[Ias-public] The Institute for Analytical Sociology Seminar: Zhiyan Wu, February 20, 11:00, KO301

[Madelene Töpfer]

The Institute for Analytical Sociology Seminar

Venue: KO301 (3rd floor), Kopparhammaren 2, Norra Grytsgatan 10, Norrköping


Thursday February 20 @11:00

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Opportunity-Driven Expropriation: Intertemporal Prospect and Tunneling Vulnerability

Zhiyan Wu
Erasmus University


Abstract:
We study the probability of firms becoming targets for asset tunneling. Conceptualizing expropriation as an intertemporal choice for controlling shareholders, we propose that a firm's tunneling vulnerability is subject to its intertemporal prospect. Relative to the baseline configuration of aligned long-term than short-term prospects, tunneling a firm with better long-term than short-term prospects creates opportunity costs of foregone dividends, and so is less likely than tunneling a firm with better short-term than long-term prospects. The incentive to extract assets is higher in the latter case, especially in firms where investors exhibit capital patience. We find strong support for our predictions in the population of publicly traded Chinese firms from 1991 to 2017.


Practical Note from Zhiyan Wu:
If you are investing in stock markets or have plans to do so in the future, this seminar will equip you with knowledge of how to protect yourself as a minority shareholder.



The seminar is open for everyone. Coffee and tea is provided.


Best regards
Madelene Töpfer
Administrator

[Linköping University]
Institute for Analytical Sociology
S-601 74 Norrköping
Phone: +46 (0)11-36 32 91
Mobile: +46 (0)700 89 66 97
Visiting address: Kopparhammaren 7, Kungsgatan 56D, Campus Norrköping
Please visit us at liu.se<https://liu.se/>


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