We investigate whether controlling shareholders expropriate corporate resources during a financial crisis using the data of Thai firms. Our results are consistent with the argument of Friedman, Johnson, and Mitton (2003) that the propensity to tunnel and prop is higher for business groups in particular if they are organized in pyramids. Specifically, we find that firms that belong to the top 30...

Existing models of financial instability tend to be based on top-down, partial-equilibrium views of markets and their interactions; they are unable to incorporate the complexity of behavior among heterogeneous firms or the tendency for all types of firms to change their behavior during a crisis. This paper argues that agent-based models (ABMs)—which seek to explain how the behavior of individua...

We ask how export demand shocks associated with the Asian financial crisis affected Chinese exporters. We construct firm-specific exchange rate shocks based on the precrisis destinations of firms’ exports. Because the shocks were unanticipated and large, they are a plausible instrument for identifying the impact of exporting on firm productivity and other outcomes. We find that firms whose expo...

Countering the widely-held view that CEO succession is generally beneficial in turnaround situations, we adopt an executive fit/refit logic, proposing that the implications of CEO replacement depend integrally on the incumbent’s degree of misfit and the successor’s degree of fit to the contextual conditions at hand. Drawing from prior turnarounds research, we identify several prominent forms of...

In this paper, we provide a re-examination of the exchange rate exposure and foreign currency derivative use by Australian resources firms in the 2006–2009 period which is characterized by increased volatility caused by the global financial crisis. In particular, we consider the interaction of a resources firm’s exchange rate risk exposures, foreign currency derivative use and the global financ...

The problem and the solution. Most executives are aware of the negative consequences associated with an organizational crisis and focus on communications and public relations as a reactive strategy. However,many neglect the other leadership responsibilities associated with organizational crises.This may result from lack of formal training and on-the-job experiences that prepare executives to le...

In this study, we explore how customers’ WOMs in firms’ crisis events spread across organizational boundaries to affect their supply chain partners. Based on guilt-by-association theory, we propose that both the external WOM effect and internal demand-supply effect have a mediator influence on the relationship between news report of crisis and firm performance of its supply chain partners. In o...

Prior research suggests that supply chain collaboration has enabled companies to compete more efficiently in a global economy. We investigate a class of collaboration software for product development called collaborative product commerce (CPC), and estimate its impact on product quality, design cycle time and development cost. We develop a theoretical framework to study the impact of CPC on pro...

the purpose of this paper is a study on the effect of cash flows on the gap between actual and optimal financial leverage ratio companies listed in tehran stock exchange. in this regard, we try to help with advanced econometric techniques such as partial adjustment model on panel data and generalized method of moments to achieve a reasonable estimate of the impacts.in this paper, were analyzed ...