SEC Rule10b5-1 plans are intended to limit the ability of insiders to trade opportunistically. We study insider stock sales by CEOs both under and outside of these plans. While both groups exhibit ...opportunism, this behavior is more limited in plan sales and non-plan sales in well-governed firms. Furthermore, opportunism in plan sales is greater for transactions representing a larger fraction of the CEO's firm-related wealth. CEOs can circumvent the intent of Rule 10b5-1 by exercising their discretion over financial reporting and real earnings management and appear to benefit from material nonpublic information by selectively cancelling plans or using limit orders.
We present 850 and 450 m observations of the dense regions within the Auriga-California molecular cloud using SCUBA-2 as part of the JCMT Gould Belt Legacy Survey to identify candidate protostellar ...objects, measure the masses of their circumstellar material (disk and envelope), and compare the star formation to that in the Orion A molecular cloud. We identify 59 candidate protostars based on the presence of compact submillimeter emission, complementing these observations with existing Herschel/SPIRE maps. Of our candidate protostars, 24 are associated with young stellar objects (YSOs) in the Spitzer and Herschel/PACS catalogs of 166 and 60 YSOs, respectively (177 unique), confirming their protostellar nature. The remaining 35 candidate protostars are in regions, particularly around LkH 101, where the background cloud emission is too bright to verify or rule out the presence of the compact 70 m emission that is expected for a protostellar source. We keep these candidate protostars in our sample but note that they may indeed be prestellar in nature. Our observations are sensitive to the high end of the mass distribution in Auriga-Cal. We find that the disparity between the richness of infrared star-forming objects in Orion A and the sparsity in Auriga-Cal extends to the submillimeter, suggesting that the relative star formation rates have not varied over the Class II lifetime and that Auriga-Cal will maintain a lower star formation efficiency.
Context. The physical origin behind organic emission lines in embedded low-mass star formation has been fiercely debated over the last two decades. A multitude of scenarios have been proposed, from a ...hot corino to PDRs on cavity walls to shock excitation. Aims. The aim of this paper is to determine the location and the corresponding physical conditions of the gas responsible for organics emission lines. The outflows around the small protocluster NGC 2071 are an ideal testbed that can be used to differentiate between various scenarios. Methods. Using Herschel-HIFI and the Submillimeter Array, observations of CH3OH, H2CO, and CH3CN emission lines over a wide range of excitation energies were obtained. Comparisons to a grid of radiative transfer models provide constraints on the physical conditions. Comparison to H2O line shape is able to trace gas-phase synthesis versus a sputtered origin. Results. Emission of organics originates in three separate spots: the continuum sources IRS 1 (“B”) and IRS 3 (“A”) and a new outflow position (“F”). Densities are above 107 cm-3 and temperatures between 100 K and 200 K. CH3OH emission observed with HIFI originates in all three regions and cannot be associated with a single region. Very little organic emission originates outside of these regions. Conclusions. Although the three regions are small (<1500 AU), gas-phase organics likely originate from sputtering of ices as a result of outflow activity. The derived high densities (>107 cm-3) are likely a requirement for organic molecules to survive from being immediately destroyed by shock products after evaporation. The lack of spatially extended emission confirms that organic molecules cannot (re-)form through gas-phase synthesis, as opposed to H2O, which shows strong line wing emission. The lack of CH3CN emission at “F” is evidence for a different history of ice processing because of the absence of a protostar at that location and recent ice mantle evaporation.
We study the impact of the Domestic Production Activities Deduction (DPAD) on mergers and acquisitions. DPAD reduces corporate tax rates on income from work or goods made in the U.S. Results indicate ...that the quantity and quality of acquisition bids by DPAD-advantaged firms conform to the predictions of the neoclassical theory of the firm and the theory of financial constraints. Specifically, bids, particularly those cash-financed, increase substantially in industries with large DPAD-related tax cuts and for firms with financial constraints. Moreover, DPAD improves acquisition quality where acquirers and targets are likely to generate incremental DPAD tax benefits through their merger.
•We empirically examine the effect of the Domestic Production Activities Deduction (DPAD) on mergers and acquisitions (M&A).•Using difference-in-differences methods, we find that firms with higher DPADs execute more and better M&A deals on average.•The greater number and improved quality of deals is particularly true of all-cash deals.•Our results support predictions from neoclassical M&A theory and the theory of financial constraints.•We show that modest tax rate changes can have a substantial effect on acquisition activity and quality.
Disloyal Managers and Shareholders’ Wealth Fich, Eliezer M; Harford, Jarrad; Tran, Anh L
The Review of financial studies,
05/2023, Letnik:
36, Številka:
5
Journal Article
Recenzirano
Abstract
A duty of loyalty prohibits fiduciaries from appropriating business opportunities from their companies. Starting in 2000, Delaware, followed by several other states, allowed boards to waive ...their duty. We show that public firms covered by waiver laws invest less in R&D, produce fewer and less valuable patents, and exhibit abnormally high inventor departures. Remaining innovation activities contribute less to firm value, a fact confirmed by the market reaction when firms reveal their curtailed internal growth opportunities by announcing acquisitions. Consistent with the laws’ intent to provide contracting flexibility to emerging firms, we find evidence of positive impacts for small firms.
Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.
Abstract
This paper presents observations of the Lupus I molecular cloud at 450 and 850 μm with Submillimetre Common User Bolometer Array (SCUBA-2) as part of the James Clerk Maxwell Telescope Gould ...Belt Survey (JCMT GBS). Nine compact sources, assumed to be the discs of young stellar objects (YSOs), 12 extended protostellar, pre-stellar and starless cores, and one isolated, low-luminosity protostar, are detected in the region. Spectral energy distributions, including submillimetre fluxes, are produced for 15 YSOs, and each is fitted with the models of Robitaille et al. The proportion of Class 0/I protostars is higher than that seen in other Gould Belt regions such as Ophiuchus and Serpens. Circumstellar disc masses are calculated for more evolved sources, while protostellar envelope masses are calculated for protostars. Up to four very low luminosity objects are found; a large fraction when compared to other Spitzer c2d regions. One YSO has a disc mass greater than the minimum mass solar nebula. 12 starless/protostellar cores are detected by SCUBA-2 and their masses are calculated. The stability of these cores is examined using both the thermal Jeans mass and a turbulent virial mass when possible. Two cores in Lupus I are super-Jeans and contain no known YSOs. One of these cores has a virial parameter of 1.1 ± 0.4, and could therefore be pre-stellar. The high ratio of Class 0/I to Class III YSOs (1:1), and the presence of a pre-stellar core candidate, provides support for the hypothesis that a shock recently triggered star formation in Lupus I.
The reciprocal interlocking of chief executive officers is a non-trivial phenomenon: among large companies in 1991, about one company in seven was in a relationship whereby the CEO of one company sat ...on a second company's board and the second company's CEO sat on the first company's board. We develop hypotheses to distinguish whether this practice furthers the interests of shareholders or the private interests of the CEOs. Using a sample of large companies, we employ a probit model to test these hypotheses. Our empirical findings are that these reciprocal CEO interlocks primarily benefit the CEOs rather than their shareholders.
We report the first detection of the ground-state rotational transition of the methylidyne cation CH+ towards the massive star-forming region DR 21 with the HIFI instrument onboard the Herschel ...satellite. The line profile exhibits a broad emission line, in addition to two deep and broad absorption features associated with the DR 21 molecular ridge and foreground gas. These observations allow us to determine a 12CH+J = 1–0 line frequency of ν = 835 137 ± 3 MHz, in good agreement with a recent experimental determination. We estimate the CH+ column density to be a few 1013 cm-2 in the gas seen in emission, and >1014 cm-2 in the components responsible for the absorption, which is indicative of a high line of sight average abundance CH+ /H > 1.2 × 10-8. We show that the CH+ column densities agree well with the predictions of state-of-the-art C-shock models in dense UV-illuminated gas for the emission line, and with those of turbulent dissipation models in diffuse gas for the absorption lines.
We study firms adopting stock‐option plans for outside directors in a sample ofFortune1000 firms from 1997 to 1999. Fixed‐effects models accounting for self‐selectivity bias indicate that companies ...with such plans have higher market‐to‐book ratios and profitability metrics. Option plan adoptions generate positive cumulative abnormal returns (CARs) and favorable revisions in analysts' earnings forecasts. Outside director appointments produce CARs close to zero for firms with option plans but significantly negative CARs for firms without them. We conclude that such stock‐option plans help align the incentives of outside directors and shareholders, thereby improving firm value.
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