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Research Question/Issue: We examine whether bond‐blockholders provide additional, distinct monitoring roles in merger and acquisition (M&A) processes beyond those of equity‐blockholders. Using a sample of 4309 M&A deals reported between 2001 and 2010, we shed new light on the monitoring spillover effects of bondholders to shareholders in the context of M&As. Research Findings/Insights: Our findings demonstrate a positive relationship between the presence of bond‐blockholders (or a change in their position) and acquiring firms' abnormal return announcements, which supports the monitoring spillover effects from bondholders to shareholders in M&A processes. Our subsample analyses indicate that bond‐blockholders are better monitors of (1) overconfident CEOs engaging in M&As, (2) CEOs exhibiting risk‐taking behavior in M&As, and (3) entrenched managers participating in M&As. Moreover, we discover a positive association between the previous quarter's changes in "monitoring" bond‐blockholders' positions and the acquiring firms' 3‐day cumulative abnormal returns (CARs). Theoretical/Academic Implications: In corporate finance literature, equity‐blockholders have long been recognized as effective monitors. Despite the importance of debt as most firms' primary funding source, the benefits of debt for monitoring the efficiency of managers and their organizations have been largely overlooked in the existing literature. Thus, this study provides evidence on the additional and distinct monitoring roles of bond‐blockholders beyond those of equity‐blockholders in M&A processes and the impact of bond‐blockholders on shareholders' wealth around M&A announcements. Practitioner/Policy Implications: This study offers insights to policymakers interested in enhancing the legitimacy of corporate governance on the monitoring spillover effects of bondholders to shareholders in the context of M&As. In addition, our findings suggest that bondholders can have a long‐term perspective beyond the limited time horizon of bond maturity and influence M&A processes positively. Thus, this study has significant implications for managers and practitioners interested in which investors positively affect M&As. [ABSTRACT FROM AUTHOR]

A dynamic model of a stationary proton exchange membrane (PEM) fuel cell system has been developed in MATLAB-SIMULINK®. The system model accounts for the fuel processing system, PEM stack with coolant, humidifier with anode tail-gas oxidizer, and an enthalpy wheel for cathode air. Four reactors are modeled for the fuel processing system: (1) an autothermal reformation (ATR) reactor, (2) a high temperature shift (HTS) reactor, (3) a low temperature shift (LTS) reactor, and (4) a preferential oxidation reactor. Chemical kinetics for ATR that describe steam reformation of methane and partial oxidation of methane were simultaneously solved to accurately predict the reaction dynamics. The chemical equilibrium of CO with H2O was assumed at HTS and LTS reactor exits to calculate CO conversion corresponding to the temperature of each reactor. A quasi-onedimensional PEM unit cell was modeled with five control volumes for solving the dynamic species and mass conservation equations and seven control volumes to solve the dynamic energy balance. The quasi-one-dimensional cell model is able to capture the details of membrane electrode assembly behavior, such as water transport, which is critical to accurately determine polarization losses. The dynamic conservation equations, primary heat transfer equations and equations of state are solved in each bulk component, and each component is linked together to represent the complete system. The model predictions well matched the observed experimental dynamic voltage, stack coolant outlet temperature, and catalytic partial oxidation (CPO) temperature responses to perturbations. The dynamic response characteristics of the current system are representative of a typical stationary PEM fuel cell system. The dynamic model is used to develop and test a proportional-integral (PI) fuel flow controller that determines the fuel flow rate to maintain the uniform system efficiency. The dynamic model is shown to be a useful tool for investigating the effects of inlet conditions, load, and fuel flow perturbations and for the development of control strategies for enhancing system performance. Copyright © 2009 by ASME.

The configuration of fuel, air, and cooling water paths is one of the major factors that influence the performance of a proton exchange membrane fuel cell (PEMFC). In order to investigate the effects of these factors, a quasi-three-dimensional dynamic model of a PEMFC has been developed. For validation, simulation results are compared with experimental data in one-flow configuration case and show good agreement with the experimental cell performance data. Five different flow configurations are then simulated to systematically investigate the effects of fuel, air, and cooling channel configuration on the local current and species distribution. Voltage and power vs. current density for five different configurations are compared. The type 1 configuration, which has a fuel-air counter flow and an air-coolant co-flow, has the highest performance in all ranges of current density because the membrane remains the most hydrated. When the operating current density increases, the effects of temperature on membrane hydration slightly decrease. It is confirmed that fuel cell performance improves with increased humidity until flooding conditions appear. An interesting result shows that it is possible to lower the fuel cell operating temperature to improve fuel cell hydration, which in turn improves cell performance. In addition, the different flow configurations are shown to have an effect on the pressure losses and local current density, membrane hydration, and species mole fractions. These results suggest that the model can be used to optimize the flow configuration of a PEMFC. © 2009 International Association for Hydrogen Energy.

A first principles dynamic model of the physical, chemical, and electrochemical processes at work in a proton exchange membrane fuel cell has been developed. The model solves the dynamic equations that govern the physics, chemistry and electrochemistry for time scales greater than about 10 ms. The dynamic equations are solved for a typical but simplified quasi-three dimensional geometric representation of a single cell repeat unit of a fuel cell stack. The current approach captures spatial and temporal variations in the important physics of heat transfer and water transport in a manner that is simple enough to make the model amenable to PEMFC system simulations and controls development. Comparisons of model results to experimental data indicate that the model can well predict steady state voltage-current relationships as well as the oxygen, water, and nitrogen spatial distribution within the fuel cell. In addition, the model gives dynamic insight into the distribution of current, water flux, species mole fractions, and temperatures within the fuel cell. Finally, a control system test is demonstrated using the simplified dynamic model. © 2006 Elsevier B.V. All rights reserved.

This study investigates institutional distance as a factor of investors' monitoring of corporate earnings attributes. We analyze the US cross‐listing market to determine whether institutional monitoring depends on geographic or market proximity. We find that shareholdings of non‐US institutions headquartered in the same country as the investee firm are significantly and positively related to earnings quality. However, we do not find such a monitoring role in the United States, or in institutions not incorporated in the investee firm's home country. Our findings support a geographic proximity advantage over market proximity, which is more pronounced when firms' information opacity is more severe; the results are not altered by the choice of earnings attribute variables. [ABSTRACT FROM AUTHOR]

Using extensive manually collected data on granted patents, this study examines the effects of the degree of a firm's information asymmetry on corporate innovation in the Korean market, which is characterized by weak transparency and active firm innovation. Based on four measures of information asymmetry, we find that the quality of information about a firm has a positive influence on its innovation activities. In addition, this influence is more evident in firms with poor corporate governance practices and in Chaebol-affiliated firms. Overall, this study offers insights on the importance of information quality for firms planning investments in innovation, which is a long-term and highly uncertain commitment. An important policy implication is that regulatory authorities should promote the timely and reliable disclosure of information on firms. [ABSTRACT FROM AUTHOR]