Stouthuysen, Kristof; Van den Abbeele, Alexandra; Van der Meer-Kooistra, Jeltje; Roodhooft, Filip (Elsevier, 2019)
Management control (MC) design is crucial to the success of buyer-supplier relationships, yet we know little about how a buying company designs the management controls (MCs) of such relationships over time. In this paper, we use data collected in a six-year field study on the design of the MCs of a new facilities management (FM) outsourcing relationship. We find that boundary spanners learn to control in multiple ways, including trial and error, advice from third parties, experimentation, cross-level learning (i.e., corporate boundary spanners learning from operating boundary spanners), and advice from the partner. Moreover, the role of boundary spanners influences their focus of learning attention, with corporate boundary spanners focusing more on strategic aspects of the relationship (such as reducing appropriation concerns), and operating boundary spanners focusing more on FM activities and the coordination problems related to these activities. The lessons learned by both types of boundary spanners lead to the design of different types of control.
We investigate the takeover strategies of high default risk acquirers and their value impact. We find that these bidders select bigger, less profitable and unrelated targets, pursue transactions during recessions, and pay with shares by offering target shareholders high premiums. Their long-term buy-and-hold returns are extremely negative, and reflect fundamentally their substantial drop in profitability combined with high leverage. We show that the well-established long-run under performance of acquiring firms is largely driven by this sub-set of acquirers. The results are similar when we use alternative measures of default risk and performance, and a global sample of non-US bidders.
Cumming, Douglas; Deloof, Marc; Manigart, Sophie; Wright, Mike (Elsevier, 2019)
Entrepreneurial finance is a distinctive aspect of corporate finance, notably with respect to informational asymmetries and investor involvement in portfolio companies. Entrepreneurial finance research has explored four levels of analysis: the entrepreneur or entrepreneurial firm, the organization providing finance to the entrepreneurs, the organizations providing funds to these organizations, and the region or country in which the entrepreneurial firms or investors are established. We discuss recent developments in forms of entrepreneurial finance. We summarize the contributions of the papers published in this issue on entrepreneurial finance at different points in the life cycle, including work on trade credit, debt finance, micro-cap IPOs, venture capital, and angel finance. Also, we highlight avenues for future research focusing on funding gaps, accelerators, crowdfunding, secondary buyouts, boards, and exits.
Barakat, Ahmed; Ashby, Simon; Fenn, Paul; Bryce, Cormac (Elsevier, 2019)
Operational risk announcements are unexpected adverse media news that potentially harm the reputation of financial institutions. This paper examines the equity-based and debt-based reputational effects of financial sentiment tones in operational risk announcements and shows how such reputational effects are moderated by alternative sources of public information. Our analysis reveals that the net negative tone and litigious tone have adverse reputational effects, and the uncertainty tone mitigates the adverse reputational impact. Additionally, alternative, simultaneous sources of information neutralize the reputational effects of textual tones. First, third-party information about the event (i.e. regulatory announcements and final settlements) dissolves the favorable (adverse) reputational impact of the uncertainty tone (litigious tone). Second, loss amount disclosure and firm recognition substitute the reputational effects of the net negative tone and uncertainty tone only in Anglo-Saxon countries and market-based economies. Overall, our findings indicate that the reputational effects of the media materialize most when there is lack of certain, quantifiable and regulated public information about the operational risk event.
Export search results
The export option will allow you to export the current search results of the entered query to a file. Different
formats are available for download. To export the items, click on the button corresponding with the preferred download format.
By default, clicking on the export buttons will result in a download of the allowed maximum amount of items.
To select a subset of the search results, click "Selective Export" button and make a selection of the items you want to export.
The amount of items that can be exported at once is similarly restricted as the full export.
After making a selection, click one of the export format buttons. The amount of items that will be exported is indicated in the bubble next to export format.