HOSE WHO WISH to determine why banks fail typically focus on the characteristics of banks and their local markets that make them vulnerable to losses.1 A key factor often overlooked, however, is capital injections by shareholders. A bank whose losses exceed its capital need not fail, if its shareholders (existing or new) inject sufficient additional funds to restore its capital ratio to a level...

Using the recent IPO of Google as an example, we provide empirical evidence to better understand issuers’ decision process at the IPO stage. Our results suggest that Google timed its offering based on both the general market and the IPO market conditions. Selling shareholders took advantage of information gathered during the registration process and adjusted the number of secondary shares offer...

Based on unbalanced panel dates of 4060 companies listed from 2003 2007 in Shanghai and Shenzhen Stock Markets, this paper empirically studies the degree of product market competition, the relationship between cash dividends distribution tendency and cash dividends policy. Results show that controlling shareholders have significant motivation to distribute cash dividends, and this kind of incen...

It is widely held that for tax reasons corporate shareholders are the only shareholders that prefer dividends to capital gains. This has led to clientele models where corporate blockholders migrate to firms paying dividends and use their voting power to increase dividends in these firms. We use panel data and trades of large blocks of stock to investigate these propositions. Although one-third ...

Although most shareholders hold diversi…ed portfolios, the corporate …nance literature postulates that shareholders maximise …rm value, while managers sometimes do not. We argue to the contrary that undiversi…ed managers may care more about …rm-level risk and return than about the value of their shareholders’diversi…ed portfolio. These two objectives may di¤er in presence of product-market inte...

The ability to buy “empty votes” by using derivative contracts to separate shares’ voting and cash flow rights is a cause of policy concern. We construct a formal model of a market for empty votes where informed and uninformed (and potentially biased) shareholders endogenously choose to demand or supply. There always exists an equilibrium where only informed shareholders demand votes, since uni...

PVSS stands for publicly verifiable secret sharing. In PVSS, a dealer shares a secret among multiple share holders. He encrypts the shares using the shareholders' encryption algorithms and publicly proves that the encrypted shares are valid. Most of the existing PVSS schemes do not employ an ElGamal encryption to encrypt the shares. Instead, they usually employ other encryption algorithms like ...

Proof of Lemma A.1: The shareholder’s bene…t from voting for the proposal depends on his beliefs about the state of the world. Since !g > !b, other shareholders’ votes are informative about their signals and could be used to update the shareholder’s beliefs. However, when voting, the shareholder does not observe the votes of other shareholders and therefore has to consider N possible situations...

In China, an increasing number of state-owned firms have gone public, which suggests a dual-principal phenomenon such that firms are owned by both the government and non-state shareholders. Non-state shareholders tend to focus on the firm’s market orientation and performance, while state shareholders seek political goals over profit-maximization. This manuscript attempts to investigate this iss...