CVC Capital has secured a court order freezing the assets of a flamboyant Chinese restaurant owner who sold a majority stake in her company South Beauty to the European private equity group last year for $300m; “very substantial sums had been paid by [CVC] and it is still unknown where those sums now are”

http://www.ft.com/intl/cms/s/0/72ff66d8-ce44-11e4-9712-00144feab7de.html#axzz3UttnY9WF

March 19, 2015 4:31 pm

CVC freezes Chinese restaurateur’s assets

Tom Mitchell in Beijing and Joseph Cotterill in London

CVC Capital has secured a court order freezing the assets of a flamboyant Chinese restaurant owner who sold a majority stake in her company to the European private equity group last year for $300m. The order, granted on March 6, was directed against Zhang Lan and two other respondents, Grand Lan Holdings Group (BVI) Limited and South Beauty Development Limited. Last April, CVC said it had taken an 83 per cent stake in Ms Zhang’s South Beauty restaurant chain, but the two parties are now involved in an arbitration case.

In giving reasons for his decision to grant the order, Hong Kong High Court Justice Andrew Chung rejected Ms Zhang’s argument that there was “insufficient evidence of a real risk of dissipation of assets”. Justice Chung instead noted that “very substantial sums had been paid by [CVC] and it is still unknown where those sums now are . . . Money is, of course, a relatively liquid form of asset.” Continue reading

China Tells Internet Firm Ex-Boss, under investigation for alleged securities rules violations, to come back to the country as it seeks to avert a second corporate default in the onshore bond market

http://www.bloomberg.com/news/articles/2015-03-20/china-tells-internet-firm-ex-boss-come-home-to-fix-debt

China Tells Internet Firm Ex-Boss Come Home to Fix Debt

byBloomberg News

March 20, 2015

(Bloomberg) — China told an Internet company to urge its former chief, under investigation for alleged securities rules violations, back to the country as it seeks to avert a second corporate default in the onshore bond market. Continue reading

Share manipulation scheme unveiled? Ex-staffer behind selling of Civmec shares?

http://www.businesstimes.com.sg/companies-markets/ex-staffer-behind-selling-of-civmec-shares

Ex-staffer behind selling of Civmec shares?

Melissa Tan

19 March 2015

Business Times Singapore

THE sharp drop in shares of Australian engineering services firm Civmec this week is said to be possibly due to selling by a former employee. The counter dived 29 per cent or 14.5 cents to end at 35.5 cents on Wednesday after the bourse warned in the morning that investors trading in Civmec should be cautious. This tumble followed a 16 per cent slide in the share price from 58 cents last Friday to 50 cents on Tuesday. Trading volumes have also spiked over the past two days. The number of shares changing hands jumped from slightly more than 300,000 on Monday to 1.9 million on Tuesday and then 4.9 million on Wednesday, which was the highest daily level since September 2013 according to Bloomberg data. Continue reading

[Flashback] China/Asia journalists seek firms out and charge them a big fee for publishing positive stories that exaggerated merits and downplayed risks; China’s/Asia’s Journalism Takes A Hit As Journalists And Editors Get Charged With Bribery

http://english.caixin.com/2014-09-11/100727437.html

9.11.2014 14:40

Media Outlet Blackmailed over 100 Companies, Xinhua Reports

Two top editors at 21cbh.com admit targeting firms preparing to go public, collecting fees for positive stories and punishing those who would not pay with scathing reports

By staff reporter Wang Yuqian

Investigators have identified more than 100 companies allegedly extorted by a well-known financial news outlet, Xinhua reports, and one editor said his superiors wanted him to sign ad agreements with nearly three-quarters of IPO hopefuls every year. Continue reading

Helping Other CEOs Avoid Bad Press: Social Exchange and Impression Management Support among CEOs in Communications with Journalists

http://eds.b.ebscohost.com.libproxy.smu.edu.sg/ehost/pdfviewer/pdfviewer?sid=15ab420f-3178-4768-9e96-d928d0e8a6d8%40sessionmgr198&vid=1&hid=117

http://ejournals.ebsco.com.libproxy.smu.edu.sg/Direct.asp?AccessToken=95JIDIM8XZ949K5QDZM4KJQME5MP8XQM4I&Show=Object

Helping Other CEOs Avoid Bad Press: Social Exchange and Impression Management Support among CEOs in Communications with Journalists

Westphal, James D.1 Park, Sun Hyun2 McDonald, Michael L.3 Hayward, Mathew L. A.4

Administrative Science Quarterly. Jun2012, Vol. 57 Issue 2, p217-268. 52p. 1 Diagram, 6 Charts.

Abstract:

In this study, we examine the determinants and consequences of impression management (IM) support in communications between CEOs and journalists, whereby CEOs of other firms provide positive statements about a focal CEO’s leadership and strategy and/or external attributions for low performance at the focal CEO’s firm. Drawing from social exchange theory, our theoretical perspective suggests how IM support may result from norms of reciprocity among corporate leaders. We consider the potential for direct and generalized reciprocity in the provision of IM support, including generalized reciprocity in which CEOs who received IM support previously pay the support forward to another third-party CEO, and a second form of generalized reciprocity in which CEOs reciprocate IM support to fellow CEOs whom they believe have given similar support to other CEOs in the past. We also draw from the social psychological literature on persuasion to suggest why IM support for another CEO may have a more positive influence on the tenor of journalists’ coverage about the firm’s leadership than impression management by the CEO about his or her own leadership and strategy. We test our hypotheses with data from large and mid-sized public U.S. companies from 1999 to 2007, including original survey data from a large sample of CEOs and journalists. The results supported our hypotheses, and additional findings suggested that the apparent effects of impression management by leaders and staff about their own firms following a negative earnings surprise may be partially attributable to the effects of IM support.

Avoiding Bad Press: Interpersonal Influence in Relations Between CEOs and Journalists and the Consequences for Press Reporting About Firms and Their Leadership

Westphal, James D.1 westjd@umich.edu Deephouse, David L.2 david.deephouse@ualberta.ca

Organization Science. Jul/Aug2011, Vol. 22 Issue 4, p1061-1086. 26p. 3 Charts, 2 Graphs.

Abstract:

In this study we consider how and when interpersonal relations between chief executive officers (CEOs) and journalists can influence the content of journalists’ reporting about corporate leaders and their firms. Specifically, we draw from the social psychological literature on interpersonal influence and social exchange to suggest (i) how the disclosure of relatively low corporate earnings may prompt the CEO to engage in ingratiatory behavior toward journalists, and (ii) how such behavior may be effective in prompting journalists to issue relatively positive reports about the CEO’s firm. We also extend our theory to consider how relatively negative journalist reports may prompt CEOs to retaliate against individual journalists by limiting or cutting off communication with the offending journalist, and how such retaliation may deter other journalists from issuing negative reports about the firm in the future. We find support for our hypotheses in a unique data set that includes large-sample survey data on CEO-journalist relations. We discuss how our research contributes to the growing literature in organization theory and strategy on the social processes by which corporate leaders influence the behavior of information intermediaries and other external constituents toward their firms. Moreover, we suggest that an implication of our findings is that top executives can actively influence the reputation of their firms, as well as their own reputations as corporate leaders, by engaging in interpersonal influence processes toward journalists.

Prosecutors raided the head offices of the Korea National Oil Corp. (KNOC) and Keangnam Enterprises, as part of their widening investigation into allegations of corruption surrounding the failed “energy diplomacy” conducted under the Lee Myung-bak adminstration

http://www.koreatimes.co.kr/www/news/nation/2015/03/116_175486.html

Posted by LE Hoang Trinh, Year 4 undergrad at the School of Information Systems, Singapore Management University

Updated : 2015-03-18 18:37

Prosecution raids Korea National Oil

Investigation into failed energy diplomacy expands

By Kim Rahn

Prosecutors raided the head offices of the Korea National Oil Corp. (KNOC) and Keangnam Enterprises, Wednesday, as part of their widening investigation into allegations of corruption surrounding the failed “energy diplomacy” conducted under the Lee Myung-bak administration. Continue reading

Former Posco Group Chairman Chung Joon-yang allegedly invested some trillions of won in questionable mergers and acquisitions during his term; Posco probe shifts to its subcontractors

http://koreajoongangdaily.joins.com/news/article/article.aspx?aid=3002081&cloc=joongangdaily|home|newslist1

http://koreajoongangdaily.joins.com/news/article/article.aspx?aid=3002084

Trillions of won spent on Posco M&As

Mar 19,2015

Former Posco Group Chairman Chung Joon-yang allegedly invested some trillions of won in questionable mergers and acquisitions during his term, according to data from a website specializing in corporate statistics. The 67-year-old has been recognized by prosecutors as the driving force behind alleged tax evasions and a multitude of suspicious mergers and acquisitions orchestrated by the nation’s No. 1 steelmaker that resulted in a massive financial blow.  Continue reading