Corporate response to distress: evidence from the Asian financial crisis

This paper provides a comprehensive examination of the ways in which companies respond to a country-wide crisis through the restructuring of their assets (through asset sales, mergers or liquidations) or liabilities. We find the restructuring of liabilities to be the most common type of response. On the other hand, we argue that firms may be reluctant to engage in major asset sales due to substantial price discounts that need to be applied to these transactions during the crisis. In fact, we document that transaction multiples dropped by 40% during the crisis, compared to a pre-crisis period. We contrast financial and corporate governance considerations and find strong support for the notion that, during a crisis, financial constraints have a large impact on the restructuring choice. However, we find corporate governance (e.g., control) considerations to matter only marginally both in statistical and economic terms.Corporate governance ; Financial crises - Asia

X and Y waves in the spatiotemporal Kerr dynamics of a self-guided light beam

The nonlinear stage of development of the spatiotemporal instability of the monochromatic Townes beam in a medium with self-focusing nonlinearity and normal dispersion is studied by analytical and numerical means. Small perturbations to the self-guided light beam are found to grow into two giant, splitting Y pulses featuring shock fronts on opposite sides. Each shocking pulse amplifies a co-propagating X wave, or dispersion- and diffraction-free linear wave mode of the medium, with super-broad spectrum.Comment: 9 pages, 9 figure

Reluctant Privatization

We study the evolution of the control structure of 141 privatized firms from OECD countries over the period from 1996 through 2000. We find that governments do not relinquish control after “privatization.” We show that the market-to-book ratios of privatized firms converge through time to those of a control sample. However, this convergence does not depend on whether governments relinquish their control rights. In fact, large government stakes have no negative effect on either adjusted market value or stock price performance.Privatization, Corporate governance

Commentary: Preliminary evaluation of an analog procedure to assess acceptability of intimate partner violence against women: The partner violence acceptability Movie Task

Preliminary evaluation of an analog procedure to assess acceptability of intimate partner violence against women: the Partner Violence Acceptability Movie Task

Corporate response to distress: evidence from the Asian financial crisis

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 of financial and corporate governance variables on restructuring choices. The study finds that, during a crisis, financial constraints and corporate governance each have a large effect on the restructuring choice.Financial crises - Asia ; Corporate governance

Sudden Deaths: Taking Stock of Geographic Ties

Analysis of a world-wide sample of sudden deaths of politicians reveals a market adjusted 1.7% decline in the value of companies headquartered in the politician’s home town. The decline in value is followed by a drop in the rate of growth in sales and access to credit. Our results are particularly pronounced for family firms, firms with high growth prospects, firms in industries over which the politician has jurisdiction, and firms headquartered in highly corrupt countries.

Reluctant privatization

We study the evolution of the control structure for a large sample of privatized firms in OECD countries and find evidence broadly consistent with the concept of "reluctant privatization", defined as the transfer of ownership rights in State-owned enterprises without a corresponding transfer of control rights. Indeed, as of 2000, governments are the largest shareholder or use special control powers to retain voting control of 62.4% of privatized firms. However, contrary to accepted theory, greater government control over privatized firms does not negatively affect market valuation. In fact, government stakes are positively and significantly related to peer-adjusted market-to-book ratios. Results are not driven by the choice of the benchmark, reverse causality or by agency costs associated with private ownership. Rather, it appears that the relationship documented reflects more frequent financial aid (bailouts) accruing to privatized firms that remain under government control.Privatization, Corporate Governance

Perspectives on Reoffenders: The Views of Detainees, the General Public and Those Working with Offenders

The literature has offered significant data on reoffending: for example, the relationship with drug taking, addiction, mental illness and security. However, research directly involving the voices of detainees and those intervening in the prevention of reoffending appears to be less developed. The present research aims to observe how reoffending is approached by the various players involved: the detainees (whether reoffenders or not), educators and ordinary people. In particular we endeavour to determine how reoffending is perceived, interpreted and managed. The ultimate aim is to assist those involved in the improvement of social reintegration. Interviews revealed substantial differences in how reoffending is interpreted and perceived, and this influences both the management of the risk of reoffending and the process of rehabilitation into society. Furthermore, the results showed some improvements, such as in the teamwork by all players involved, in education for the detainees, and in the implementation of social reintegration projects as alternatives to imprisonment