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We establish a link between supply chain finance (SCF) and capital structure adjustment by core firms through a data set of listed firms on the Shanghai and Shenzhen Stock Exchanges. We find that SCF can significantly speed up capital structure adjustment, especially for the under-leveraged firms. Enhanced financial strengths and competitive advantages underlie this impact. Comprehensive examinations also suggest that SCF may speed up cash turnovers, lower financing costs, and improve firm values. In addition, the impact is more substantial on firms of smaller sizes, located in better-developed regions, those without bank–firm connections, and those with higher environmental dynamism. However, the impact seems similar on private firms and state-owned enterprises (SOEs), or across industries of various degrees of competition. Our findings bear such policy implications that SCF can accelerate capital structure adjustment and contribute to the quality economic growth in emerging markets. JEL Classification: G31, G32, O33

PurposeThis paper aims to study the impact of external fairness of executive compensation on M&A premium, and examine the moderate role of institutional investors. The high M&A premium is the main factors that induce the huge impairment of listed companies’ goodwill and the plummeting performance. Executives are the decision-makers of M&As, and their decision-making process is inevitably affected by the psychological factors. In recent years, institutional investors have become an important external force that can affect the governance of listed companies.Design/Methodology/ApproachThe authors use M&A data of listed companies from 2008 to 2018 and use OLS regression to test the relationship between executive compensation fairness and M&A premium.FindingsThe results show that the lower the external fairness of executive compensation, the greater the M&A premium. Institutional investors can effectively reduce the impact of external compensation unfairness on M&A premiums. The mechanism tests show that executives' psychological perception of fairness induced by external unfairness reduces their motivation to work and prompts them to use high premium to seek alternative compensation incentives. Further examinations of executive characteristics and corporate characteristics show that the role of external unfairness in executive compensation in driving M&A premiums is more pronounced in companies with longer executive tenure, weaker executive reputation incentives and private property.Originality/ValueThis paper enriches the research on the pre-factors of M&A premiums from the perspective of executives’ psychological perception of fairness, provides evidence that institutional investors play a positive governance role and provides decision-making references for companies to take corresponding measures to reduce M&A premium risks.

Degradation and defect evolution in GaN-based UV LEDs under 3 MeV proton irradiation were throughly investigated in this work. Combined with the yellow luminescence band at ∼2.2 eV in photoluminescence spectra with the energy level of Ev + 0.16 eV extracted by deep-level transient spectroscopy measurement, an intrinsic CN-related defect with an abnormally decreased concentration after irradiation was identified. Based on energy levels, the spatial configuration of defects, and their correlations, several possible origins and evolution processes of the defects are systematically discussed. A defect evolution model under proton irradiation was established: C atoms departed from the CN-related defect aligned along the dislocation in the active region stimulated by the displacement damage effect, leaving behind a nitrogen vacancy (VN) aligned along the dislocation, accompanied by the generation of a non-interacting carbon interstitial (Ci). Both the increased VN and Ci were found to contribute jointly to the decrease in optical power and the increase in leakage current. This indicates that carbon—a common unintentional dopant in GaN-based optical devices—can be an important factor in the degradation of GaN-based UV LEDs under proton irradiation, and should be further noted in radiation resistance applications.

China’s historical mixed-ownership reform (the Reform) has prioritized enhancing the efficiency and financial performance of its large state-owned enterprises (SOEs) through introduction of partial private-sector equity ownership. However, the presence of a significant gap between China’s private enterprises’ corporate social responsibility (CSR) practices and those of its SOEs suggests potential for Reform-related ownership changes to negatively impact economy-wide CSR performance. We therefore examine the Reform’s impact on private acquirer firms’ CSR practices. We use a proprietary data set of firms listed on the Shanghai and Shenzhen Stock Exchanges, covering the 2011–2015 period. Our findings identify that private firms can enhance their economic and political status through acquiring equity in state-controlled or SOEs and, following this, improve their CSR practices. Our findings have policy implications in the context of the world’s largest emerging market and, more generally, for SOE ownership reform in emerging and transition economies. Refereed/Peer-reviewed

Purpose Based on the perspective of cognitive psychology, this paper takes the M&A events of Chinese A-share listed enterprises from 2008 to 2015 as the research samples, and then empirically analyzes the influence of managerial overconfidence on M&A premium under the special circumstances in China and tests the moderating effect of debt capacity between managerial overconfidence and M&A premium. Design/methodology/approach This paper selects the M&A events of all A-share listed enterprises from 2008 to 2015 as the total samples. In view of the fact that the data in this paper are unbalanced panel data, so this paper uses the LR test, LR test and Hausman test to filter the mixed OLS model, fixed effect model and random effect model. Finally, using the random effect model for empirical testing reduces the endogeneity of the model. Findings The study shows that managerial overconfidence is positively correlated with M&A premium; at the same time, compared with the state-owned enterprises, the relationship between managerial overconfidence and M&A premium is more significant in private enterprises. Further study shows that debt capacity can strengthen the relationship between managerial overconfidence and M&A premium, to be specific, the larger the debt capacity is, the stronger the positive relationship between managerial overconfidence and M&A premium will be. Moreover, after considering the influence of agency cost and financing expense, and conducting endogenous test and robust test, this research’s conclusions remain the same. Research limitations/implications This research also has some limitations. Some M&A announcements are incomplete, and the target has more information missing, resulting in a decrease in the number of samples, which may affect the accuracy of the conclusions. This paper does not address the research of the economic consequences of M&A, namely, the impact of managerial overconfidence and debt capacity on M&A performance. This is one of the future research directions for this paper. Practical implications The conclusions of this paper provide new theory evidence for Chinese enterprises' M&A decision-making. Social implications First, enterprises should gradually improve corporate governance structure and governance mechanisms to guide more stakeholders to participate in corporate governance, and also they should strengthen the pre-evaluation, in-process control and post-supervision of managers' behavioral decisions to prevent irrational M&A caused by managerial overconfidence. Especially in private enterprises, this issue should be paid more attention. Second, enterprises should make full use of the debt governance function of creditors and improve the creditors' supervision mechanism for managers' decision-making behavior. Originality/value The innovation value and increment contribution of this paper may include the following aspects: the conclusions of this paper expand the research boundary of the relationship between managerial overconfidence and M&A premium, and enrich related literature about debt capacity and the influence of debt capacity on M&A decision-making, and also provide new theory evidence for Chinese enterprises' M&A decision-making. In a word, this research is a beneficial supplement and extension for existing research.

Green merger and acquisition (M&A) activities may improve heavy polluters' regulatory and organisational legitimacy, allowing greater access to resources and enhancing risk-taking capacity. Adopting a proprietary 2008-2013 data set,we examine outcomes from green M&A for China's heavy-polluting firms. We find that heavy polluters' green M&A is associated with greater risk-taking.Greater access to resources, and reduced financing constraints and tax liabilities suggest improved legitimacy. These effects are positively related to state ownership and government intervention in the M&A process. Our findings support the Porter hypothesis and have policy implications for green management of heavy polluters in emerging markets. Refereed/Peer-reviewed

China has recently launched a historical mixed ownership reform. We examine both imprintingand peer effects in private takeovers of state ownership through a proprietary dataset of listedfirms on the Shanghai and Shenzhen Stock Exchanges. Our findings suggest that first experienceaffects private firm's takeover decisions, in that negative experience of either poor post-takeoverperformance or high takeover premium impedes subsequent takeovers. In addition, private firm'spolitical ties alleviate the negative imprinting effect. However, private firms' business tiesstrengthen the negative imprinting effect. Private firms without antecedent experience tend tofollow their peers in taking over state ownership. Antecedent failures can therefore be passed bythe peers to potential acquirers. Our findings have policy implications in the context of China'sconcurrent state-owned enterprise (SOE) reforms. Refereed/Peer-reviewed