Matthew D. Cain’s research while affiliated with University of California System and other places

... As the subject of criminal law relations, the State has the right to pass through law enforcement bodies to investigate criminal liability and apply criminal coercive measures to the subjects of a crime. On the basis of scientific arguments, the nature of the criminal liability of a commercial legal entity is also the state's condemnation of a criminal act committed by the commercial legal entity, reflecting the relationship between a state and a legal entity that has committed a crime through the state's right to declare dangerous acts committed by a commercial legal entity as a crime and has the right to apply criminal measures (including penalties and judicial measures) to that commercial legal entity in order to protect the legal order and to educate people to be aware of the law [9][10][11][12][13][14][15]. ...

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Criminal Liability of Commercial Legal Entity in Vietnamese Law

... These tightened nonprice contract terms signify that the economic effect of LGP on the effective cost of bank loans is likely even higher than that implied solely by the loan spread. Finally, we document that external corporate governance mechanisms, which enhance earnings quality (Velury and Jenkins 2006) and increase the threat of takeover (Cain, McKeon, and Solomon 2017), play a pivotal role in reducing the cost of bank loans. More importantly, these mechanisms also attenuate the positive influence of local gambling preferences on the cost of bank loans. ...

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Gambling preference, information risk, and the pricing of bank loans

... Collectively, their results run counter to the notion that the court ruling bolstered managerial entrenchment. Lastly, Cain et al. (2014) report that a firm's probability of being acquired through hostile means increased following poison pill validation by law and state statues (although their results primarily capture the Moran v. Household decision and they did not consider subsequent Delaware rulings). In sum, there is no direct evidence to suggest that on the whole, poison pills entrench managers. ...

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The Effect of Poison Pill Adoptions and Court Rulings on Firm Entrenchment

... From a traditional finance perspective, corporate governance is related to corporate financing, whereby companies are seen as a governance mechanism for a set of contracts with providers of funds. Corporate governance deals with how capital providers or shareholders control managers and ensure that managers maximise their wealth (Cain et al. 2015). ...

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The Integrated Governance Model: A Case Study of HP-Pertubuhan Peladang Kawasan

... Hotchkiss, Smith, and Strömberg (2012) find that buyout-sponsored companies are not more likely to default on their loans and are more likely to survive following bankruptcy, everything else being equal. Cain, Davidoff, and Macias (2012) provide evidence that some PE firms do suffer a reputational loss and incur higher contract termination costs when they fail to execute an agreed buyout contract. Our paper adds to this growing literature by studying publicly issued bonds and the effect of PE firms' reputational concerns on their portfolio companies after the IPO. ...

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Private Equity Firms' Reputational Concerns and the Costs of Debt Financing

... The second period runs from this decision until the beginning of the credit crunch in July 2007. We select this date as a cut-off because it marked a period of instability and uncertainty in the capital markets which resulted in an unusually high level of acquisition terminations (Cain et al. 2010). The third period covers the remainder of the sample. ...

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Delaware's Competitive Reach

... 1 Drawing on hand-collected data about investment bank valuation taken from firms' merger documents filed with the U.S. Securities and Exchange Commission (SEC), this paper investigates (1) whether the valuation information disclosed in merger filings has implications for asset returns and mechanisms driving returns and (2) whether and how the financial market incorporates this information when it is publicly disclosed. Answers to these questions offer a new perspective on both corporate finance issues and asset pricing phenomena in the debate over the usefulness of investment bank valuation (e.g., DeAngelo 1990;Elson 1992;Cain and Denis 2013;Liu 2020), the argument over the informativeness of corporate filings (e.g., Brown and Tucker 2011;Cohen, Malloy, and Ng 2020), and the unsettling finding of a very weak relation between information arrival and stock price movement (see the reviews of Hirshleifer 2001; ...

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Neglected Peers in Merger Valuations

... They also carry less severe penalties and are of diminishing importance (Thompson and Sale [2003], Thompson and Thomas [2004]). For example, nearly every acquisition in 2011 (95%) was accompanied by a state-filed lawsuit, the vast majority of which resulted in only additional disclosure about the merger to shareholders and a payment of a relatively small fee to the plaintiffs' lawyers (Cain and Davidoff [2012], Davidoff, Fisch, and Griffth [2015]). ...

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Federal Judge Ideology: A New Measure of Ex‐Ante Litigation Risk

... This period of analysis is preceded by the Fourth Merger Wave (1975-1989), known for its prominent hostile transactions and frequent bidder and target firm suits (Gilson and Black 2004), and followed by the Sixth merger wave (2003-2007) where cash financed transactions are very common (Alexandridis, Mavrovitis and Travlos 2011). The Sixth merger wave was followed by the post-2008 global financial crisis period where we see a rising percentage of M&A deals facing lawsuits and multi-jurisdictional litigation (Daines and Koumrian 2012; Cain and Davidoff 2012). Using a much more reliable dataset, our study provides a clear baseline for comparison with other periods of M&A activity. ...

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Jurisdictional Effects in M&A Litigation

... Fiduciary duty liability rules would rely on judges to adjudicate claims against directors and officers of systemic firms. The most expert judges in corporate law matters in the USA are widely thought to be those constituting the bench of Delaware's Court of Chancery (Kahan 2006;Cain & Davidoff 2012). 68 But does Delaware-or any other state-have any incentive to introduce liability of this kind? ...

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Systemic Harms and Shareholder Value