Three chapters on corporate financial decisions

Li, Yifan (2026) Three chapters on corporate financial decisions. PhD thesis, University of Glasgow.

Abstract

Corporate decision-making is shaped by the interplay of internal managerial dynamics and external forces, such as globalization and climate risks. This study examines three critical dimensions of this complex environment, integrating behavioral and neoclassical perspectives to provide a comprehensive understanding of corporate policies.

First, it explores how CEOs influence corporate cash management, focusing on the transferability of cash management styles during CEO transitions. Using a dynamic partial adjustment model, the findings reveal that high-cash-style CEOs tend to increase excess cash levels in new firms, while low-cash-style CEOs adapt to existing policies. These insights highlight the conditional persistence of managerial traits and their impact on firm outcomes.

Second, the study investigates the role of global connectedness in cross-border mergers and acquisitions (M&A). By leveraging the DHL Global Connectedness Index, it demonstrates that trade breadth and information flows drive international deal activity. However, the findings also caution against potential downsides, as highly connected environments may encourage lower-quality acquisitions.

Finally, it assesses the effects of climate risks, specifically extreme heat exposure, on M&A dynamics. Firms with higher heat exposure face reduced acquisition likelihood, diminished bargaining power, and long-term underperformance, underscoring the importance of integrating climate risks into corporate finance frameworks.

This research contributes to the understanding of managerial influence, globalization, and climate finance, offering practical insights for corporate leaders, investors, and policymakers navigating today’s interconnected and climate-conscious world.

• Item Type: Thesis (PhD)
• Qualification Level: Doctoral
• Subjects: H Social Sciences > HG Finance
• Colleges/Schools: College of Social Sciences > Adam Smith Business School > Accounting and Finance
• Supervisor's Name: Evangelos, Professor Vagenas-Nanos and Verwijmeren, Professor Patrick
• Date of Award: 2026
• Depositing User: Theses Team
• Unique ID: glathesis:2026-85755
• Copyright: Copyright of this thesis is held by the author.
• Date Deposited: 27 Feb 2026 15:50
• Last Modified: 27 Feb 2026 15:54
• Thesis DOI: 10.5525/gla.thesis.85755
• URI: https://theses.gla.ac.uk/id/eprint/85755