21 research outputs found
CEOs with international experience under weak institutions
In the context of the globalization of human capital, this thesis examines the
role of CEOs with international experience, known as returnee CEOs. The first essay
argues that that CEOs’ international expertise is acquired at the opportunity cost of
local social capital, such as political and business ties, which is more critical than
expertise in transition economies with weak legal institutions. Based on the sample
of 2847 CEOs appointments in China, I find that returnee CEOs are associated with
inferior performance, lower market reactions to appointment announcements and an
adverse regulatory environment. The negative relation disappears when social capital
is acquired, regional legal institutions are strong or returnees’ international expertise
is in demand. Exploiting an exogenous increase in the supply of returnee talent as a
result of new provincial policies, I find the results consistent. The second essay
examines the returnee CEOs in newly public entrepreneurial firms that are in
transition period. I propose that returnee CEOs possess the tacit knowledge of
foreign advanced legal institutions, which can help entrepreneurial firms overcome
the formalization challenges they face in getting listed. The results based on 355
newly public Chinese entrepreneurial firms indicate that returnee CEOs, especially
those who have returned from countries with advanced legal institutions are
associated with superior post-IPO performance. In addition, foreign venture capitals
(VCs) are found to strengthen the positive impact of returnee CEOs, especially when
both VCs and CEOs are from countries with advanced institutions. In the third essay,
I examine returnee CEOs’ managerial decision of listing location. Based on the
sample of IPOs of Chinese entrepreneurial firms, I find that returnee CEOs are more
likely to undertake foreign IPOs, especially for entrepreneurial firms operating in
high-tech industries, until the credibility crisis of US-listed Chinese firms was
triggered by Muddy Water Research in 2011. Overall, this thesis provides original
evidence on the impact of international experience of CEOs and makes important
implication on the benefits realization of brain gains in countries with weak legal
institutions
Athletes in boardrooms:Evidence from the world
International audienceThis study examines the relation between the athletic experience of board directors and corporate outcomes. We predict that athletes’ attributes, such as physical fitness, mental resilience, leadership, and team-working skills, enhance their monitoring role. Using a large sample from 71 countries, we find that athletic experience is associated with better firm performance. The benefits are more pronounced when the experience is of team sports and confrontational sports, and for firms experiencing financial crisis. The results remain consistent when we instrument the athletic experience of directors with the number of Olympic medals won and Olympic sports participated in by the country in question at the previous Olympic Games
The burden of attention:CEO publicity and tax avoidance
We use search volume index (SVI) for a CEO’s name and stock ticker from Google Trends to measure CEO publicity, and examine the competing hypotheses on its relation to tax avoidance. On the one hand, CEOs who receive more attention from retail investors may engage in tax evasion activities to meet investors’ performance expectations; on the other hand, they are more concerned with public image and avoiding being labeled as tax avoiders. Based on the CEOs of S&P 500 firms between 2004 and 2011, our finding supports the former and shows that CEOs with higher publicity manage to have a lower effective tax rate and cash effective tax rate. Such effect is moderated by board independence. Finally, firms with higher CEO publicity pay auditors higher tax fees, suggesting that these CEOs tend to use more tax planning services from auditors
The legacy of wars around the world:Evidence from military directors
International audienceThis study estimates the effects of wars on countries and firms. We first show immediate negative effects of wars on economic and financial development as well as legal institutions. Using a cross-country sample of 93,697 firm-year observations, we further argue and show that (i) wars increase the supply of military directors in corporate boards; and(ii) military directors reduce firm performance as measured by Tobin’s Q and return on assets (ROA). We interpret these lingering effects as military directors possessing social capital but lacking business expertise. Our results are robust to a matched sample, a lagged difference model, a dynamic general method of moments model and to the control of country, industry and year fixed effects
Case report: Urothelial injury in a female with breast cancer: a rare adverse event after the combination of paclitaxel and trastuzumab
Several breast cancer (BC) patients showed urinary tract infection after adjuvant trastuzumab plus paclitaxel, but no case of urothelial injury has been reported. In this case, we report a 47-year-old female patient with stage I invasive ductal carcinoma in the left breast presenting with urothelial injury after the combination of trastuzumab and paclitaxel. Initially, the patient was highly suspected of having urinary tract infection as she showed abdominal and low back pain, as well as urinary irritation symptoms and hematuria. Unfortunately, the conditions were not attenuated after anti-infection therapy. Contrast-enhanced CT showed extensive exudation and edema in the bilateral renal pelvis, ureter, and bladder, together with dilatation and effusion in the renal pelvis and ureter. Cystoscopy showed extensive congestion, edema, and erosion in the bladder epithelium. Pathological analysis demonstrated slight thinning or even loss in the uroepithelial cell layer and interstitial congestion. In addition, there was growth arrest in the epithelial cells. Immunohistochemistry indicated HER2 expression in the urothelial cells. Finally, the patient was diagnosed with urothelial injury after combination of paclitaxel and trastuzumab. The symptoms were spontaneously cured with no administration of any antibiotics in the 3-month follow-up
CEO international experience and foreign IPOs
International audienceThis paper examines listing location as a managerial decision by using a sample of IPOs of Chinese entrepreneurial firms in mainland China, the United States and Hong Kong. We find that Chinese entrepreneurial firms managed by CEOs with international experience are more likely to undertake foreign IPOs, especially those returned from countries with more advanced legal institutions and those operating in high-tech industries. The credibility crisis for Chinese firms in 2010 switched the focus of foreign IPOs from the US to Hong Kong. These results are consistent across returnee CFOs and other senior executives with international experience
Do board secretaries influence management earnings forecasts?
The role of board secretaries is a unique institutional
feature in China. Individuals in this senior executive
role are responsible for coordinating information
disclosure. We study the impact of board secretaries on
management earnings forecasts and find that their legal
expertise, accounting expertise and foreign experience help
improve management earnings forecast quality. The quality
of forecasts, as indicated by their occurrence, frequency,
precision and accuracy, is also positively associated with
the role duality (e.g. board director, CFO or other senior
executive role) and equity holdings of board secretaries and
negatively associated with their political connection. The
quality of forecasts is found to increase the compensation
of board secretaries. Finally, we show that the equity
holding of board secretaries reduces litigation risks and
increases corporate philanthropic giving