This paper is concerned with the nature of ownership, returns and corporate performance and investment behavior in the ‘post-bubble' environment surrounding Japanese firms. Market participants have feared that ‘unwinding' of cross-shareholding would have negative consequences for returns, on...

Since the 2008-09 global financial crisis, banks are criticized for levering up their balance sheets to reach for return on equity (ROE) target. We conduct the first systematic study on banks' actual practice of targeting ROE, based on a unique hand-collected data for 188 publicly listed...

We investigate the cross-sectional predictive relations between stock returns of two public firms with one firm, the parent, owning partial equity of the other, the subsidiary. We find that high past returns of the subsidiary (parent) predict high future returns of the parent (subsidiary). The...

We examine the effects of controlling shareholder stock pledge on corporate acquisition decisions and associated performance. Consistent with our aggravated expropriation hypothesis, we find that pledging firms in China initiate more takeovers, but these acquisitions conducted by pledging firms...

In recent years, stock pledge financing has prevailed in China. Individual shareholders’ stock-pledge announcements often release a signal for financing, thus causing abnormal stock-price fluctuations. Our paper focuses on the pledges by individual controlling shareholders between 2006 and...

Using global cross-firm ownership data, we find that both stock returns and cash-flow news of ownership-linked firms predict focal firm’s returns for all four types of ownership structures: subsidiary−parent, parent−subsidiary, subsidiary−subsidiary, and parent−parent. These results...

We investigate the relation between corporate governance characteristics of hostile takeover targets and the choice to employ 'harmful' resistance that is not perceived as being motivated by shareholders' interests. We find that harmful resistance is associated with firms where managers have...

This study aims to examine the relationship of accounting conservatism, managerial ownership, dividend policy, firm size, leverage, price earnings ratio, price to book value and earnings per share to earnings management. The analysis technique used is multiple linear regressions. The data used...

This paper analyses lawsuits against shareholders' resolutions according to the German Stock Corporation Act (AktG) and the German Reorganisation Act (UmwG). A merger passed at the General Annual Meeting will not move forward as long as any lawsuit is pending with a court. In particular, mergers...

This paper investigates the determinants of the bidder firms shareholders cumulative abnormal returns (CAR) around takeover bid announcement. The study uses a wide range of firm characteristics to determine whether bidder CAR is significantly different between unconditional model and the sample...