Political Corruption and Mergers and Acquisitions

This research examines the relation between political corruption and mergers and acquisitions (M&As). We find that local corruption increases firm acquisitiveness but decreases firm targetiveness. The levels of corruption in acquirer areas relate positively to the bid premiums and negatively to the likelihood of deal completion. Corruption motivates acquiring firms to use excess cash for payment, which mitigates the negative effect of corruption on acquirer shareholder value. The evidence indicates that acquisitions help acquiring firms convert cash into hard-to-extract assets and relocate assets from the high to low corruption areas, thereby shielding their liquid assets from expropriation by local officials

Shareholder Litigation Rights and Capital Structure Decisions

We exploit the staggered adoption of the universal demand (UD) laws across U.S. states, which impedes shareholder rights to initiate derivative lawsuits, as a quasi-natural experiment to examine the relation between shareholder litigation rights and firm capital structures. We find that weaker shareholder litigation rights due to the UD laws adoption lead to higher financial leverage, which enhances firm value. Furthermore, the positive relation between the UD laws adoption and financial leverage is more pronounced for firms exposed to higher shareholder litigation risk ex ante or financially constrained firms. Our evidence is consistent with lower shareholder litigation threats motivating firms to increase financial leverage

Tournament-Based Incentives and Mergers and Acquisitions

This research examines the relation between tournament-based incentives, which are proxied by the difference between a firm’s CEO pay and the median pay of the senior managers, and mergers and acquisitions (M&As). We find that tournament-based incentives are positively related to firm acquisitiveness and acquiring firms’ stock and operating performance. Further analysis indicates that positive acquisition performance increases the likelihood of the CEO being promoted from inside the acquiring firm. Our evidence is consistent with the view that tournament-based incentives motivate acquiring firms’ managers to make greater efforts and take more risk that result in superior acquisition performance

Midair Refueling for Sensation Seeking? Pilot CEOs and Corporate Debt Contracting

We examine the relation between chief executive officer (CEO) sensation seeking, which captures the desire for varied, novel, and complex personal sensations and experiences, and corporate debt contracting. Using pilot certificates as a proxy for the personality trait of sensation seeking, we find that firms with pilot CEOs use longer maturity debt financing even when long-term debt is more costly than short-term debt. Our findings are robust to controlling for the endogenous matching between firms and CEOs. Our evidence indicates that CEOs with sensation-seeking personality traits prefer long-term debt financing to avoid the liquidity risk associated with short-term debt financing that may hamper other corporate activities motivated by their sensation seeking

Policy Uncertainty and Firm Cash Holdings

This research examines the relation between government economic policy uncertainty and firm cash holdings. We find evidence that policy uncertainty is positively related to firm cash holdings due to firms’ precautionary motives and, to a lesser extent, investment delays. The relation between policy uncertainty and cash holdings is more pronounced for firms dependent on government spending and extends beyond business cyclicality. Further analysis indicates that the effects of policy uncertainty on corporate cash holdings are distinct from those of political, market, or other macroeconomic uncertainty

Political Corruption and Corporate Risk-Taking

We use variation in corruption convictions across judicial districts in the US to examine the relationship between political corruption and risk-taking of public firms. Firms headquartered in regions with high levels of political corruption have lower total risk and lower idiosyncratic risk on average. Further analysis shows that corruption tends to encourage firms to pursue risk-decreasing investments, lower the riskiness of their operations, and decrease asset liquidity. While managerial ownership is intended to align the interests of managers and shareholders, the presence of corruption appears to encourage undiversified managers to decrease risk-taking. Our evidence is consistent with agency theory and the asset-shielding argument that political corruption discourages managers from taking risks that expose firms to expropriation by politicians, resulting in suboptimal corporate policies

Effects of salinity and alkalinity on growth and survival of all-male giant freshwater prawn (Macrobrachium rosenbergii De Man, 1879) juveniles

All-male giant freshwater prawns (AMGFPs) have been a popular crop cultivated in the Mekong Delta, Vietnam, due to their proven production efficiency compared to all-female or mixed-sex prawn cultures. However, the crucial water quality factors impacting AMGFP aquaculture efficiency have yet to be elaborately investigated. Two separate experiments were randomly arranged with three replicates to evaluate the effects of salinity or alkalinity on the growth and survival of AMGFP juveniles during the grow-out period. The results show that the prawn survival rate in the salinity range of 0–15‰ varied from 66.1 to 74.8％ and in a salinity range of 0–5‰ was relatively low compared to the range of 10-15‰; however, the difference was not significant among salinities after 90 days of culture (p > 0.05). All the prawn growth performance parameters significantly decreased with increasing salinities of 0, 5, 10, and 15‰ after 30, 60, and 90 days of culture (p 0.05), and both were significantly higher than those at salinities of 10 and 15‰ (p < 0.05) after 90 days of culture. In addition, the survival rate reached 82.5–84.4％ and did not significantly differ among alkalinities of 80, 100, 120, 140, and 160 mgCaCO3 L−1. However, the growth performance parameters and yield of AMGFPs at an alkalinity of 160 mg L−1 were significantly higher than those at lower alkalinities (80, 100, 120, and 140 mg CaCO3 L−1) after 90 days of culture. Therefore, it is recommended that a salinity range of 0–5‰ and alkalinity of 160 mgCaCO3 L−1 is optimal for the growth-out culture of AMGFP juveniles

The Seroprevalence and Seroincidence of Enterovirus71 Infection in Infants and Children in Ho Chi Minh City, Viet Nam

Enterovirus 71 (EV71)-associated hand, foot and mouth disease has emerged as a serious public health problem in South East Asia over the last decade. To better understand the prevalence of EV71 infection, we determined EV71 seroprevalence and seroincidence amongst healthy infants and children in Ho Chi Minh City, Viet Nam. In a cohort of 200 newborns, 55% of cord blood samples contained EV71 neutralizing antibodies and these decayed to undetectable levels by 6 months of age in 98% of infants. The EV71 neutralizing antibody seroconversion rate was 5.6% in the first year and 14% in the second year of life. In children 5–15 yrs of age, seroprevalence of EV71 neutralizing antibodies was 84% and in cord blood it was 55%. Taken together, these data suggest EV71 force of infection is high and highlights the need for more research into its epidemiology and pathogenesis in high disease burden countries