This paper provides a comprehensive examination of corporate responses to financial distress during an economy-wide crisis, specifically through the restructuring of assets (through asset sales, mergers, or liquidations) and/or liabilities. Using firm-level data from five countries hardest hit by the East Asian financial crisis of 1997-98, this study contrasts the effects that financial and cor...

I show that firms may optimally sell blocks of their own equity to other firms in anticipation of future corporate control activity. In the model, a target and one potential acquirer, who may also be an alliance partner, can negotiate before synergy values are learned. I find that equity implements an optimal mechanism, allowing the partners to extract surplus from outside bidders who may arriv...

SYNOPSIS We examine the effectiveness of corporate governance in influencing insider trading around private in-house meetings (hereafter “private meetings”) between management and investors China. Consistent with better curbing (1) disclosure nonpublic price-sensitive information (2) trading, we find that quality is associated reduced frequency, value, profitability meetings. Firms appear to ex...

This paper analyzes the impact of intermediary concentration on allocation revenue in online platforms. We study sponsored search documenting how advertisers increasingly bid through a handful specialized intermediaries. enhances automated bidding and data pooling, but lessens competition whenever represents competing advertisers. Using nearly 40 million Google keyword auctions, we first apply ...

Concentration-based thresholds for horizontal mergers, such as those in the US Horizontal Merger Guidelines, play a central role merger analysis but their basis remains unclear. We show that there is both theoretical and an empirical focusing solely on change concentration, ignoring its level, screening mergers whether unilateral price effects will harm consumers. also argue current threshold l...

Abstract We measure U.S. listed companies’ skilled labor risk—that is, the potential failure in attracting and retaining labor, by intensity of discussions on this issue 10-K filings. show that effectively captures firm risk due to mobility labor. find an increase from 25th 75th percentile would wage 22% (or $15,593) also lead higher equity-based incentive pay. The interacts with other corporat...

ABSTRACT We present theory and empirical evidence that greater financial reporting quality can incentivize myopic investments. In the model, increases investor response to earnings, elevating manager’s incentive invest myopically improve earnings. Using setting of Big N auditors’ acquisitions non-Big Ns, which increased earnings for acquired client firms, we find supporting Specifically, client...

The US banking sector has consolidated through acquisitions in recent decades, resulting a significant decrease the number of lending institutions. Agricultural commercial banks have been preferred target such acquisitions, representing 15%–40% all between 1994 and 2018. In this study, we examine postacquisition performance that acquire agricultural terms profitability, bankruptcy risk, loan mo...

Failure of a bank has serious connotations for effectiveness the financial system in an economy. Therefore, corporate governance banks needs special attention and it ushers need to measure Corporate Governance Index examine relationship between Financial Performance Banks. Data was collected from annual reports CGI banks. analyzed by using independent sample ‘t’ test correlation analysis. The r...