Corporate Control and Multiple Large Shareholders

Many firms have more than one blockholder, but finance theory suggests that one blockholder should be sufficient to bestow all benefits on a firm that arise from concentrated ownership. This paper identifies a reason why more blockholders may arise endogenously. We consider a setting where multiple shareholders have endogenous conflicts of interest depending on the size of their stake. Such conflicts arise because larger shareholders tend to be less well diversified and would therefore prefer the firm to pursue more conservative investment policies. When the investment policy is determined by a shareholder vote, a single blockholder may be able to choose an investment policy that is far away from the dispersed shareholders' preferred policy. Anticipating this outcome reduces the price at which shares trade. A second blockholder (or more) can mitigate the conflict by shifting the voting outcome more towards the dispersed shareholders' preferred investment policy and this raises the share price. The paper derives conditions under which there are blockholder equilibria.The model shows how different ownership structures affect firm value and the degree of underpricing in an IPO.

Corporate control and multiple large shareholders

Many firms have more than one blockholder, but finance theory suggests that one blockholder should be sufficient to bestow all benefits on a firm that arise from concentrated ownership. This paper identifies a reason why more blockholders may arise endogenously. We consider a setting where multiple shareholders have endogenous conflicts of interest depending on the size of their stake. Such conflicts arise because larger shareholders tend to be less well diversified and would therefore prefer the firm to pursue more conservative investment policies. When the investment policy is determined by a shareholder vote, a single blockholder may be able to choose an investment policy that is far away from the dispersed shareholders' preferred policy. Anticipating this outcome reduces the price at which shares trade. A second blockholder (or more) can mitigate the conflict by shifting the voting outcome more towards the dispersed shareholders' preferred investment policy and this raises the share price. The paper derives conditions under which there are blockholder equilibria.The model shows how different ownership structures affect firm value and the degree of underpricing in an IPO

Reputational Cheap Talk with Misunderstanding

International audienceWe consider a cheap talk game with a sender who has a reputational concern for an ability to predict a state of the world correctly, and where receivers may misunderstand the message sent. When communication between the sender and each receiver is private, we identify an equilibrium in which the sender only discloses the least noisy information. Hence, what determines the amount of information revealed is not the absolute noise level of communication, but the extent to which the noise level may vary. The resulting threshold in transmission noise for which information is revealed may differ across receivers, but is unrelated to the quality of the information channel. When information transmission has to be public, a race to the bottom results: the cut-off level for noise of transmitted information now drops to the lowest cut-off level for any receiver in the audience

Ownership concentration and firm risk: The moderating role of mid-sized blockholders

This study analyzes the relationship between mid-sized blockholders and firm risk. We show that ownership structure matters for firm risk beyond the first largest blockholder. Firms with multiple blockholders take more risk than firms with just one blockholder, even when controlling for the stake of the largest blockholder. Consistent with the diversification argument, we find that firm risk increases by 22% when the number of blockholders increases from one to two. Our results are robust to controlling for blockholder type and firm characteristics. We carry out various robustness checks to tackle endogeneity issues. More generally, we provide evidence that firms’ decisions are affected by mid-sized blockholders and not merely the largest blockholder. This is in line with theoretical predictions

Ownership concentration and firm risk: the moderating role of mid-sized blockholders

This study analyzes the relationship between mid-sized blockholders and firm risk. We show that ownership structure matters for firm risk, beyond the first largest blockholder. Firms with multiple blockholders take more risk than firms with just one blockholder, even when controlling for the stake of the largest blockholder. Consistent with the diversification argument, we find that firm risk increases by 22% when the number of blockholders increases from one to two. Our results are robust to controlling for blockholder type and firm characteristics. We carry out various robustness checks to tackle endogeneity issues. More generally, we provide evidence that firms’ decisions are affected by mid-sized blockholders, and not merely the largest blockholder. This is in line with theoretical predictions

A new proof of evidence of cysteamine quantification for therapeutic drug monitoring in patients with cystinosis

Background To date, measurement of intracellular cystine is used for the therapeutic monitoring of patients affected by cystinosis in treatment with cysteamine. Since this method is time and sample consuming, development of a faster method to quantify cysteamine would be extremely useful in order to help clinicians to adjust dosages of cysteamine and to define better the pharmacokinetic profile of this drug. The aim of the study was to develop a liquid chromatography tandem mass spectrometry method for the quantification of cysteamine in plasma samples and to test its applicability on plasma samples derived from patients with nephropathic infantile cystinosis in treatment with cysteamine. Results The percentage of accuracy of the developed method varied between 97.80 and 106.00% and CV% between 0.90 and 6.93%. There was no carry over. The calibration curves were built from 2.5 to 50 mu M. The limit of detection and the lower limit of quantification occurred at 0.25 and 1.25 mu M respectively. Cysteamine was stable up to 2 months at -20 degrees C. Concentrations of cysteamine and intracellular cystine of 4 patients were in line with data previously reported. Conclusion The proposed method showed an appropriate selectivity, specificity, linearity, sensibility, accuracy, precision and good applicability to samples

A novel inhibitor prevents the peripheral neuroparalysis of Botulinum neurotoxins

Botulinum neurotoxins (BoNTs) form a large class of potent and deadly neurotoxins. Given their growing number, it is of paramount importance to discover novel inhibitors targeting common steps of their intoxication process. Recently, EGA was shown to inhibit the action of bacterial toxins and viruses exhibiting a pH-dependent translocation step in mammalian cells, by interfering with their entry route. As BoNTs act in the cytosol of nerve terminals, the entry into an appropriate compartment wherefrom they translocate the catalytic moiety is essential for toxicity. Herein we propose an optimized procedure to synthesize EGA and we show that, in vitro, it prevents the neurotoxicity of different BoNT serotypes by interfering with their trafficking. Furthermore, in mice, EGA mitigates botulism symptoms induced by BoNT/A and significantly decreases the lethality of BoNT/B and BoNT/D. This opens the possibility of using EGA as a lead compound to develop novel inhibitors of botulinum neurotoxins

Looking for a preventive approach to sexual harassment in academia. A systematic review

The systematic review (PRISMA) on sexual harassment (SH) in academia looks at studies conducted since 2018 with the aim to direct updated research findings toward an effective prevention perspective. The findings confirm that academia is a breeding ground for SH due to power imbalances and that vulnerabilities related to the macro-dynamics of power, social and cultural inequalities are risk factors for SH. It is recommended that SH prevention interventions in academia 1. adopt a socio-ecological perspective; 2. include evidence-based programs such as those dedicated to bystanders; 3. are integrated with each other through valuable networking and multistakeholder involvement and 4. pay attention to support complaints, victim listening and intake activities. Future SH studies should promote: SH standardized definitions, intersectional perspectives, “all targets” surveys, research on protective factors, research on perpetrator perspective. Future interventions should act at the cultural level fighting structural inequality and a greater enhancement of evidence-based programs is required.The systematic review (PRISMA) on sexual harassment (SH) in academia looks at studies conducted since 2018 with the aim to direct updated research findings toward an effective prevention perspective. The findings confirm that academia is a breeding ground for SH due to power imbalances and that vulnerabilities related to the macro-dynamics of power, social and cultural inequalities are risk factors for SH. It is recommended that SH prevention interventions in academia 1. adopt a socio-ecological perspective; 2. include evidence-based programs such as those dedicated to bystanders; 3. are integrated with each other through valuable networking and multistakeholder involvement and 4. pay attention to support complaints, victim listening and intake activities. Future SH studies should promote: SH standardized definitions, intersectional perspectives, "all targets" surveys, research on protective factors, research on perpetrator perspective. Future interventions should act at the cultural level fighting structural inequality and a greater enhancement of evidence-based programs is required