firms that issued SEOs on the NYSE and had options listed on any U.S. options exchange from April 2002 to December 2004, we show that potential manipulators in the options market tend to use put options as a trading vehicle during the SEO’s pre-offer period. The results of our empirical tests support the predictions of our model.

The fact that publicly traded companies incur substantial costs when issuing new equity has been extensively documented in the empirical finance literature. In particular, numerous studies show that seasoned equity offerings (SEOs) tend to be priced significantly below prevailing market prices, thereby causing issuers to leave money on the table. Offer price discounting is an indirect flotation cost borne by pre-SEO shareholders that, according to extant theoretical and empirical research, arises due to asymmetric information. A heretofore unrelated literature argues that corporate multinationalism, i.e., establishing operations in one or more foreign countries, exacerbates the asymmetric information problem via greater costs to shareholders of monitoring the activities and performance of foreign subsidiaries. Motivated by these lines of thought, I investigate the relation between SEO discounting and corporate multinationalism. Using a sample of SEOs completed by U.S. firms between 1998 and 2016, I show that offer price discounting is significantly higher in offerings conducted by multinational firms relative to those conducted by purely domestic firms after controlling for known determinants of SEO discounts. This effect is stronger for multinational firms with foreign subsidiaries spread across a greater number of countries and weaker for multinationals that hire a high-reputation underwriter to lead the underwriting syndicate. These findings suggest that asymmetric information costs borne by seasoned equity issuers are increasing in the geographic scope of a firm’s operations, which can be mitigated by certification from a highly reputed lead underwriter.

Purpose The purpose of this paper is to investigate the monitoring role exerted by large institutional investors and their ability to restrict the earnings management practices conducted around seasoned equity offerings (SEOs). Design/methodology/approach The sample includes 130 French SEOs by non-regulated firms during 2004-2015. The authors used various cross-section, univariate and multivariate tests using several proxies for earnings management. They attempt to highlight that firms issuing SEOs are more able to manage earnings around SEOs owing to the predominance of large speculative institutional investors. Noteworthy, the monitoring role exerted by sophisticated institutional investors turns out to restrict the earnings management opportunities surrounding a SEOs event. Findings The results show that the issuing firms tend to manipulate earnings in an upward trend with respect to the year preceding the SEO offer. Thus, a special attention has been drawn on the fact that the issuing companies strive to prove their ability to manage earnings around SEOs in presence of large speculative institutional investors. Practical implications The results provide useful insights into the role different types of institutional investors play in terms of enhancing both governance and accounting information quality. Originality/value This paper adds to the literature questioning the evidence that institutional investor activism frequently engage in misleading earnings management around corporate events. The authors provide an alternative explanation for earnings management around SEOs in the French context.

Purpose The purpose of this paper is to contribute to the literature on seasoned equity offerings (SEOs) by examining the underpricing of European real estate corporations and identifying determinants explaining the phenomenon of setting the offer price at a discount at SEOs. Design/methodology/approach With a sample of 470 SEOs of European real estate investment trusts (REITs) and real estate operating companies (REOCs) from 2004 to 2018, multivariate regression models are applied to test for theories on the pricing of SEOs. This paper furthermore tests for differences in underpricing for REITs and REOCs as well as specialized and diversified property companies. Findings Significant underpricing of 3.06 percent is found, with REITs (1.90 percent) being statistically less underpriced than REOCs (5.08 percent). The findings support the market timing theory by showing that managers trying to time the equity market gain from lower underpricing. Furthermore, underwritten offerings are more underpriced to reduce the risk of the arranging bank, but top-tier underwriters are able to reduce offer price discounts by being more successful in attracting investors. The results cannot support the value uncertainty hypothesis, but they are in line with placement cost stories. In addition, specialized property companies are subject to lower underpricing. Practical implications An optimal issuance strategy taking into account timing, relative offer size and the choice of the underwriter can minimize the amount of “money left on the table” and therefore contribute to the lower cost of raising capital. Originality/value This is the first study to investigate SEO underpricing for European real estate corporations, pricing differences of REITs and REOCs in seasoned offerings and the effect of market timing on the pricing of SEOs.

This article studies the stock price reaction to Seasoned Equity Offerings (SEOs) through the right issue technique, for Italian listed companies in the period between 2007 and 2016. A few days before the starting date of the capital increase operation, investors are provided with a complete information set of the final characteristics of the equity offerings. The study investigates whether this further information is price sensitive. An event study analysis is performed around two price sensitive dates: the “announcement date” of the equity issue and the “communication date” of its final characteristics. It also focuses on the reasons underlying the offer and on the industry effect. The findings show a significant negative abnormal return at the communication date for the full sample and for companies collecting financial resources for “Corporate Finance Transaction”, for "Capital Adequacy" and for “Restructuring”. A negative market reaction for all sectors is observed as well. Eventually, the article examines the possible causes underlying the negative stock price reaction at the communication date. The results suggest that the dilutive effect is the main explanation to the stock price overreaction.

Although sport is regarded as a bastion of male hegemony, coed settings offer females the opportunity to compete alongside males. Coed environments, however, often include rule modifications that intend to facilitate female participation, which promote female inferiority assumptions. This study sought to critique modifications in the divisive world of coed flag football through the lens of benevolent sexism and the shifting standards model. Observational field notes and interview data gathered over a season revealed that the equity perceived to be legislated by rule modifications was overshadowed by negative outcomes, as modifications perpetuated stereotypes and reinforced an environment of male domination. We discuss the ubiquity of male superiority beliefs within coed flag football and implications of the unintended consequences of rule modifications.

The aim of this study is to investigate whether the adoption of convergent-International Financial Reporting Standards (IFRS) in China affects the audit fees of initial public offerings (IPO) firms. An empirical regression analysis using panel data for 1,094 nonfinancial IPOs (excluding season equity offers) of A-shares listed on the Shanghai and Shenzhen Stock Exchanges between 2003 and 2012 is adopted. The results reveal that audit fees increase following convergent-IFRS adoption in China and additionally suggest that convergent-IFRS adoption eases the intense price competition that previously existed in China’s audit market and thus has important policy implications for regulators. To the best of the authors’ knowledge, this study represents the first reported attempt to adopt the IPO setting to examine the effects of convergent-IFRS adoption on audit fees and fills the gap in literature. Using a setting of IPOs enables this paper to further exclude the influence of quasi-rents derived from low-balling after initial audit engagement when testing audit fees.

The fish community of the Mecoacan lagoon plays a main ecological and economic role in the coastal zone of the Gulf of Mexico since they are key indicators of the health of aquatic ecosystems, maintain a flow and ex-change of energy with other systems and offer various ecosystem services. Because of the scarcity of studies on the structure of the fish community, the objective of this study was to describe and analyze the abundance and diversity of ichthyofauna to determine the ecological interactions of fish with environmental variability. Three sampling campaigns were conducted (January, May and September 2018), in 10 sampling sites. In each site, the environmental variables and ichthyological collections were carried out with a trawl net. The abundance was calculated as density (ind/m2), biomass (g/m2), and average weight (g/ind). The different components of diversity were determined by Shannon y Weaver (H’n), Margalef (DMg) and Pielou (J ‘) index. The dominant species were identified through the Relative Importance Index. A total of 853 fish were collected grouped into 12 orders, 17 families, and 27 species with a total combined weight of 10.9 kg. The range of variation of density was 0.12-0.26 ind/m2, of biomass 1.17-3.4 g/m2 and average weight 9.21-15.42 g/ind. The highest abundance stands out in January and sites 2, 3 and 4. On a temporal scale, greater diversity and equity were observed in the rainy season, and on a spatial scale, site 9 stood out for presenting greater diversity and species richness. 10 species with ecological dominance were identified being Cathorops aguadulce, Diapterus rhombeus, and Opsanus beta those with the highest values for the relative importance index. The cluster analysis associated two groups of species and through an analysis of canonical correspondence the abundance of two groups of fish was correlated with the temperature and dissolved oxygen. Keywords: abundance, diversity, ichthyofauna, dominant species.

Hunger and inadequate nutrition are ongoing concerns in rural Malawi and are exemplified in traditional proverbs. Traditional proverbs and common expressions offer insight into commonly held truths across societies throughout sub-Saharan Africa. Strong oral traditions allow community beliefs embodied in proverbs to be passed down from generation to generation. In our qualitative study, we conducted 8 individual and 12 focus group interviews with a total of 83 participants across two districts in rural central Malawi with the aim of soliciting context-specific details on men and women’s knowledge, attitudes and practices related to nutrition, gender equality and women’s empowerment. Each interview began by asking participants to share common proverbs related to nutrition. Our qualitative analysis, informed by an indigenous-based theoretical framework that recognises and centres African indigenous knowledge production, yielded six themes: ‘a black dog enters the home’, ‘don’t stay with your hands hanging’, ‘a man is at the stomach’, ‘showers have fallen’, ‘we lack peace in our hearts’ and ‘the hunger season’. Traditional proverbs can provide insight into the underlying causes of hunger and malnutrition. Physicians, nurses and other allied health professionals around the world have a role to play in addressing hunger and malnutrition, which have been exacerbated by climate change. We have an ethical duty to educate ourselves and others, and change our behaviours, to mitigate the root causes of climate change, which are contributing to food insecurity and resultant poor health outcomes in countries like Malawi.

The domestication of choice broadening, special vegetable species offers new market possibilities in Hungary. The production of artichokes has good perspectives due to its high protein, vitamin and mineral contents and its wide usability. According to the literature, in Hungary it is worth examining the annual production technology, which has yet to be researched in our country. The basic aim of our work was to establish the annual production of artichoke in Hungary with scientific research.In the experiment, 5 Italian sorts (Valetta di Roma, Gobbo di Nizza, Violetto di Romagna, Violetto S. Francesino and Precoce di Romagna), 1 American sort (Green Globe) and 1 Egyptian sort (Balady) were used. For one half of the plants, we tried to bring on bud-production appearing in the first year only with early planting, while we used also a gibberellic acid hormone treatment for the other half.Only the sort Green Globe had yields in appropriate quantity (21.4 t/ha) and quality. The low yield and inequable quality of buds of the Italian and Egyptian sorts refers to the fact that these sorts are not applicable for annual production in Hungary. Although the gibberellic acid treatment resulted an earlier harvest, increased the equality of buds and increased the proportion of stems producing buds except for the sort Green Globe, overall it did not have a positive effect. The hormone treatment fastened the physiological processes of the plants, thereby it induced early insenescence and lignifying of the buds. The high temperatures during the bud-formation period largely increased the ratio of flabby, over-blowing buds, so the planting must be timed in the future that the harvest period is in early automn or late spring, early summer months.According to our results, globe artichoke can become a perspective culture by applying cold-resistant sorts with short growing seasons, which can be produced as annual crops without hormone treatment by the appropriate timing of bud-formation.

Dievturība (dievturi - "God keepers", "people who live in harmony with God") is a newly created religious tradition having appeared in the second part of the 1920s – 1930s, its most essential source includes materials of Latvian folklore and folk traditions. These are interpreted by construing a religious ethical theory and creating a religion which is alternative to Christianity, with its own doctrine and rituals, and the conception of Latvianness in culture and politics. Latvianness is the most essential concept of cultural politics to which all activities of the dievturi are subjected (exaltation, family celebrations (krustabas, vedības (marriage), bedības (funeral)) as well as seasonal rituals, cultural historical excursions, tidying and spiritual restoration of the sacral sites (sacred places, castle mounds), folklore activities, article publications in mass media, summer thematic camps in the countryside marked by intensive mastering and cultivation of history and culture, celebration of Latvian public holidays and the most important remembrance days. Contemporary dievturi groups are seeking for new ideas in order to develop and popularize their conceptions, which can partly be characterized as a cultural political programme for theoretical (doctrine) and practical (exaltations, ceremonies, seasonal rituals) realization of Latvianness and its components. Within this publication, creativity means the system of ideas and values that promotes the development and perspectives of dievturi groups as well as includes them into a wider cultural political environment thus performing a culture-creating job. A special attention is paid to the essential ideas and values guiding the creativity of contemporary Latvian dievturi groups, making ample use of storyteller habitus, thus intentionally allowing the domination of group participant discourse. The two main directions of dievturi group participant creativity are the development of their doctrine (teaching) and the ritual practice (exaltations). These directions allow to attract wide attention of the society and mass media, new participants and supporters, to influence the political and cultural processes in Latvia. An important part in the doctrinal reflections of the dievturi, especially in the ritual practice (exaltations), has always been taken by Latvian literature writings. A selective choice of these supplement the textual canon of the dievturi continuing the tradition in line with “the mood of Latvian folk songs” and attributing a more modern shape and world outlook concepts to dievturi undertakings. The aim of an exaltation is always associated with the main cultural political concept of the dievturi – Latvianness, namely, to make Latvianness more active, to offer an opportunity to approach Latvianness, make efforts for deeper comprehension of it, being aware and living through it, although thematically it may be dedicated to separate components of Latvianness (people, land, language, God, Māra, Laima, work, virtues, human life, and the like). Also, the most essential ideas and values of dievturība – gender equality, domesticity, antiglobalism, ecology, traditional marriage formula, life style and appearance, environment (for example, use of Latvian language), music, art and literature priorities (classical and/or national music, use of local building materials and ornaments (all ornaments have been observed in Latvia’s nature), writers, poets and playwrights who most precisely depict the “Latvian spirit” – derive from folk songs and the cultural concepts deriving thereof. Activity in the field of Latvianness (ethnicity conception) is in accord with the activity in favour of the future of the Latvian people, symbolical non-forgetting of culture correspond to generating of culture. This attributes a political and social dimension to the cultural activity of dievturi. Dievturība does not perform an official cultural politics of cultural values, heritage, traditions etc., this is a task for politicians; however, it is at least a marginal participant of the cultural political sphere. Placing ethnicity, or the Latvian discourse, at the centre of cultural politics encompasses the range of further impact when the seeming encapsulation within the margins of culture are replaced by reflections on Latvian economy, guidelines in education and science, health care system, axiological juxtaposition of the countryside and city. Also, the evaluation and criticism of the activity of the Christian Church by the dievturi is connected with the conception of Latvianness. Dievturi strongly disclaim Christianity and any chance of mutual cooperation (and also vice versa), protest against its monopoly position in Latvian society, consider Christianity a historically alien religion having been forced upon Latvians and demanding the status of a traditional religion in Latvia also for dievturība including, for example, the right to wed, to celebrate religious festivals. The results of field research do not allow to speak about dievturība today as a strong and united manifestation of Latvian religious experience and way of life. Rather, it is possible to register (after the decline of the movement at the end of the 1990s and at the beginning of the 2000s) a quite consistent and sufficiently active revival which is connected with the appearance of new persons and creative ideas among Latvian dievturi. The future events depend on the fact whether dievturi themselves would be able to solve the protracted inner inconsistencies and find a uniting grounds for further development of the movement. The article is based on the study results obtained during the 2006–2008 field research carried out in dievturi groups (interviews with group leaders, participants and individual representatives, transcripts of audio and video materials). The study was carried out with the financial support of the project “Society and lifestyles” and using its accepted methods – ethnographic description, semi-structured interviews and methods of visual anthropology (photography, filming) and instructions by the Ethical Commission (for example use of assumed names for storytellers).

Full TextThe first law enacted in Canada to protect existing Aboriginal rights was section 35 of the Constitution Act, 1982.2 The first law in Canada to recognize the rights of non-human animals as anything other than property has yet to be enacted. The first Supreme Court of Canada (hereafter referred to as the Court) case to interpret section 35 was R. v. Sparrow.3 The 1990 case confirmed an Aboriginal right of the Musqueam peoples of British Columbia to fish for food, social and ceremonial purposes. Since this precedent-setting case, many similar claims have been brought before the courts by way of the fluctuating legal space created by s.35. Many of these cases have been about establishing rights to fish4, hunt5, and trap non-human animals (hereafter referred to as animals). The Court has developed, and continues to develop tests to determine the existence and scope of Aboriginal rights. These tests primarily embody cultural, political and, to a surprisingly lesser degree, legal forces. One of the principal problems with these tests is that they privilege, through the western philosophical lens, the interests of humans. Animals are, at best, the resources over which ownership is being contested. The Euro-centric legal conceptualization of animals as 'resources' over which ownership can be exerted is problematic for at least two reasons. First, the relegation of animals solely to a utilitarian role is antithetical to Indigenous-animal relationships and therefore demonstrates one of the fundamental ways the Canadian legal system is ill equipped to give adequate consideration to Indigenous law. Second, failure to consider animals' inherent value and agency in this context reproduces the human-animal and culture-nature binaries that are at the root of many of western Euro-centric society's inequities. This paper argues that Aboriginal peoples' relationships with animals are a necessary, integral and distinctive part of their cultures6 and, therefore, these relationships and the actors within them are entitled to the aegis of s.35. Through the legal protection of these relationships, animals will gain significant protection as a corollary benefit. If the Court were to protect the cultural relationships between animals and Aboriginal groups, a precondition would be acceptance of Indigenous legal systems. Thus, this paper gives a brief answer to the question, what are Indigenous legal systems and why are animals integral to them? The Anishinabe (also known Ojibwe or Chippewa) are Indigenous peoples who have historically lived in the Great Lakes region. The Bruce Peninsula on Lake Huron is home to the Cape Croker Indian Reserve, where the Chippewas of Nawash First Nation live. The people of this First Nation identify as Anishinabe. The Anishinabek case of Nanabush v. Deer is a law among these people and is used throughout the paper as an example of Indigenous-animal relationships. Making the significant assumption that s.35 has the capacity to recognize Indigenous law, the subsequent section of the paper asks why we should protect these relationships and how that protection should be achieved. Finally, the paper concludes that both the ability of s.35 to recognize Indigenous-animal relationships, and the judicial and political will to grant such recognition, are unlikely. Indigenous-animal relationships are integral to the distinctive culture of the Anishinabek, however the courts would be hesitant to allow such an uncertain and potentially far-reaching right. This is not surprising given that such a claim by both Indigenous and animal groups would challenge the foundations upon which the Canadian legal system is based. There are many sensitive issues inherent in this topic. It should be noted the author is not of Indigenous ancestry, but is making every effort to learn about and respect the Indigenous legal systems discussed. While this paper focuses on a number of Anishinabek laws; it is neither a complete analysis of these practices, nor one that can be transferred, without adaptation, to other peoples. Finally, Indigenous peoples and animal rights and Indigenous law scholars, such as Tom Regan and Mary Ellen Turpel-Lafond, respectively, may insist on an abolitionist approach to animal 'use' or reject the legitimacy of s.35 itself.7 These perspectives are worthy and necessary. This paper positions itself amongst these and other sources in order to reflect upon the timely and important issue of the legal status of Indigenous-animal relationships. I:WHAT ARE INDIGENOUS LEGAL SYSTEMS? The Law Commission of Canada defines a legal tradition as “a set of deeply rooted, historically conditioned attitudes about the nature of law, the role of law in the society and the polity, the proper organization and operation of a legal system, and the way law is or should be made, applied, studied, perfected and taught.”8 Indigenous legal traditions fit this description. They are living systems of beliefs and practices, and have been recognized as such by the courts.9 Indigenous practices developed into systems of law that have guided communities in their governance, and in their relationships amongst their own and other cultures and with the Earth.10 These laws have developed through stories, historical events that may be viewed as ‘cases,’ and other lived experiences. Indigenous laws are generally non-prescriptive, non-adversarial and non-punitive and aim to promote respect and consensus, as well as close connection with the land, the Creator, and the community. Indigenous laws are a means through which vital knowledge of social order within the community is transmitted, revived and retained. After European ‘settlement’ the influence of Indigenous laws waned. This was due in part to the state’s policies of assimilation, relocation and enfranchisement. 11 Despite these assaults, Indigenous legal systems have persevered; they continue to provide guidance to many communities, and are being revived and re-learned in others. For example, the Nisga’a’s legal code, Ayuuk, guides their communities and strongly informs legislation enacted under the Nisga’a Final Agreement, the first modern treaty in British Columbia.12 The land and jurisdiction claims of the Wet’suwet’en and Gitxsan Nations ultimately resulted in the Court’s decision in Delgamuukw,13 a landmark case that established the existence of Aboriginal title. The (overturned) BC Supreme Court’s statement in Delgamuukw14 reveals two of the many challenges in demonstrating the validity of Indigenous laws: “what the Gitxsan and Wet’suwet’en witnesses[es] describe as law is really a most uncertain and highly flexible set of customs which are frequently not followed by the Indians [sic] themselves.” The first challenge is that many laws are not in full practice, and therefore not as visible as they could be and once were. What the courts fail to acknowledge, however, is that the ongoing colonial project has served to stifle, extinguish and alter these laws. The second challenge is that the kind of law held and practiced by Indigenous peoples is quite foreign to most non-Indigenous people. Many Indigenous laws have animals as central figures. In Anishinabek traditional law, often the animals are the lawmakers15: they develop the legal principles and have agency as law givers. For instance, the Anishinabek case Nanabush v. Deer, Wolf , as outlined by Burrows, is imbued with legal principles, lessons on conduct and community governance, as well as ‘offenses’ and penalties. It is not a case that was adjudicated by an appointed judge in a courtroom, but rather one that has developed over time as a result of peoples’ relationships with the Earth and its inhabitants. An abbreviated summary of the case hints at these legal lessons: Nanabush plays a trick on a deer and deliberately puts the deer in a vulnerable position. In that moment of vulnerability, Nanabush kills the deer and then roasts its body for dinner. While he is sleeping and waiting for the deer to be cooked, the Wolf people come by and take the deer. Nanabush wakes up hungry, and out of desperation transforms into a snake and eats the brains out of the deer head. Once full, he is stuck inside the head and transforms back into his original shape, but with the deer head still stuck on. He is then chased and nearly killed by hunters who mistake him for a real deer. This case is set within the legal context of the Anishinabek’s treaty with deer. In signing the treaty, the people were reminded to respect beings in life and death and that gifts come when beings respect each other in interrelationships.16 Nanabush violated the rights of the deer and his peoples’ treaty with the deer. He violated the laws by taking things through trickery, and by causing harm to those he owed respect. Because his actions were not in accordance with Anishinabek legal principles, he was punished: Nanabush lost the thing he was so desperately searching for, and he ended up nearly being killed. This case establishes two lessons. The first is that, like statutory and common law, with which Canadians are familiar, Indigenous law does not exist in isolation. Principles are devised based on multiple teachings, pre- vious rules and the application of these rules to facts. That there are myriad sources of Indigenous law suggests that the learning of Indigenous law would require substantial effort on the part of Canadian law-makers.17 The second is that animals hold an important place in Indigenous law, and those relationships with animals – and the whole ‘natural’ world – strongly inform the way they relate to the Earth. II: CAN CANADIAN LAW ACCEPT INDIGENOUS LEGAL SYSTEMS? If there were a right recognized under s.35 concerning the Indigenous-animal relationship, what would it look like? Courts develop legal tests to which the facts of each case are applied, theoretically creating a degree of predictability as to how a matter will be judged. Introduced in Sparrow, and more fully developed in Van der Peet, a ‘test’ for how to assess a valid Aboriginal right has been set out by the Court. Summarized, the test is: “in order to be an Aboriginal right an activity must be an element of a practice, custom or tradition integral to the distinctive culture of the Aboriginal group claiming the right.”18 There are ten, differently weighted factors that a court will consider in making this assessment. The right being ‘tested’ in this discussion is the one exemplified in Nanabush v. Deer: the ability of Indigenous peoples to recognize and practice their laws, which govern relationships, including death, with deer and other animals. The courts have agreed that a generous, large and liberal construction should be given to Indigenous rights in order to give full effect to the constitutional recognition of the distinctiveness of Aboriginal culture. Still, it is the courts that hold the power to define rights as they conceive them best aligning with Canadian society19; this is one way that the Canadian state reproduces its systems of power over Indigenous peoples.20 The application of the Aboriginal right exemplified in Nanbush v. Deer to the Sparrow and Van der Peet tests would likely conclude that the Anishinabek do have an integral and distinctive relationship with animals. However, due to the significant discretion of the Court on a number of very subjective and politically sensitive factors, it is uncertain that the Nanabush v. Deer case would ‘pass’ Van der Peet’s required ten factors.21 This is indicative of the structural restraints that s.35 imposes. 22 The questions it asks impair its ability to capture and respect the interrelationships inherent in Indigenous peoples’ interactions with animals. For example, the Court will characterize hunting or fishing as solely subsistence, perhaps with a cultural element. Shin Imai contends these activities mean much more: “To many…subsistence is a means of reaffirming Aboriginal identity by passing on traditional knowledge to future generations. Subsistence in this sense moves beyond mere economics, encompassing the cultural, social and spiritual aspects for the communities.”23 Scholar Kent McNeil concludes that: “regardless of the strengths of legal arguments in favour of Indigenous peoples, there are limits to how far the courts […] are willing to go to correct the injustices caused by colonialism and dispossession.”24 It is often not the legal principles that determine outcomes, but rather the extent to which Indigenous rights can be reconciled with the history of settlement without disturbing the current economic and political structure of the dominant culture. III:WHY PROTECT THE ANIMAL-INDIGENOUS RELATIONSHIP? Legally protecting animal-Indigenous relationships offers symbiotic, mutually respectful benefits for animals and for the scope of Aboriginal rights that can be practiced. For instance, a protected relationship would have indirect benefits for animals’ habitat and right to life: it would necessitate protecting the means necessary, such as governance of the land, for realization of the right. This could include greater conservation measures, more contiguous habitat, enforcement of endangered species laws, and, ideally, a greater awareness and appreciation by humans of animals and their needs. Critical studies scholars have developed the argument that minority groups should not be subject to culturally biased laws of the mainstream polity.24 Law professor Maneesha Deckha points out that animals, despite the central role they play in a lot of ‘cultural defences,’ have been excluded from our ethical consideration. Certainly, the role of animals has been absent in judicial consideration of Aboriginal rights.26 Including animals, Deckha argues, allows for a complete analysis of these cultural issues and avoids many of the anthropocentric attitudes inherent in Euro-centric legal traditions. In Jack and Charlie27 two Coast Salish men were charged with hunting deer out of season. They argued that they needed to kill a deer in order to have raw meat for an Aboriginal religious ceremony. The Court found that killing the deer was not part of the ceremony and that there was insufficient evidence to establish that raw meat was required. This is a case where a more nuanced consideration of the laws and relationships with animals would have resulted in a more just application of the (Canadian) law and prevented the reproduction of imperialist attitudes. A criticism that could be lodged against practicing these relationships is that they conflict with the liberty and life interests of animals.28 Theoretically, if Indigenous laws are given the legal and political room to fully operate, a balance between the liberty of animals and the cultural and legal rights of Indigenous peoples can be struck.29 Indeed, Indigenous peoples’ cultural and legal concern for Earth is at its most rudimentary a concern for the land, which is at the heart of the challenge to the Canadian colonial system. If a negotiated treaty was reached, or anti-cruelty and conservation laws were assured in the Indigenous peoples’ self government system, then Canadian anti-cruelty30 and conservation laws,31 the effectiveness of which are already questionable, could be displaced in recognition of Indigenous governance.32 Indigenous peoples in Canada were – and are, subject to imposed limitations – close to the environment in ways that can seem foreign to non-Indigenous people.33 For example, some origin stories and oral histories explain how boundaries between humans and animals are at times absent: Animal-human beings like raven, coyote and rabbit created them [humans] and other beings. People …acted with respect toward many animals in expectation of reciprocity; or expressed kinship or alliance with them in narratives, songs, poems, parables, performances, rituals, and material objects. 34 Furthering or reviving these relationships can advance the understanding of both Indigenous legal systems and animal rights theory. Some animal rights theorists struggle with how to explain the cultural construction of species difference: Indigenous relationships with animals are long standing, lived examples of a different cultural conception of how to relate to animals and also of an arguably healthy, minimally problematic way to approach the debate concerning the species divide.35 A key tenet of animal-Indigenous relationships is respect. Shepard Krech posits that Indigenous peoples are motivated to obtain the necessary resources and goals in ‘proper’ ways: many believe that animals return to the Earth to be killed, provided that hunters demonstrate proper respect.36 This demonstrates a spiritual connection, but there is also a concrete connection between Indigenous peoples and animals. In providing themselves with food and security, they ‘manage’ what Canadian law calls ‘resources.’37 Because of the physical nature of these activities, and their practical similarity with modern ‘resource management,’ offering this as ‘proof’ of physical connection with animals and their habitat may be more successful than ‘proving’ a spiritual relationship. Finally, there are health reasons that make the Indigenous-animal relationship is important. Many cultures have come to depend on the nutrients they derive from particular hunted or fished animals. For example, nutrition and physical activity transitions related to hunting cycles have had negative impacts on individual and community health.38 This shows the multidimensionality of hunting, the significance of health, and, by extension, the need for animal ‘resources’ to be protected. IV: HOW SHOULD WE PROTECT THESE ABORIGINAL RIGHTS? If the Anishinabek and the deer ‘win’ the constitutional legal test (‘against’ the state) and establish a right to protect their relationships with animals, what, other than common law remedies,39 would follow? Below are ideas for legal measures that could be taken from the human or the animal perspective, or both, where benefits accrue to both parties. If animals had greater agency and legal status, their needs as species and as individuals could have a meaningful place in Canadian common and statutory law. In Nanabush v. Deer, this would mean that the deer would be given representation and that legal tests would need to be developed to determine the animals’ rights and interests. Currently the courts support the view that animals can be treated under the law as any other inanimate item of property. Such a legal stance is inconsistent with a rational, common-sense view of animals,40 and certainly with Anishinabek legal principles discussed herein.41 There are ongoing theoretical debates that inform the practical questions of how animal equality would be achieved: none of these in isolation offers a complete solution, but combined they contribute to the long term goal. Barsh and James Sákéj Youngblood Henderson advocate an adoption of the reasoning in the Australian case Mabo v. Queensland,42 where whole Aboriginal legal systems were imported intact into the common law. Some principles that Canada should be following can also be drawn from international treaties that Canada has or should have signed on to.43 Another way to seek protection from the human perspective is through the freedom of religion and conscience section of the Charter. Professor John Borrows constructs a full argument for this, and cites its challenges, in Living Law on a Living Earth: Aboriginal Religion, Law and the Constitution.44 The strongest, but perhaps most legally improbable, way to protect the animal- Indigenous relationship is for Canada to recognize a third, Indigenous order of government (in addition to provincial and federal), where all three orders are equal and inform one another’s laws. This way, Indigenous laws would have the legal space to fully function and be revived. Endowing Indigenous peoples with the right to govern their relationships would require a great acquiescence of power by governments and a commitment to the establishment and maintenance of healthy self-government in Indigenous communities. Louise Mandell offers some reasons why Canada should treat Aboriginal people in new ways, at least one of which is salient to the third order of government argument: To mend the [E]arth, which must be done, governments must reassess the information which the dominant culture has dismissed. Some of that valuable information is located in the oral histories of Aboriginal Peoples. This knowledge will become incorporated into decisions affecting the [E]arth’s landscape when Aboriginal Peoples are equal partners in decisions affecting their territories.45 V: CONCLUSION A legal system that does not have to justify its existence or defend its worth is less vulnerable to challenges.46 While it can be concluded that s.35 has offered some legal space for Indigenous laws and practices, it is too deeply couched in Euro-centric legal traditions and the anthropocentric cultural assumptions that they carry. The most effective strategy for advancing Indigenous laws and culture, that would also endow many animals with greater agency, and relax the culture-nature, human-animal binaries, is the formal recognition of a third order of government. Lisa Chartrand explains that recognition of legal pluralism would be a mere affirmation of legal systems that exist, but which are stifled: “…this country is a multijuridical state, where the distinct laws and rules of three systems come together within the geographic boundaries of one political territory.” 47 Revitalizing Indigenous legal systems is and will be a challenging undertaking. Indigenous communities must reclaim, define and understand their own traditions: “The loss of culture and traditions caused by the historic treatment of Aboriginal communities makes this a formidable challenge for some communities. Equally significant is the challenge for the Canadian state to create political and legal space to accommodate revitalized Indigenous legal traditions and Aboriginal law-making.”48 The project of revitalizing Indigenous legal traditions requires the commitment of resources sufficient for the task, and transformative change to procedural and substantive law. The operation of these laws within, or in addition to, Canadian law would of course cause widespread, but worthwhile controversy. In Animal Bodies, Cultural Justice49 Deckha argues that an ethical relationship with the animal Other must be established in order realize cultural and animal rights. This paper explores and demonstrates the value in finding legal space where cultural pluralism and respect for animals can give rise to the practice of Indigenous laws and the revitalization of animal-Indigenous relationships. As Borrows writes: “Anishinabek law provides guidance about how to theorize, practice and order our association with the [E]arth, and could do so in a way that produces answers that are very different from those found in other sources.”50 (see PDF for references)