Two Essays on Managerial Horizon, Cash Holdings and Earnings Management

U.S. corporations are now sitting on an enormous stockpile of cash. Academicians and practitioners alike have tried to understand the reasons why companies are holding on to so much cash. Numerous studies have explored the various motives for holding cash. Many researchers have tried to correlate excess cash holding with particular firm characteristics. This dissertation analyzes the correlations that exist between excess cash holding and some measurable managerial characteristics. This dissertation examines if managerial horizon has any impact on excess cash holding. It also examines if managerial horizon and excess cash has any impact on firm value. Four different measures of managerial horizon were constructed. The first two constructs (MH 1 and MH2) are based on the CEO\u27s age and how long he has been the CEO of the company. The next two constructs (MH3 and MH4) are based on compensation, proportion of current compensation and proportion of future compensation. The results clearly show that CEO Age and the proportion of CEO\u27s compensation (current and future) do determine level of cash holding in the company. Younger CEOs hold more cash compared to older CEOs. Older CEOs hold less cash suggesting that as CEOs grow older they might be motivated by the idea of leaving a long lasting legacy. CEOs who receive more of their compensation in future payments also hold on to more cash, whereas CEOs who receive more of their compensation in current payments hold less cash. This makes intuitive sense because a CEO whose higher proportion of compensation is going to be paid in the future is more likely to conserve cash to better facilitate its future payments. This dissertation also shows that as companies are holding on to excess cash, the higher level of excess cash is having a significant impact on the firm value. As expected, the results show that in general firms holding more excess cash see a reduction in firm value. The second essay in this dissertation examines if managerial horizon has any effect on earnings management. Earnings are one of the most important measures of firm performance and previous studies have shown that managers have a tendency to manipulate earnings to raise investor demand for a stock. We used a very good measurement of Earnings Management (EM) as propounded by Lee and Masulis (2009) to see if it was affected by any of the four measurable constructs of managerial horizon. The results show that there is no effect of managerial horizon on earnings management. The results show that one of the important determinants of earnings management was cash flow of the firms, which lends support to the Agency problem facing the firms. The results also show that EM does not lead to higher dividend payouts in firms

The Effect of the CEO's Cultural Intelligence on Foreign Information Technology Firm Performance

Multinational Information Technology firms that start new operations in a culturally distant host country will experience negative effects based on the level of cultural distance between home and host country. Depending on the level of cultural distance and the dimensions along which these cultural differences occur, these effects can be synergistic but will tend to be mostly discordant. This paper seeks to examine how leadership in Information Technology companies can bridge the cultural divide, promoting a spirit of novelty and enrichment, thereby ensuring enrichment and synergy based on these cultural differences, instead of division and mistrust

Does Corruption Act as a Deterrent to Foreign Direct Investment in Developing Countries?

Developing countries institute policies to attract Foreign Direct Investment (FDI) that promotes growth and development. Corruption disrupts and complicates the implementation of policies that govern the inflows of FDI and the operations of foreign firms; such interference with policies is more than likely to disrupt and lower the inflows of FDI. This paper evaluates whether or not corruption reduces inflows of FDI into each and every developing country. Our study shows that developing countries with high growth rate (> 6% annual GDP growth) attract more FDI than countries with low growth rates although they are both steeped in corruption. Multi-national Corporations (MNCs) seem willing to cope with corruption in countries with high growth rates

How CEO Wealth Affects the Riskiness of a Firm

The objective of this paper is to analyze the relationship between the ownership level of managers and the risk averse behavior of the firm. We measure the ownership level of the managers by the ratio of their ownership of the company relative to their total wealth for a sample of 69 individuals from the Forbes 400 list of the wealthiest individuals in the world for the period from 2001-11 using an unbalanced panel data analysis. The dependent variable is the Altman Z-score of each firm and we further test these relationships using financial leverage. The independent variables are delta and Vega of the option portfolio of the manager, R&D for the firm, total assets, the age of the manager, the tenure of the manager, stock holding of the manager, CEO/Chair duality of the manager and firma age. The Z-score is statistically significantly related to size, CEO age, CEO wealth, and duality. Financial leverage is not statistically significantly related to any of the independent variables

How CEO Wealth Affects the Riskiness of a Firm

The objective of this paper is to analyze the relationship between the ownership level of managers and the risk averse behavior of the firm.  We measure the ownership level of the managers by the ratio of their ownership of the company relative to their total wealth for a sample of 69 individuals from the Forbes 400 list of the wealthiest individuals in the world for the period from 2001-11 using an unbalanced panel data analysis. The dependent variable is the Altman Z-score of each firm and we further test these relationships using financial leverage. The independent variables are delta and Vega of the option portfolio of the manager, R&D for the firm, total assets, the age of the manager, the tenure of the manager, stock holding of the manager, CEO/Chair duality of the manager and firma age. The Z-score is statistically significantly related to size, CEO age, CEO wealth, and duality. Financial leverage is not statistically significantly related to any of the independent variables

Correction to : The Small GTPase RAC1/CED-10 Is Essential in Maintaining Dopaminergic Neuron Function and Survival Against α-Synuclein-Induced Toxicity

With the author(s)' decision to opt for Open Choice the copyright of the article changed on March 2018 t

The Small GTPase RAC1/CED-10 Is Essential in Maintaining Dopaminergic Neuron Function and Survival Againstα-Synuclein-Induced Toxicity

Trabajo presentado en el VII Spanish Worm Meeting (SWN), celebrado en Castelldefels (Barcelona) el 28 y 29 de marzo de 2019.Peer reviewe

A. C. elegans model for X-linked adrenoleukodystrophy : roles of pmp-4 fatty acid transporter in the nervous system

X-linked adrenoleukodystrophy (X-ALD) is an inherited neurodegenerative disorder. The genetic bases for all its different phenotypic variants are mutation in the gene encoding the peroxisomal ATP-binding cassette (ABC) transporter ABCD1, which transports very long chain fatty acids from the cytosol into the peroxisome for its degradation. The default manifestation of mutation in ABCD1 is adreno myeloneuropathy (AMN), a slow, progressive dying-back axonopathy affecting both ascending and descending spinal cord tracts as well as in some cases, peripheral neuropathy. In the present study, we use the invertebrate model organism Caenorhabditis elegans to generate a new nematode model of X-ALD. We reveal that the pmp-4(ok396) deletion mutant reproduces the main features of X-ALD such as lipid accumulation, increased mitochondrial oxidative stress, axonopathy and altered locomotion. Given the evidence that oxidative stress plays an important role in VLCFA-induced pathogenesis of ALD, therapeutic efforts aimed at the removal of free-radicals, prevention of their formation, or restoration of ETC function seem promising. Indeed, here we describe the mitochondria-specific pharmacological effects of MitoQ in protecting against VLCFA-induced toxicity and oxidative stress and its ability to rescue the observed X-ALD phenotypes on pmp-4(ok396) mutant worms.La adrenoleucodistrofia ligada al cromosoma X (ALD-X) es un trastorno neurodegenerativo hereditario, causado por mutaciones en ABCD1. Este gen codifica para un transportador peroxisomal que importa ácidos grasos de cadena muy larga (AGCML) del citosol hacia el peroxisoma para su posterior degradación. La adrenomieloneuropatía (AMN) es la variante fenotípica en adultos y se manifiesta como un axonopatia de progresión lenta en la médula espinal. En este estudio utilizamos el gusano Caenorhabditis elegans para generar un nuevo modelo de ALD-X. Observamos que el mutante pmp-4(ok396) reproduce las principales características de la ALD-X (acumulación de lípidos, incremento del estrés oxidativo mitocondrial, axonopatía y locomoción alterada). Basándonos en evidencias que el estrés oxidativo inducido por acumulación de AGCML juega un papel importante en la patogénesis, estrategias enfocadas en la eliminación de radicales libres, prevención de su formación o normalización de la función de la cadena de transporte de electrones mitocondrial, poseen un prometedor potencial terapéutico. Aquí demostramos que el compuesto MitoQ actua a nivel mitocondrial protegiendo en contra del estrés oxidativo y rescata los fenotipos ALD-X en los gusanos pmp-4(ok396).La adrenoleucodistròfia lligada al cromosoma X (ALD-X) és un trastorn neurodegeneratiu hereditari, causat per mutacions en ABCD1. Aquest gen codifica per un transportador peroxisomal que importa àcids grassos de cadena molt llarga (AGCML) del citosol cap al peroxisoma per a la seva posterior degradació. La adrenomieloneuropatía (AMN) és la variant fenotípica en adults i es manifesta com una axonopatia de progressió lenta en la medul•la espinal. En aquest estudi utilitzem el cuc Caenorhabditis elegans per generar un nou model d'ALD-X. Observem que el mutant pmp-4 (ok396) reprodueix les principals característiques de l'ALD-X (acumulació de lípids, increment d'estrès oxidatiu mitocondrial, axonopatia i locomoció alterada). Basant-nos en les evidències que l'estrès oxidatiu induït per acumulació d’AGCML juga un paper important en la patogènesi, estratègies enfocades en eliminar radicals lliures, prevenirla seva formació o normalitzar la funció de la cadena de transport d'electrons mitocondrial, posseeixen un prometedor potencial terapèutic. Aquí, demostrem que el compost MitoQ actua a nivell mitocondrial protegint en contra de l'estrès oxidatiu i rescatant els fenotips ALD-X en els cucs pmp-4 (ok396)

Anti-oxidant MitoQ rescue of AWB chemosensory neuron impairment in a C. elegans model of X-linked Adrenoleukodystrophy

X-linked Adrenoleukodystrophy (X-ALD) is a neurometabolic disorder caused by a defective peroxisomal ABCD1 transporter of very long-chain fatty acids (VLCFAs). We have characterized a nematode model of X-ALD with loss of the pmp-4 gene, the worm orthologue of ABCD1. These mutants recapitulated the key hallmarks of X-ALD and importantly mitochondria targeted antioxidant MitoQ prevented axonal degeneration and locomotor disability. In this study, we further demonstrated that the AWB chemosensory neuron of the pmp-4 mutant worm is defective, both in morphology and function. Interestingly, MitoQ could rescue both the phenotypes. Collectively, our results suggest that C. elegans' chemosensation might provide a novel setting for exploring peroxisomal disease related disorders.