Download or read book Three Essays on the Strategic Effects of Debt on Firms R D Decisions written by Sungcheon Kang and published by . This book was released on 2004 with total page 294 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays in Empirical Finance written by Chady Emile Gemayel and published by . This book was released on 2019 with total page 124 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the first chapter of this dissertation, I show that firms strategically liquidate their growth options and reputational capital after loan covenant violations. Loan covenant violations increase creditors' relative bargaining power, shifting control rights towards debt holders. I use Amazon product metadata and product reviews in an event study framework to identify changes firms make to their product strategies after these violations. In the two quarters after new loan covenant violations, firms decrease both their product portfolio size and their product quality. I use product review text to show that firms actively reduce product quality by increasing the rate of product failure. These changes increase short-term cashflows, consistent with firms' decisions aligning with creditors' incentives. Violating firms apply these changes strategically within their product portfolios. After covenant violations, firms cull the set of products sold in product markets with more competitors and lower the quality of their less popular products. These strategic decisions reduce the long-term costs of changing product quality and product portfolio size. In the second chapter of this dissertation (with Nimesh Patel), we find that domestic firms invest in their reputational capital in response to increases in international competition. Specifically, American firms increase the quality of their products after positive Chinese import competition shocks. We determine that this is an active decision by identifying product level changes, finding significant reductions in the rate of product failures for domestic firms. Firms build reputational capital by increasing product quality, allowing them to differentiate their products from those of their competitors. We find that product portfolio size attenuates our results, consistent with less diversified firms having greater incentive to differentiate their products. In the third chapter of this dissertation, I study the effects of initial public offerings on product quality. Public firms, unlike private firms, are required to regularly disclose financial and business information. The relative lack of information on private firms that results from this regulatory difference makes quantifying how firms change as a result of going public difficult. I use Amazon product data spanning both private and public firms in an event study framework to identify a decrease in product quality after firms complete their initial public offerings. I find that the decrease in product quality after firms go public is driven by an increase in both the rate of negative brand recognition and the rate of negative customer service experiences.

Download or read book Three Essays on Ownership Issues in Corporate Finance Dissertation written by Yuan Wang and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The study consists of three research topics about corporate ownership and financial issues. Existing literature focuses on overall corporate ownership structure. This study extends the existing literature by studying the impacts of different ownership types. Different types of shareholders are different in several key aspects such as investment policies, targets, and risk preference, all of which influence how they execute their screening role over the companies, and are important determinants of firms' decisions. To the extant literature, scholars have employed various perspectives to examine corporate ownership. In this study, I will be focusing on the behavior agency theory, agency theory, and socioemotional wealth theory, in the hope of bringing a more nuanced insight of the impacts of different corporate ownership on financial issues, such as, cost of bank loan, the formation of international joint venture, and CEO turnover. In the first essay, I employ a sample of U.S. public companies between 2007 and 2016 to explore the joint effects of executive inside debt (EID) and family involvement on the cost of bank loans. The empirical results indicate that the mitigating effect of EID on the cost of bank loans is attenuated for family firms. In addition, I provide evidence for the following: 1) the mitigating effect of EID on cost of debt is strengthened when a firm's performance is lower than its aspiration level and 2) the moderating effect of family involvement is significant when firm performance is above its aspiration level. Collectively, our findings support the behavioral agency prediction that family involvement shapes firms' risk-taking preference, which acts as a substitute for EID in decreasing the cost of debt. In the second essay, I examine whether family involvement in business affects firms' engagement in international joint ventures (IJVs). Building on the narrow framing perspective, I argue that family businesses are more prone to utilize risk diversifying strategies over multiple IJV choices than non-family firms, because the family firms' decisions tend to be broadly-framed. Examining the interaction between three IJV decisions (type of IJV, choice of host country, and number of partners) in a sample of 1,439 IJVs formed by publicly traded companies in the US, we found support for our predictions. In the third essay, I explore how institutional holding together with other finance factors affect the likelihood of CEO turnover and whether analyst forecast accuracy serves as a mechanism through which institutional holding influences the likelihood of CEO turnover. I find that increased institutional shareholding results in a lower likelihood of CEO turnover directly as well as indirectly (through the mechanism of analyst forecast accuracy). We also investigate the impact of CEO turnover on subsequent firm performance using market-based measures, including firm value and the cost of equity. Moreover, we examine whether different types of CEO turnover would make a difference on firm value and cost of equity. Our results reveal that after CEO turnover-especially when the previous CEO is forced to leave, and the successor is from outside the company-the firm value is higher, and the cost of equity is lower.

Download or read book Three Essays in Development Economics written by David Russell Hansen and published by Stanford University. This book was released on 2011 with total page 147 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation is composed of three chapters. All three deal with topics in development economics. The first chapter examines the effects on village institutions of introducing formal financial institution options into the village. The second addresses the effects of government policy on educational investment and crime. The third tests the explanatory power of various explanations of the gender gap in math test scores. The first chapter examines the effects of a transition from a ``traditional'' economy based on an uncertain source of income, with risk fully insured away by one's neighbors in a social network through costly network ties, to a ``modern'' economy in which some agents have access to partial insurance at a lower cost. A theoretical model is used to show that village social networks can break down as some members of the village no longer need the insurance the social network provides, producing a reduction in welfare (if the costs of reducing moral hazard are not too high) for at least some individuals and possibly the village as a whole. This loss of welfare can occur even when networks provide other benefits to those belonging to them and is likely to be heterogeneous, depending on the opportunities and networks available to individuals. This paper tests these predictions using Indonesian data to examine the effect of a change in the banking institutions available to a community on the strength of social networks (measured by community participation) and welfare (measured by household expenditure and by child health). The analysis finds that changing financial institution availability in general does not influence community participation or welfare, but that financial institutions that primarily serve certain groups do relatively reduce the welfare of households not in those groups, which is consistent with the hypotheses generated by the model. Crime is an important feature of economic life in many countries, especially in the developing world. Crime distorts many economic decisions because it acts like an unpredictable tax on earnings. In particular, the threat of crime may influence people's willingness to invest in schooling or physical capital. The second chapter explores the questions "What influence do crime rates and levels of investment have on one another?" and "How do government policies affect the relationship between investment and crime?" by creating a simple structural model of crime and educational investment and attempting to fit this model to Mexican data. A method of simulated moments procedure is used to estimate parameters of the model and the estimated parameters are then used to carry out policy simulations. The simulations show that increasing spending on police or increasing the severity of punishment reduces crime but has little effect on educational investment. Increased educational subsidies increase educational investment but reduce crime only slightly. Thus, one type of policy is insufficient to accomplish the goals of both reducing crime and increasing education. The third chapter is joint work with Prashant Bharadwaj, Giacomo De Giorgi, and Christopher Neilson. Boys tend to have better performances than girls in mathematical testing; in particular, there are significantly more boys than girls among high achievers and the score distribution appears to have a longer right tail for boys. We confirm such results on several low- and middle-income countries. In particular we find that the gender gap is already present by age 10 and substantially increases by age 14 and 15. We propose and try to test a series of explanations for such a gap: (i) parental investment, (ii) ability, (iii) school resources, (iv) individual investment and effort (not tested directly), (v) competitive environment, and (vi) cultural norms. We conclude that none of our proposed explanations can account for a substantial portion of the gap.

Download or read book Three Essays in Applied Economics written by Birzhan B. Batkeyev and published by . This book was released on 2017 with total page 125 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of three topics that fall under the broad banner of applied economics. The first chapter will show that student debt is negatively related to the extent of investment in risky financial assets by households by using data from the Survey of Consumer Finances (SCF). An exogenous shock to student debt due to the Higher Education Amendments of 1992 negatively impacts portfolio risk-taking for students already in four- year college at the time of this regulation. Households with significant student debt are more likely to fall behind on their student debt payments when they have significant personal financial portfolio risk. The evidence also suggests that student debt reduces the frequency of trades by households. Further, the negative relation between student debt and personal portfolio risk-taking is stronger for more financially constrained households. The results indicate that student debt may reduce investment in risky assets, thus affecting the long- term wealth of individuals, and may also have repercussions for the broader economy. Firms compete with each other in numerous routine ways, but particularly interesting are firms' responses to competitive threats to their critical assets and operations. Firms may mount vigorous defenses or launch offensive strategies - even bordering on predatory - against rivals that initiate hostile acts. The second chapter will take an empirical approach to analyzing such actions, using observed behavior of a single firm to develop basic facts about strategies and responses to competitive threats from rivals in its industry. An intend is to develop an understanding of the types of responses by one firm to another's initiative, and the factors that determine that choice of response in specific circumstances. The third chapter will analyze the association between a change in pricing policy regime on dispersion of prices for homogeneous goods. Specifically, this study looks into the effects of minimum Resale Price Maintenance (RPM) on dispersion of contact lens prices by using the retail-level data for the most popular contact lens brand. This paper shows the empirical importance of costly consumer search in price dispersion and consistent with predictions from theoretical literature finds a negative relationship between consumer search and price dispersion.

Download or read book The Theory of Money and Financial Institutions written by Martin Shubik and published by MIT Press. This book was released on 1999 with total page 472 pages. Available in PDF, EPUB and Kindle. Book excerpt: This first volume in a three-volume exposition of Shubik's vision of "mathematical institutional economics" explores a one-period approach to economic exchange with money, debt, and bankruptcy. This is the first volume in a three-volume exposition of Martin Shubik's vision of "mathematical institutional economics"--a term he coined in 1959 to describe the theoretical underpinnings needed for the construction of an economic dynamics. The goal is to develop a process-oriented theory of money and financial institutions that reconciles micro- and macroeconomics, using as a prime tool the theory of games in strategic and extensive form. The approach involves a search for minimal financial institutions that appear as a logical, technological, and institutional necessity, as part of the "rules of the game." Money and financial institutions are assumed to be the basic elements of the network that transmits the sociopolitical imperatives to the economy. Volume 1 deals with a one-period approach to economic exchange with money, debt, and bankruptcy. Volume 2 explores the new economic features that arise when we consider multi-period finite and infinite horizon economies. Volume 3 will consider the specific role of financial institutions and government, and formulate the economic financial control problem linking micro- and macroeconomics.

Download or read book Three Essays on Long Term Borrowing Corporate Finance and Exchange Rates written by Srijana Dhakhwa and published by . This book was released on 1998 with total page 320 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Journal of Economic Literature written by and published by . This book was released on 2007 with total page 398 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Three Essays in Public Economics written by Michael Gerald Smart and published by . This book was released on 1995 with total page 222 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays in Financial Economics written by Rita Biswas and published by Emerald Group Publishing. This book was released on 2019-10-24 with total page 168 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume, dedicated to John W. Kensinger, explores a variety of topics in financial economics, including firm growth, investment risks, and the profitability of the banking industry. With its global perspective, Essays in Financial Economics is a valuable addition to the bookshelf of any researcher in finance.

Download or read book Three Essays on Corporate Governance and Control written by Susan Christine Sassalos and published by . This book was released on 1994 with total page 198 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Global Waves of Debt written by M. Ayhan Kose and published by World Bank Publications. This book was released on 2021-03-03 with total page 403 pages. Available in PDF, EPUB and Kindle. Book excerpt: The global economy has experienced four waves of rapid debt accumulation over the past 50 years. The first three debt waves ended with financial crises in many emerging market and developing economies. During the current wave, which started in 2010, the increase in debt in these economies has already been larger, faster, and broader-based than in the previous three waves. Current low interest rates mitigate some of the risks associated with high debt. However, emerging market and developing economies are also confronted by weak growth prospects, mounting vulnerabilities, and elevated global risks. A menu of policy options is available to reduce the likelihood that the current debt wave will end in crisis and, if crises do take place, will alleviate their impact.

Download or read book Dissertation Abstracts International written by and published by . This book was released on 2009-07 with total page 576 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Resources in Education written by and published by . This book was released on 1998 with total page 352 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Impact of Incomplete Contracts on Economics written by Philippe Aghion and published by Oxford University Press. This book was released on 2015-12-22 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt: The 1986 article by Sanford J. Grossman and Oliver D. Hart titled "A Theory of Vertical and Lateral Integration" has provided a framework for understanding how firm boundaries are defined and how they affect economic performance. The property rights approach has provided a formal way to introduce incomplete contracting ideas into economic modeling. The Impact of Incomplete Contracts on Economics collects papers and opinion pieces on the impact that this property right approach to the firm has had on the economics profession.

Download or read book Platinum Essays in the Philosophy of Applied Economics of Development written by Herbert Onye Orji and published by AuthorHouse. This book was released on 2011-09 with total page 452 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book, Platinum Essays In The Philosophy Of Applied Economics Of Development, is a collection of interrelated and interconnected essays on applied economics of development with underlying philosophy contents. The topic and areas of coverage were carefully chosen to comprehensively reflect a mandatory range of issues, germane to the understanding, teaching, research, publication and practice of applied economics of development, particularly in medium-to low income emerging markets. There are twenty one chapters each with a topic of major developmental significance in applied economics. Based on the clear and lucid underlying philosophical statements, the broad scope of the applied definitions, analytical and descriptive review of relevant modern and dated literatures, germane to the discourse, observations, recommendations, conclusions and range of ease or otherwise of policy implementations, the key objectives of the book have been achieved.

Download or read book New Perspectives in Operations Research and Management Science written by Y. Ilker Topcu and published by Springer Nature. This book was released on 2022-06-24 with total page 606 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book presents innovative operations research applications in business, specifically industrial engineering and its sub-disciplines. It investigates new perspectives in operations research and management science with regard to research methods, the research context, and industrial engineering, offering readers a broad range of new approaches to management problems. The book features the latest work of researchers who have worked with Professor Fusun Ulengin or built upon her work in their academic careers. Written in honor of Prof. Ulengin, this book was edited by her former Ph.D. students, who are now experts in operations research, multiple criteria decision making, competitiveness, logistics, and supply chain management. Prof. Ulengin’s impact in academia is visible in the range of topics and methodologies featured in this book: Location and transportation problems, competitiveness of nations, food supply chains, debt collection, mathematical modelling, multiple criteria decision making, data envelopment analysis, random forests, and Bayesian networks.