Download or read book Corporate Investment Activity Industrial and Global Diversification and Internal Capital Markets written by Ozgur Berk KAN and published by . This book was released on 2001 with total page 236 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Internal Capital Markets in Business Groups and the Propagation of Credit Supply Shocks written by Ms.Yu Shi and published by International Monetary Fund. This book was released on 2019-05-21 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using business registry data from China, we show that internal capital markets in business groups can propagate corporate shareholders’ credit supply shocks to their subsidiaries. An average of 16.7% local bank credit growth where corporate shareholders are located would increase subsidiaries investment by 1% of their tangible fixed asset value, which accounts for 71% (7%) of the median (average) investment rate among these firms. We argue that equity exchanges is one channel through which corporate shareholders transmit bank credit supply shocks to the subsidiaries and provide empirical evidence to support the channel.
Download or read book Corporate Diversification Investment Flexibility and Internal Capital Markets written by Hung Yip Davin Wang and published by . This book was released on 2013 with total page 378 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Learning About Internal Capital Markets from Corporate Spin Offs written by Robert H. Gertner and published by . This book was released on 2003 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the investment behavior of firms before and after being spun off from their parent companies. Their investment after the spin-off is significantly more sensitive to measures of investment opportunities (e.g., industry Tobin's Q or industry investment) than it is before the spin-off. Spin-offs tend to cut investment in low Q industries and increase investment in high Q industries. These changes are observed primarily in spin-offs of firms in industries unrelated to the parents' industries and in spin-offs where the stock market reacts favorably to the spin-off announcement. Our findings suggest that spin-offs may improve the allocation of capital.
Download or read book Internal Capital Markets in Business Groups written by Krislert Samphantharak and published by . This book was released on 2007 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper extends a structural model of investment with costly external finance to firms in business groups, derives an empirical regression counterpart, and uses it to test for the existence of internal capital markets in business groups and various characteristics of a group that tend to affect within-group resource allocation. I use a unique firm-level data submitted to Thailand's Ministry of Commerce as a sample in the empirical sections. The results show that corporate ownership, control rights, and within-group intermediaries tend to facilitate the internal capital markets. Corporate laws that protect minority shareholders lead to the less efficient internal capital markets although the effect is indirectly through the smaller cash flow rights and voting rights of controlling shareholders over the listed firms as compared to the non-listed firms. Groups with more member firms that are structured vertically tend to have more efficient internal capital markets while horizontal structure has no effect on within-group resource allocation. Finally, the more industry diversification, the more efficient the internal capital markets in business groups. In sum, the paper provides empirical evidence from firm-level data that the structure of business groups and corporate governance are related to the investment behavior of firms.
Download or read book Corporate Diversification and Innovation written by Peter G. Klein and published by . This book was released on 2017 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: Which is more innovative: the decentralized, diversified corporation or the smaller, more narrowly focused entrepreneurial firm? The economics and finance literatures argue that larger, diversified firms have natural innovation advantages, as their operating units have access to an internal capital market. In contrast, the strategy and entrepreneurship literatures argue that managers of large, decentralized firms suffer from “managerial myopia,” which prevents them from investing in projects with long-term, uncertain payoffs. This paper takes a fresh look at the relationship between innovation and diversification using a comprehensive sample of diversified and non-diversified firms along with a novel analytical approach that teases out the mechanisms influencing the relationship between diversification and innovation. Consistent with both conceptual and empirical work in strategy, we find a robust negative correlation with diversification strategy and research and development intensity. We also find support for the hypothesis that diversification reduces innovation by discouraging investment. However, our analysis suggests that internal capital market inefficiencies, not managerial myopia, is primarily responsible for this observed negative relationship.
Download or read book Corporate Diversification and Internal Capital Markets written by Halit Gonenc and published by . This book was released on 2006 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: We compare the performance of firms affiliated with diversified business groups with the performance of unaffiliated firms in an emerging market, Turkey. Our findings indicate that group affiliation improves firm's accounting performance, but not stock market performance. Furthermore, we find that firm's accounting (but not stock market) performance increases with the level of group diversification. Our results also indicate that having a group affiliated bank affects the accounting performance measures of the group firms positively, but the market value of the group affiliated firms negatively, supporting the misallocation of capital hypothesis. In addition, having a group affiliated media institution is found to affect the performance of the group firms positively. More importantly, we examine the frequency of seasoned equity issue offerings with the forms of cash (right and restricted right) issues and bonus issues to address the question of whether group affiliated firms create an internal capital market. We show that unaffiliated firms are more bound to external markets to raise capital while the affiliated firms use internal capital markets.The views expressed in these papers are those of the author(s), they do not reflect the opinions of LECG, LLC and should not be construed as representing the positions of other experts at LECG, LLC.
Download or read book The Integration of World Capital Markets written by Mr.Michael Mussa and published by International Monetary Fund. This book was released on 1993-12-01 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper discusses the extent to which national capital markets have become linked, and identifies several of the more important consequences of that increased degree of integration. Alternative approaches to the measurement of capital market integration are reviewed, including deviations from the law of one price, differences between actual and optimally diversified portfolios, correlations between domestic investment and domestic saving, and cross-country links in consumption behavior. Two recent episodes of large-scale international capital flows—namely, the turmoil in the European Monetary System in the fall of 1992, and the surge of capital inflows into Latin America during the last three years—are examined for insights into the workings of today’s global capital market. Finally, the paper offers some concluding remarks on the future development of international capital markets, on exchange rate management, on alternative approaches to living with larger and more influential financial markets, and on the financing of investment in the formerly centrally planned economies.
Download or read book Emerging Capital Markets and Globalization written by Augusto de la Torre and published by World Bank Publications. This book was released on 2006-10-20 with total page 232 pages. Available in PDF, EPUB and Kindle. Book excerpt: Back in the early 1990s, economists and policy makers had high expectations about the prospects for domestic capital market development in emerging economies, particularly in Latin America. Unfortunately, they are now faced with disheartening results. Stock and bond markets remain illiquid and segmented. Debt is concentrated at the short end of the maturity spectrum and denominated in foreign currency, exposing countries to maturity and currency risk. Capital markets in Latin America look particularly underdeveloped when considering the many efforts undertaken to improve the macroeconomic environment and to reform the institutions believed to foster capital market development. The disappointing performance has made conventional policy recommendations questionable, at best. 'Emerging Capital Markets and Globalization' analyzes where we stand and where we are heading on capital market development. First, it takes stock of the state and evolution of Latin American capital markets and related reforms over time and relative to other countries. Second, it analyzes the factors related to the development of capital markets, with particular interest on measuring the impact of reforms. And third, in light of this analysis, it discusses the prospects for capital market development in Latin America and emerging economies and the implications for the reform agenda.
Download or read book Handbook of the Economics of Finance written by G. Constantinides and published by Elsevier. This book was released on 2003-11-04 with total page 698 pages. Available in PDF, EPUB and Kindle. Book excerpt: Arbitrage, State Prices and Portfolio Theory / Philip h. Dybvig and Stephen a. Ross / - Intertemporal Asset Pricing Theory / Darrell Duffle / - Tests of Multifactor Pricing Models, Volatility Bounds and Portfolio Performance / Wayne E. Ferson / - Consumption-Based Asset Pricing / John y Campbell / - The Equity Premium in Retrospect / Rainish Mehra and Edward c. Prescott / - Anomalies and Market Efficiency / William Schwert / - Are Financial Assets Priced Locally or Globally? / G. Andrew Karolyi and Rene M. Stuli / - Microstructure and Asset Pricing / David Easley and Maureen O'hara / - A Survey of Behavioral Finance / Nicholas Barberis and Richard Thaler / - Derivatives / Robert E. Whaley / - Fixed-Income Pricing / Qiang Dai and Kenneth J. Singleton.
Download or read book Learning About Internal Capital Markets from Corporate Spinoffs written by Robert H. Gertner and published by . This book was released on 2001 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the investment behavior of firms before and after they are spun off from their parent companies. We show that investment after the spinoff is significantly more sensitive to measures of investment opportunities (e.g. industry Tobin's Q or industry investment) than it is before the spinoff. Spinoffs tend to cut their investment in low Q industries and increase their investment in high Q industries. These changes are observed only in spinoffs of firms in industries unrelated to the parents' industries and in spinoffs where the stock market reacts favorably to the spinoff announcement. Our findings point to the possibility that one effect of spinoffs is to improve the allocation of capital.
Download or read book OECD Sovereign Borrowing Outlook 2021 written by OECD and published by OECD Publishing. This book was released on 2021-05-20 with total page 94 pages. Available in PDF, EPUB and Kindle. Book excerpt: This edition of the OECD Sovereign Borrowing Outlook reviews developments in response to the COVID-19 pandemic for government borrowing needs, funding conditions and funding strategies in the OECD area.
Download or read book Moving Beyond Modern Portfolio Theory written by Jon Lukomnik and published by Routledge. This book was released on 2021-04-29 with total page 175 pages. Available in PDF, EPUB and Kindle. Book excerpt: Moving Beyond Modern Portfolio Theory: Investing That Matters tells the story of how Modern Portfolio Theory (MPT) revolutionized the investing world and the real economy, but is now showing its age. MPT has no mechanism to understand its impacts on the environmental, social and financial systems, nor any tools for investors to mitigate the havoc that systemic risks can wreck on their portfolios. It’s time for MPT to evolve. The authors propose a new imperative to improve finance’s ability to fulfil its twin main purposes: providing adequate returns to individuals and directing capital to where it is needed in the economy. They show how some of the largest investors in the world focus not on picking stocks, but on mitigating systemic risks, such as climate change and a lack of gender diversity, so as to improve the risk/return of the market as a whole, despite current theory saying that should be impossible. "Moving beyond MPT" recognizes the complex relations between investing and the systems on which capital markets rely, "Investing that matters" embraces MPT’s focus on diversification and risk adjusted return, but understands them in the context of the real economy and the total return needs of investors. Whether an investor, an MBA student, a Finance Professor or a sustainability professional, Moving Beyond Modern Portfolio Theory: Investing That Matters is thought-provoking and relevant. Its bold critique shows how the real world already is moving beyond investing orthodoxy.
Download or read book Economic Policy and the Regulation of Corporate Securities written by Henry G. Manne and published by . This book was released on 1969 with total page 420 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Europe s Hidden Capital Markets written by Jean-Pierre Casey and published by CEPS. This book was released on 2005 with total page 142 pages. Available in PDF, EPUB and Kindle. Book excerpt: Assessing regulatory measures taken at the EU level that impact European bond markets, this book examines the desirability, utility, and feasibility of certain policy measures.
Download or read book Internal Capital Markets and Competitive Threats written by Garrett Swanburg and published by . This book was released on 2014 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: Theory suggests that diversified firms' internal capital markets can help or hinder their ability to respond to competitive threats. They can help by allowing the firm to quickly move resources to threatened markets (resource flexibility), but can hurt by making it easier for the firm to exit an industry. This paper examines how diversified firms respond to heightened competition following tariff reductions in order to assess the competing theories. The main finding is diversified firms reduce their investment in threatened industries relative to non-diversified firms. This results in a higher proportion of firm-level investment funds being allocated to unaffected segments.
Download or read book Corporate Level Strategy written by Olivier Furrer and published by Routledge. This book was released on 2016-04-13 with total page 299 pages. Available in PDF, EPUB and Kindle. Book excerpt: The challenges faced by diversified corporations—firms that operate in more than one industry or market—have changed over the years. In this new edition, Olivier Furrer helps students of corporate strategy to consider the impact of critical changes in resources, businesses and headquarters roles on the firm’s ability for establishing and sustaining corporate advantage. New to this edition are stimulating pedagogical features and additional material such as a new chapter on the theoretical foundations of multibusiness firms, along with a host of new examples from across the world. A companion website supplements the book, providing PowerPoint slides, a test bank of questions, and lists of suggested case studies.
