A new monotypic genus and species from China, \u3cem\u3eLangxie feti\u3c/em\u3e gen. et sp. n. (Scorpiones: Buthidae)

A new monotypic genus, Langxie gen. n., is described from Xizang (Tibet), China. The new genus shares an important morphological character with Afrolychas Kovařík, 2019: absence of external accessory denticles (EADs) along the sixth row of median denticles (MDs) on the pedipalp movable finger. Langxie gen. n. is different from Afrolychas in the following aspects: loss of EAD near the proximally enlarged MD within each row (i. e., loss of all EAD on the movable finger; this also distinguishes the new genus from other related genera in the “(Ananteris + Isometrus)” clade (Štundlová et al., 2022)), subaculear tubercle armed with or without a secondary tubercle dorsally, immaculate color pattern, more slender appendages and metasoma, and less sexually dimorphic pectines. Langxie gen. n. further differs from another geographically close genus, Himalayotityobuthus Lourenço, 1997, by the presence of highly developed pectinal fulcra (vs. absent in Himalayotityobuthus), six rows of MDs on the pedipalp movable finger (vs. 7–8 in Himalayotityobuthus) and five pairs of lateral ocelli (vs. 3 in Himalayotityobuthus). The new species, Langxie feti sp. n., is small and slender, exhibiting no obvious sexual dimorphism in pedipalp and metasoma, but the sexes are visibly different in the relative size of median ocelli and coarseness of carapacial granulation. Lattice microstructures are prominently developed on its cuticle

Can material asset reorganizations affect acquirers’ debt financing costs? – Evidence from the Chinese Merger and Acquisition Market

In this paper, we investigate whether material asset reorganizations (MARs), a special form of merger and acquisition (M&A) transactions, can affect the acquirers’ cost of debt financing. Further, we examine the effect of acquiring firms’ accounting information quality on the cost of debt and on the association between MARs and debt costs. We predict that compared to conventional M&As, large-scale acquisitions through MARs can generate a much greater influx of assets from target firms. This raises the acquirers’ asset collateral and thus reduces the cost of debt. Because the quality of accounting information is a key factor affecting the cost of debt, we suggest that it has a spillover effect on the debt-cost effect of MARs. Using M&A transactions by listed companies in the Chinese A-share market from 2008 to 2014 as our sample, we find that MARs are associated with a higher asset collateral and lower ex post cost of debt than conventional M&As. Furthermore, we show that the acquiring firms’ accounting information quality has a significant negative effect on debt costs, and the negative association between MARs and the cost of debt is more pronounced when accounting information quality is higher. Keywords: Material asset reorganizations, Merger and acquisition, Accounting information quality, Asset collateral, Cost of debt financin

Identifying M&A targets and the information content of VC/PEs

The information gap in the M&A market hinders acquirers from effectively identifying high-quality targets. We examine whether VC/PEs convey information content in the M&A market and whether acquirers can use such information to identify high-quality targets. We show that VC/PEs have significant information content and can signal high-quality target companies via “certification”. When acquirers lack acquisition experience and targets are located in inferior information environments, VC/PE “certification” is more significant. The better reputation a VC/PE has, the more information it conveys. Syndicate VC/PEs convey stronger information than independent VC/PEs. We also find that acquirers do not pay higher premiums for high-quality targets. Overall, our results suggest that VC/PEs have value relevance in the M&A market, confirming their “certification” role. We present means for acquirers to select high-quality targets and investors to build efficient portfolios. Keywords: M&A, Certification, VC/PEs, Information conten

Do Financial Advisors Live Up to Their Reputation: The Case of Major Assets Restructurings of Chinese Listed Companies

We investigate whether top-tier advisors provide superior services by examining the relationship between reputation (measured by whether it is a top-10 advisor ranked on deal value) of financial advisors on the bidder side and stock market-based/accounting-based performance of bidders. Using Chinese listed companies with major assets reorganizations (MARs, M&As with large-scale target), we find top-tier advisors are associated with higher excess returns (CARs), implying that reputation generates a verification effect on investors. But we find no significant relationship between the advisor reputation and bidders’ accounting-based performance post-MARs. The findings indicate that although advisor reputation can attract M&A business and sends positive signal to the market, it does not lead to stronger financial performance in the long run. That is, the so-called top-tier financial advisors fail to live up to their reputation. We also find that payment premium is an intervening variable between advisor reputation and the long-term accounting-based performance of bidders, suggesting that top-tier advisors fail in their duties to help clients achieve greater share of synergy gains

Do Financial Advisors Live Up to Their Reputation: The Case of Major Assets Restructurings of Chinese Listed Companies

We investigate whether top-tier advisors provide superior services by examining the relationship between reputation (measured by whether it is a top-10 advisor ranked on deal value) of financial advisors on the bidder side and stock market-based/accounting-based performance of bidders. Using Chinese listed companies with major assets reorganizations (MARs, M&As with large-scale target), we find top-tier advisors are associated with higher excess returns (CARs), implying that reputation generates a verification effect on investors. But we find no significant relationship between the advisor reputation and bidders’ accounting-based performance post-MARs. The findings indicate that although advisor reputation can attract M&A business and sends positive signal to the market, it does not lead to stronger financial performance in the long run. That is, the so-called top-tier financial advisors fail to live up to their reputation. We also find that payment premium is an intervening variable between advisor reputation and the long-term accounting-based performance of bidders, suggesting that top-tier advisors fail in their duties to help clients achieve greater share of synergy gains

Regulation, Tax, and Cryptocurrency Pricing

This paper examines whether and how jurisdictional gaps in crypto regulations partially explain the persistent price differentials of the same cryptocurrency across different jurisdictions. Using Bitcoin prices from twelves exchanges located in eight jurisdictions, we discover that variations in both the regulatory framework and specific crypto policies have a significant incremental explanatory power for the cross-jurisdiction disparity in Bitcoin prices. First, greater uncertainty in the regulatory framework for cryptocurrencies is associated with lower Bitcoin prices (denominated in U.S. dollars). Second, Bitcoin prices are lower in jurisdictions that impose income taxes on crypto transactions and mandates banks’ real name verification of crypto accounts that removes anonymity. Bitcoin prices are, however, higher in jurisdictions that apply anti–money laundering laws directly to crypto exchanges and take strong exchange-related enforcement actions. Interestingly, Bitcoin prices are lower in jurisdictions with a larger supply of fiat currencies, suggesting the influence of monetary policies on Bitcoin pricing. Utilizing staggered adoptions of specific cryptocurrency polices, we identify the influence of regulation on crypto pricing using both the difference-in-differences design and the regulatory event study methodology

China’s audit market competition and the competitive strategies of the international Big 4 audit firms

ABSTRACTThis study investigates the competitive strategies of the international Big 4 audit firms when faced with regional competition from the local Big 6 audit firms. We find that for the Big 4, competition reduces their audit fee premiums and forces them to recruit high-risk clients, while does not affect their audit quality. In further analyses, we find that competition led to greater changes for the Big 4 after the CICPA’s proposal in 2007 and when the local Big 6 are in leading positions. We also find that the local Big 6 compromise on audit quality in addition to audit fee premiums and client criteria when faced with competition from small local audit firms. Overall, this study reveals the competitive strategies of the Big 4 under competitive pressure from the local Big 6, which suggests that local audit firms can compete with international audit firms for audit services by scale development