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Full-Text Articles in Business
Contracting In Direct Asset Sales, Xin Yuan
Contracting In Direct Asset Sales, Xin Yuan
Dissertations, Theses, and Capstone Projects
Using a unique, hand-collected dataset of direct asset sales agreements in the SEC filings, I provide the first large-sample evidence on how contracting mechanisms are used to mitigate information frictions in these important transactions. The conflict of interests is unique because the scarcity of asset-specific financial information makes target assets difficult to value and monitor, especially when such transactions are usually consummated in a short period. I first show an extensive use of representations and warranties, covenants, and special payment arrangements in these contracts when severe information asymmetry exists between buyers and sellers. Importantly, further results suggest that these contracting …
Quid Pro Quo? The Sec Oversight Enforcement And Corporate Lobbying, Daeun Lee
Quid Pro Quo? The Sec Oversight Enforcement And Corporate Lobbying, Daeun Lee
Dissertations, Theses, and Capstone Projects
Due to the private nature of its internal investigations, research on the SEC oversight enforcement is limited. By distinguishing between enforcement staff’ decision to open an investigation (investigation decision) and commissioners’ authorization of an enforcement action (enforcement decision), this study is the first to examine how these two decisions interplay to overcome the political capture while fulfilling the SEC’s mission to protect investors. First, I do not find evidence that investigation decision is influenced by firms’ political connections, whereas enforcement decision is affected by firms’ lobbying efforts. Collectively, my results imply that there exists a misalignment …
Buying Products From Whom You Know: Personal Connections And Information Asymmetry In Supply Chain Relationships, Ting Chen, Hagit Levy, Xiumin Martin, Ron Shalev
Buying Products From Whom You Know: Personal Connections And Information Asymmetry In Supply Chain Relationships, Ting Chen, Hagit Levy, Xiumin Martin, Ron Shalev
Publications and Research
This study investigates the role personal connections play in a crucial element of the supply chain—supplier selection. We find that the likelihood that a potential supplier (hereafter, a vendor) is selected to be an actual supplier (hereafter, supplier) increases when personal connections between executives of the vendor and the customer exist. The magnitude of the effect varies predictably across management ranks and positions and is stronger when information asymmetries between a vendor and a customer are high. Conditioning on the existence of a supply-chain partnership, a departure of a personally connected executive prompts the termination of the supply-chain relationship more …