Using a sample of asset sell-off transactions from January 1990 to April 2010, we find that the method of payment used in asset sell-off transactions is associated with several characteristics cited in the acquisitions research that reflect cash constraints of the bidder. Specifically, bidders facing more stringent cash constraints are more likely to use equity when purchasing assets, while sellers subjected to cash constraints prefer cash when selling assets. Second, we find that the variation in method of payment among asset sell-off transactions also is partially explained by variables representing asymmetric information. Third, we apply our model to an expanded sample that includes non-U.S. sellers of assets and find that an equity payment is more likely when sellers are based in countries that have relatively high country risk (more government restrictions), weak shareholder rights, and a weak legal system. Thus, it appears that bidders prefer that sellers share in the risk of the transaction under these conditions.
Using hand‐collected news headlines for a large sample of listed firms in China over a period of 2000–2015, we investigate the cross‐sectional relation between media coverage and stock returns. Our results document that no‐media coverage stocks earn 55 basis points a month higher than stocks that are featured in the media. This result is robust after controlling for common risk factors and is not driven by short‐run return reversals. Further analysis provides evidence to support the investor recognition hypothesis, suggesting that mass media may play an incremental role in providing a supplement to traditional channels of information dissemination. Therefore, results in this paper are of interests to both investors and regulators on drivers of stock returns.
The COVID-19 pandemic is damaging economies across the world, including financial markets and institutions in all possible dimensions. For banks in particular, the pandemic generates multifaceted crises. This is likely to be worse in developing economies with poor financial market architecture. Innovation is considered an important factor in organizational effectiveness and competitive advantage post-COVID-19. Understanding how the banking system can improve their innovation capabilities is an unsolved question, especially in an emerging economy. Hence, this paper aims to examine the impact of capital budgeting, knowledge management, and business strategy on innovation capabilities in the Vietnamese banking sector post-COVID-19. More specifically, this study investigates the moderating role of corporate governance in strengthening these proposed impacts. This research uses a sample of 23 listed banks in Vietnam to examine the moderating role of corporate governance in the context of an emerging country. Hierarchical regression analysis and the multiple indicator approach are employed. The results indicate that knowledge management and business strategy significantly impact innovation capabilities while capital budgeting has no effect. Corporate governance has been revealed as the moderator of the relationship between two factors (knowledge management and business strategy) and innovation capabilities.
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