Creditor rights and corporate risk-taking
ABSTRACT We analyze the link between creditor rights and firms’ investment policies, proposing that stronger creditor rights in bankruptcy reduce corporate risk-taking. In cross-country analysis, we find that stronger creditor rights induce greater propensity of firms to engage in diversifying acquisitions, which result in poorer operating and stock-market abnormal performance. In countries with strong creditor rights, firms also have lower cash flow risk and lower leverage, and there is greater propensity of firms with low-recovery assets to acquire targets with high-recovery assets. These relationships are strongest in countries where management is dismissed in reorganization, and are observed in time-series analysis around changes in creditor rights. Our results question the value of strong creditor rights as they have an adverse effect on firms by inhibiting management from undertaking risky investments.
Article: Infantile umbilical hernia.[Show abstract] [Hide abstract]
ABSTRACT: Two types of hernia appear to exist, a direct, cogenital type and an oblique indirect, acquired type. The congenital type will, in almost all instances, disappear by the age of three years, regardless of its size. It is unlikely that the indirect type of hernia will disappear; on the contrary, it is more likely to progress and become larger. It will, therefore, most probably require surgical repair. It is rarely possible to distinguich the two types at clinical examination, unless the hernia is quite large, but persistence after three years favors the oblique type, as does also marked downward displacement of the umbilicus with a clinical appearance of herniation descending from above. Since strangulation is a rarity in congenital umbilical hernia, operation is not warranted until the age of three years. Thereafer, the hernia is unlikely to disappear on its own. It is postulated that the wide variations in reported incidence, as compared with the figures in this study, may be ascribed to methods of patient selection. There was clear evidence of hernia in all instances in the present series; other workers have used less rigid criteria, for example, a defect admitting the finger was regarded as diagnostic of an umbilical hernia.Surgery, gynecology & obstetrics 03/1980; 150(2):187-92.