Kyushu University Academic Staff Educational and Research Activities Database
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Tsung-ming Yeh Last modified date:2019.06.12

Professor / Economic Analysis and Policy
Department of Economic Engineering
Faculty of Economics


Graduate School
Undergraduate School


Phone
092-642-2496
Academic Degree
PhD (Management)
Country of degree conferring institution (Overseas)
Yes
Field of Specialization
Financial Economics, M&A, Corporate Governance,Taiwanese Economy & Business
Total Priod of education and research career in the foreign country
01years00months
Research
Research Interests
  • Economic analysis of corporate governance, restructuring and M&A
    keyword : corporate governance, M&A, anti-takeover defense, shareholder proposal, restructuring
    1997.04~2018.03.
  • Analysis of financial literacy and decision-making
    keyword : financial literacy
    2016.09~2021.03.
  • Taiwanese Economy and Business
    keyword : Taiwanese Economy and Business
    1999.10.
Academic Activities
Papers
1. Tsung-ming Yeh, Large shareholders, shareholder proposals, and firm performance
Evidence from Japan, Corporate Governance:An International Review, 10.1111/corg.12052, 22, 4, 312-329, 2014.01, Manuscript Type: Empirical Research Question/Issue: Previous studies, primarily based on evidence from the United States, fail to link shareholder activism to firm performance, with one explanatory factor being that the legal and regulatory system in the United States limits the anti-director rights of shareholders. This study is motivated by the question of whether legally binding shareholder resolutions can pressure management to improve firm performance and to enhance firm value. Research Findings/Insights: By investigating 135 publicly listed Japanese firms which received shareholder resolutions from 2004 to 2010, this study finds supportive evidence for shareholder proposals. Announcement-associated abnormal returns are higher for firms receiving election-related proposals by large sponsors, than those unrelated to board election. Furthermore, an improving trend begins to appear in the post-resolution year, particularly significant for firms receiving proposals to remove board members. Theoretical/Academic Implications: This study provides new evidence suggesting that large shareholder activism in Corporate Japan can perform roles that used to be played by main banks before the 1990s. It also suggests that in countries where there is no active takeover market, large shareholders can effectively discipline entrenched management through active engagement. Practitioner/Policy Implications: This study offers insights to corporate managers on the importance of communicating with large shareholders and addressing their concerns..
2. Tsung-ming Yeh, Determinants and consequences of shareholder proposals
The cases of board election, charter amendment, and profit disposal, Journal of Corporate Finance, 10.1016/j.jcorpfin.2017.05.004, 45, 245-261, 2017.08, By investigating shareholder proposals in Japan during 2004–2013, this study aims to address the question whether exercising legally powerful shareholder rights has an impact on the management. Compared with their counterparts in the United States, Japanese shareholders are entitled to more statutory rights, including binding shareholder resolutions on issues relating to board election, charter amendment, and profit disposal. The empirical tests reveal several important results. First, different types of shareholder proposals are triggered by varying firm characteristics. Second, resolutions on the board election and charter amendments relating to corporate governance receive higher votes than those for profit disposal. Voting outcome is also positively associated with foreign shareholding, duration of the general meeting, and the firm's history of receiving proposals. Moreover, resolutions initiated by large shareholders have positive impacts on the target firms, which reported positive announcement-associated abnormal returns. Improvements in the operating performance are observed for firms passing board election resolutions and firms receiving charter amendment proposals from large shareholders. The management also increased share buyback and dividend payout in response to demands by large shareholders, although there was no significant change in the post-resolution operating performance. Overall, the results indicate that statutorily powerful shareholder rights, when exercised by large shareholders, can have a positive impact..
3. Tsung-ming Yeh, Do Private Equity Funds Increase Firm Value?
Evidence from Japanese Leveraged Buyouts, Journal of Applied Corporate Finance, 10.1111/j.1745-6622.2012.00405.x, 24, 4, 2012.12, Abstract

The author summarizes the findings of his recent study of 62 buyouts of listed Japanese companies by both Japanese and “foreign” private equity funds that were transacted between 2000 and 2007. Roughly half of the author's sample of transactions were accomplished by means of takeover bids by PE funds, and such deals were transacted at prices that represented a premium (of roughly 12%) to current market values. Most of the other PE transactions were privately negotiated deals in which the purchase prices involved discounts (of about 15% on average) to current value. For both sets of deals, however, the announcements of such buyouts were associated, on average, with a significantly positive stock market reaction.
By the cutoff date of the study (May 2010), 30 of the 62 acquired firms had realized “exits.” Those companies (though not the others) experienced significant average improvements in operating performance; and the extent of such improvements were roughly consistent with the size of the positive market reaction to the buyout announcements. The test results suggest that the value increases can be attributed to the more efficient use of assets and reduction of operating costs. Meanwhile, there was no evidence suggesting that the acquired firms cut back on their research and development, capital investments, or employee wages and growth. What's more, examination of the operating performance of the 30 companies after their exits showed no deterioration in profitability or investment spending..
4. Tsung-ming Yeh, The effects of anti-takeover measures on Japanese corporations, Review of Quantitative Finance and Accounting, 10.1007/s11156-013-0361-0, 42, 2, 2014.05.
Presentations
1. Tsung-ming Yeh, How financial literacy can contribute to retirement savings: an empirical research, 2019 International Conference of Taiwan Finance Association, 2019.05, This study aims to provide empirical evidence on the mechanisms through which financial literacy may be associated with the behaviors of saving for retirement, in the three phases of decision-making process – information perception, information search and evaluation, and decision-making and implementation. Empirical results indicate that, after accounting for various control variables, financial literacy has significantly positive effects on one’s awareness of post-retirement financial needs, comparing with alternative products when making significant financial decisions, displaying less behavioral biases, planning for and successfully securing post-retirement funds, and experiencing fewer financial disputes. The results can provide explanations for the findings of previous studies as to why people with higher financial literacy accumulate greater net wealth, make wiser financial decisions, or are more likely to invest in the stock market..
2. Tsung-ming Yeh, The Modes of Buyouts: Tender Offer versus Private Placement of Equity, Asian Finance Association, 2018.06.
3. 葉聰明, The Modes of Buyouts and Private Benefits of Control, International Conference and Annual Meeting of Taiwan Finance Association, 2018.05.
Membership in Academic Society
  • Asian Finance Association
  • Taiwan Finance Association
  • Japan Academy of international Business Studies
  • Japanese Association of Administrative Science
  • Nippon Finance Association
  • Japan Finance Association
Awards
  • International Conference of Taiwan Finance Association Best Paper Award 2019
  • Japan Finance Association Award for Year 2013
  • Japan Academy of International Business Studies Award for Year 2013
  • Japanese Administrative Science Society Research Award for Year 2008
Social
Professional and Outreach Activities
2019 National Taiwan Normal University (NTNU)-Kyushu University (Kyushu U) Joint Forum
on Facilitating Interdisciplinary Research and Education, May 27~May 28, 2019. .