We describe how managers can entrench themselves by making manager-specific investments that make it costly for shareholders to replace them. By making manager-specific investments. managers can reduce the probability of being replaced extract higher wages and larger perquisites from shareholders. and obtain more latitude in determining corporate strategy. Our model of entrenchment has empirica...

Threshold secret sharing schemes do not prevent any malicious behavior of the dealer or shareholders and so we need verifiable secret sharing, to detect and identify the cheaters, to achieve fair reconstruction of a secret. The problem of verifiable secret sharing is to verify the shares distributed by the dealer. A novel approach for verifiable secret sharing is presented in this paper where b...

Huge amount of capital involved in mergers and acquisition activity has raised the stakes of all the stakeholders involved. From the shareholders, senior management, employees and customers of merging, acquiring and acquired companies to investment banks and other parties involved, everyone anticipates substantial monetary/non monetary returns. Postmerger analysis reports, though, have not been...

We consider the problem of increasing the threshold parameter of a secret-sharing scheme after the setup (share distribution) phase, without further communication between the dealer and the shareholders. Previous solutions to this problem require one to start off with a non-standard scheme designed specifically for this purpose, or to have secure channels between shareholders. In contrast, we s...

We highlight the ex ante risk-shifting incentives faced by a bank’s shareholders/managers when CoCos (contingent convertible capital) are part of the capital structure. The risk shifting incentive arises from the wealth transfers that the shareholders will receive upon the CoCo’s conversion under CoCo designs widely used in practice. Specifically we show that for principal writedown and nondilu...

This paper investigates the political consequences of the broad spread of stock ownership among US households over the past 25 years. Using four cross-sections of the American National Election Study from 1998 to 2004, and a three-wave panel from 2000-2004, we find a consistent positive relationship between stockownership and identifying as a Republican after controlling for obvious confounds. ...

As the only luxury company in Fortune Global 500 list, Dior is far behind FMCG L’Oréal world’s most famous brand value appraisal agency Interbrand. However, superior to ranking. The difference between which due calculation basis. This paper analyzes basis of Interbrand and ranking by Gray Relation Analysis, finds that impact profits, assets, shareholders’ equity number employees on models signi...

As complex networks in economics, we consider Japanese shareholding networks as they existed in 1985, 1990, 1995, 2000, 2002, and 2003. In this study, we use as data lists of shareholders for companies listed on the stock market or on the over-the-counter market. The lengths of the shareholder lists vary with the companies, and we use lists for the top 20 shareholders. We represent these shareh...

A general equilibrium model with uncertainty and production externalities is studied. In absence of markets for externalities, we look for governances and conditions under which majority voting among shareholders is likely to give rise to efficient internalization. Two observations leed the analysis: On the one hand, the shareholders with the right incentives for efficient internalization are t...

With the rise of the Asian financial crisis in 1997 and the smash of IT bubbles in 2000, there has been an increase in the number of corporate takeovers and mergers. In light of these events, we investigate the effects of acquisition announcements on the pricing behavior of the Asian bidding and target firms using the data of mergers or acquisitions announcements from the Bloomberg Database and...