Cross-border and domestic minority acquisitions and financial constraints: Reaping big benefits from small shareholders

Research Question/Issue Do the motivations of cross-border minority acquisitions differ from those of domestic minority acquisitions? We examine and compare the underlying motivations for and consequences of domestic and cross-border minority acquisitions by analyzing data from transactions that took place across 31 countries over a 13-year period. Research Findings/Insights Using a sample of 11,926 domestic and cross-border minority acquisitions, we show that the interplay of financing and country-level governance motives is the main driver of such deals in both settings. We find that financially constrained firms are more likely to engage in both domestic and cross-border minority acquisitions, even in the face of higher information asymmetry and transaction costs that international transactions entail. In the wake of either domestic or cross-border deals, financially constrained firms' long-term debt increases; their short-term debt, cash holdings, and equity decrease. The greater likelihood of minority acquisitions of financially constrained firms is explained by the degree of corporate governance institutions in the country in which the targeted firm is based and by differences in levels of creditor and shareholder protections between the home countries of the targeted and acquiring firms involved. Our results remain robust after controlling for alternative explanations such as the contracting motive, the gravity model of foreign transactions, economic development levels, and differences in tax and exchange rates. Theoretical/Academic Implications Our results extend prior literature on mergers and acquisitions that have focused solely on control transfers or domestic deals. We provide empirical evidence for the importance of jointly considering financing and governance motivations in seeking to explain domestic and cross-border minority acquisitions and their consequences in alleviating financial constraints. We provide new evidence on how firm- and country-level characteristics interact to affect minority acquisitions. Practitioner/Policy Implications Our results offer valuable insights for business policy by highlighting how firms can circumvent financial constraints through partial integration, especially in cross-border settings. The results also offer evidence of beneficial ex post outcomes for targeted firms' leverage and liquidity. In terms of public policy, the results show that minority shareholder protections improve the equity market and provide a positive externality to the debt market through a certification effect

AVALIAÇÃO DO EFEITO DO INSETICIDA MALATHION APLICADO SOB A FORMA DE ULTRA BAIXO VOLUME COM EQUIPAMENTOS PORTÁTIL E PESADO SOBRE Aedes aegypti (Diptera: Culicidae)

Portable and vehicle-mounted space spray machines for chemical control of adult Aedes aegypti were evaluated in São José do Rio Preto and Marília, São Paulo State, Brazil. The effect of both treatments was evaluated through sentinel cages with Ae. aegypti females and the impact on mosquito populations through adult collection inside and outside houses before and after treatments. Results were similar in both cities. The average percentage of mortality of caged mosquitoes inside the houses reached an average of 97.0% for both cities with portable machine and 54.3% with vehicle-mounted machine. Treatment with portable machine caused a mean reduction of percentage of positive houses with Ae. aegypti of 84.3 % and a reduction of mean number of females per house of 77.9%. Treatment with vehicle-mounted machines caused a mean reduction on percentage of positive houses with Ae. aegypti of 49.7% and on the mean number of females/house of 44.7. Data from evaluations show a significant higher impact on mosquito populations with portable machine, especially inside the houses which is the site where most vector females are found.Avaliou-se o efeito da aplicação de inseticida sobre formas adultas de Aedes aegypti realizadaa ultrabaixo volume (UBV) com atomizadores motorizados portáteis e acoplados a veículo. Ostratamentos com ambos os equipamentos foram realizados em São José do Rio Preto e Marília,estado de São Paulo, Brasil. A efetividade foi verificada pela exposição de fêmeas de Ae. aegypti emgaiolas-sentinela. O impacto das aplicações na população adulta do vetor foi avaliado por meio dacoleta de adultos no intradomicílio e peridomicílio antes e após os tratamentos. Os resultados obtidoscom cada equipamento foram semelhantes nas duas cidades. A mortalidade de fêmeas expostas emgaiolas-sentinela, no intradomicílio, atingiu percentual médio de 96,5% nas duas cidades nas áreastratadas com equipamento portátil. Foi de 54,3% o percentual nas áreas tratadas com equipamentoacoplado a veículo. Na avaliação de impacto sobre a população adulta, as coletas revelaram queo equipamento portátil causou redução média de 84,3% na positividade dos imóveis e 77,9% dediminuição no número de fêmeas por imóvel. Com equipamento acoplado a veículo, houve reduçãode 49,7% na positividade de imóveis para fêmeas de Ae. aegypti e de 44,6% no número de fêmeaspor imóvel. Os resultados demonstraram impacto significativamente maior na população adulta comequipamento portátil e também maior mortalidade no intradomicílio, local de maior permanênciadas fêmeas do vetor