Board connections and M&A transactions

We examine M&A transactions between firms with current board connections and find that acquirers obtain higher announcement returns in transactions with a first-degree connection where the acquirer and the target share a common director. Acquirer returns are also higher in transactions with a second-degree connection where one acquirer director and one target director serve on the same third board. Our results suggest that first-degree connections benefit acquirers with lower takeover premiums while second-degree connections benefit acquirers with greater value creation. Overall, we provide new evidence that board connectedness plays important roles in corporate investments and leads to greater value creation

Location, Proximity, and M&A Transactions

In this paper, we examine how the geographic location of firms affects acquisition decisions and value creation for acquirers in takeover transactions. We find that firms located in an urban area are more likely to receive a takeover bid and complete a takeover transaction as a target than firms located in rural areas, and takeover deals involving an urban target are associated with higher acquirer announcement returns, after controlling for the proximity between the target and the acquirer. In addition, a target\u27s urban location significantly attenuates the negative effect of a long distance between the target and the acquirer on acquirer returns, a fact that is documented in the existing literature. Our findings reveal a previously underexplored force—firm location—that can affect takeover transactions, in addition to proximity. Our paper suggests that a firm\u27s location plays an important role in facilitating the dissemination of soft information and enhancing information-based synergies

Why Do Countries Matter so Much in Corporate Social Performance?

Why do levels of corporate social performance (CSP) differ so much across countries? We answer this question in an examination of CSP ratings of more than 2,600 companies from 36 countries. We find that firm characteristics explain very little of the variations in CSP ratings. In contrast, variations in country factors such as stages of economic development, culture, and institutions account for a significant proportion of variations in CSP ratings across countries. In particular, we find that CSP ratings are high in countries with high income-per-capita, strong civil liberties and political rights, and cultures oriented toward harmony and autonomy. Furthermore, we find that home country factors explain a smaller portion of the overall variations in CSP for multinationals and cross-listed firms than for non-multinationals and pure domestic firms, respectively

Superconducting cosmic strings as sources of cosmological fast radio bursts

In this paper we calculate the radio burst signals from three kinds of structures of superconducting cosmic strings. By taking into account the observational factors including scattering and relativistic effects, we derive the event rate of radio bursts as a function of redshift with the theoretical parameters $G\mu$ and $\mathcal{I}$ of superconducting strings. Our analyses show that cusps and kinks may have noticeable contributions to the event rate and in most cases cusps would dominate the contribution, while the kink-kink collisions tend to have secondary effects. By fitting theoretical predictions with the normalized data of fast radio bursts, we for the first time constrain the parameter space of superconducting strings and report that the parameter space of $G\mu \sim [10^{-14}, 10^{-12}]$ and $\mathcal{I} \sim [10^{-1}, 10^{2}] ~ \rm{GeV}$ fit the observation well although the statistic significance is low due to the lack of observational data. Moreover, we derive two types of best fittings, with one being dominated by cusps with a redshift $z = 1.3$, and the other dominated by kinks at the range of the maximal event rate.Comment: 13 pages, 2 figures, 1 table; references update

Bad Corporate Marriages: Waking Up in Bed the Morning After

This paper examines corporate risk taking behavior in the wake of unsuccessful merger activities. We find that relative to other firms, firms that made bad acquisitions take both more systematic risk and more idiosyncratic risk. Moreover, higher risk is associated with greater value destruction and stronger corporate governance. The increased risk can be traced to increased cash flow volatility, increased leverage, decreased asset liquidity, more investment in R&D, and more equity-based executive compensation. These findings are in line with the behavioral approach suggesting that in the domain of losses, decision makers generally become more tolerant of risk

Quasiparticle interference of C2-symmetric surface states in LaOFeAs parent compound

We present scanning tunneling microscopy studies of the LaOFeAs parent compound of iron pnictide superconductors. Topographic imaging reveals two types of atomically flat surfaces, corresponding to the exposed LaO layer and FeAs layer respectively. On one type of surface, we observe strong standing wave patterns induced by quasiparticle interference of two-dimensional surface states. The distribution of scattering wavevectors exhibits pronounced two-fold symmetry, consistent with the nematic electronic structure found in the Ca(Fe1-xCox)2As2 parent state.Comment: 13 pages, 4 figure