Read Books Online and Download eBooks, EPub, PDF, Mobi, Kindle, Text Full Free.
Three Essays On Financing And Investment Decisions In Small Us Firms
Download Three Essays On Financing And Investment Decisions In Small Us Firms full books in PDF, epub, and Kindle. Read online Three Essays On Financing And Investment Decisions In Small Us Firms ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Book Synopsis Three Essays on Financing and Investment Decisions in Small U.S. Firms by : Francis Blaise Roncagli
Download or read book Three Essays on Financing and Investment Decisions in Small U.S. Firms written by Francis Blaise Roncagli and published by . This book was released on 2012 with total page 236 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of three essays related to the financing and investment decisions of small U.S. firms. Each of the essays presents interesting and original empirical research questions, with hypotheses well-grounded in finance and economic theories. The empirical methodology, data and models that are used to test the hypotheses are presented for each essay. The three empirical questions addressed are (1) Why don't small firms take every trade credit discount offered to them? (2) What determines the cash holdings of small firms? and (3) Why do small firms make investments unrelated to their core business? This dissertation answers these questions by analyzing the data available in the National Survey of Small Business Firms (NSSBF) conducted in 1998 and 2003.
Book Synopsis Three Essays on Financial Economics by : Haonan Qu
Download or read book Three Essays on Financial Economics written by Haonan Qu and published by . This book was released on 2011 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this dissertation, I explore the interactions between financial markets and real economy activities. In the first chapter, I use the evidence from an emerging market to study how the development of its financial system could affect activities in its real economy. In the second chapter, I look at excess returns in the US treasury bond market and try to understand the economic fundamentals driving the risk premia. In the final chapter, I examine corporate financing decisions using publicly traded firms in the US. The patterns in their financing decision can be partially explained by the information embedded in the financial market. To what extent the development of sophisticated financial markets benefits emerging economies is an open question. In the first chapter, I use a unique data set on all currency derivative transactions by non-financial firms in 2006 and 2007 in Colombia to provide new evidence on one aspect of this question: the effect of participation in derivatives markets on firm capital formation. I use a difference-in-difference propensity score matching approach in order to control for self selection and common trends. I find a large positive effect: firms using currency derivatives invest on average 5.7 percent more, which is about 40 percent of their average investment rate. This investment-enhancing effect is entirely driven by firms taking long positions (i.e. dollar buying) in the derivatives market. For firms taking short positions, typically exporters, the use of derivatives does not have any discernible impact on investment. One possible explanation is the asymmetry in the impact of the exchange rate movement on exporting and importing firms. In the second chapter, I propose a latent variable approach within a present value model to estimate the expected short rate changes and bond risk premia. This approach aggregates information contained in the history of yield spreads and short rate changes to predict future bond excess returns and short rate changes. I find that the factor from Cochrane and Piazzesi (2005) fails to predict bond excess returns when I consider different maturities of the underlying short rate. From the proposed present value model, I find a significant predictable component in short rate changes with R-square ranging from 29 precent to 80 percent, and a moderate R-square about 12 percent for predicting bond excess returns. Both expected short rate changes and bond risk premia have a persistent component, but bond risk premia are more persistent than expected short rate changes. In addition, the bond risk premia become more persistent as I increase the maturity of the underlying short rate. Finally, I explore the source of the time variation in bond risk premia, and find that monetary policy plays an important role. In the third chapter, I document a strongly decreasing time trend in firms' leverage ratio at their IPO years over the period from 1975 to 2006. This trend survives when typical factors are controlled for, including industry fixed effect. Furthermore, I find that firms listed more recently are more adverse to debt financing. A deeper examination shows that the risk associated with firm's operation provides a limited explanation for this finding. However, the underpinnings of the observed pattern of firms' leverage ratios at IPO are still largely unresolved.
Book Synopsis Essays in Financial Frictions, Entrepreneurship and Economic Development by : Rasim Burak Uras
Download or read book Essays in Financial Frictions, Entrepreneurship and Economic Development written by Rasim Burak Uras and published by . This book was released on 2010 with total page 156 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of three essays that study the economic implications of financial frictions on entrepreneurial investment decision making and aggregate economic performance. The first essay studies investment horizon choice of a distribution of entrepreneurs when a fraction of the financiers within the economy consists of impatient type of lenders. The second essay studies the effects of financial contract enforcement in promoting productive entrepreneurship and economic development. The third essay studies the link between financial development and entrepreneurial capital-labor management. In the first essay, I study the effects of incomplete insurance in financial contracts on risk taking, investment horizon choice and productivity of a distribution of heterogeneous entrepreneurs. I develop a highly-stylized three-period OLG model in which young financiers are heterogeneous in terms of their liquidity needs. As a result, in the model only a fraction of financiers are patient enough to consider their long term lending opportunities. The lending options of financiers are short and long term and any combination of both which result in either short term or long term investment projects undertaken by entrepreneurs. In this setting, equilibrium investment composition (short term vs. long term) and productivity levels of entrepreneurs are determined by their intrinsic entrepreneurial ability distribution, as well as by the fraction of the patient type of financiers in the economy. When productivity improves, entrepreneurial firms increase their capital investment; however, whether they shift to long term oriented projects or not is strongly linked with the liquidity needs of the financiers. Cross-country data shows a positive correlation between a nation's contract enforcement level and its ability to adopt modern technologies. In the second essay of my dissertation, I study the role entrepreneurial incentives play in shaping this empirical observation. I develop and solve a life-cycle model with limited financial contract enforcement, entrepreneurial heterogeneity (ability and financial pledgeability) and technology choice. In the model production processes can be undertaken using either the Traditional or the Modern technology. Depending on the entrepreneurial ability, the modern technology can be more productive relative to the traditional technology, but the former requires a long-term investment making entrepreneur's pledgeability important in his choice. In equilibrium the level of contract enforcement and entrepreneurial characteristics endogenously determine (1) the investment size and (2) the technology choice. Key results of the paper indicate that when financial contract enforcement is weak, the investment size and the intensity of modern technology use of entrepreneurial firms are positively correlated with financial pledgeability. Collateral-building associated with short term investment is important for the results. I calibrate the model to study its quantitative properties. Quantitative experiments illustrate sizeable positive effects of financial contract enforcement on aggregate output and aggregate modern technology adoption for the U.S. economy. Furthermore, counterfactual analysis shows that if financial contract enforcement in Turkey (a low enforcement economy) improves to the U.S. level (a high enforcement economy), output rises by 13-15%; and one third of this change is due to the increase in the rate of modern technology adoption. The third essay in my dissertation provides a quantitative analysis on the effects of firm level financial characteristics in explaining the observed industry-wide productivity heterogeneity in U.S. firm level data. In the first part of the essay, I develop a model in which the interplay between capital and financial market frictions endogenously determine capital-labor ratio decisions of entrepreneurial firms. In this economy capital is costly to rent to some producers due to investment related moral hazard. Therefore, it is beneficial for such entrepreneurs to purchase the capital good instead of renting it. Entrepreneurs can internalize the cost of capital by borrowing in the financial market. However, the amount which can be borrowed is constrained by an entrepreneurs financial market reputation (pledgeability) and his financial asset liquidity (collateral). In equilibrium, firms with lower pledgeability and/or lower liquidity become more labor intensive relative to firms with higher pledgeability and/or liquidity. Distortions to capital rental rates augment the sensitivity of capital-labor choice with respect to firm level financial pledgeability and liquidity. In the second part of the essay, the analytical results are tested in a panel data analysis. Using proxies for "labor intensive production", "financial pledgeability", and "financial asset liquidity" for a large sample of U.S. firms from Compustat North America, I show that low pledgeability and low asset liquidity are associated with labor intensive production. The third part of the essay provides a quantitative analysis. I choose seven major industries in the U.S. economy. For these industries, I show that ability to borrow against financial pledgeability and asset liquidity mitigate the distortionary effects of non-uniform capital rental rates and decrease intra-industry productivity dispersion while increasing industry total factor productivity by quantitatively important proportions. However, there are differential effects of financial pledgeability and financial asset liquidity on aggregate industry performance. My results suggest that the way sectoral firms benefit from the presence of financial pledgeability and asset liquidity depend on sector specific characteristics.
Book Synopsis Three Essays on Entrepreneurial Finance: Exploring Entrepreneurs and Venture Capitalists' Decision-making in Investment Processes by : Michael M. Wenzel
Download or read book Three Essays on Entrepreneurial Finance: Exploring Entrepreneurs and Venture Capitalists' Decision-making in Investment Processes written by Michael M. Wenzel and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Three Essays In Cross-border Finance by : Moon Sub Choi
Download or read book Three Essays In Cross-border Finance written by Moon Sub Choi and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Ph.D. dissertation investigates various areas in financial economics: market microstructure, corporate finance, asset pricing, and financial econometrics. The three comprising essays have a common ground: cross-border finance. Chapter One documents the impact of differential private information on relative asset pricing across borders by studying the probability of informed trading (PIN) for Canadian shares traded on exchanges separated by Niagara Falls. Relative to the New York Stock Exchange (NYSE), the Toronto Stock Exchange (TSX) has more informed trades and accounts for a larger information share, indicating that informed traders contribute to cross-border price discovery. The information imbalance across the two markets is associated with small but positive price premiums for New York trades. The dynamics of these premiums depends on trade informedness. Lastly, the PIN of a TSX -listed share typically rises upon cross-listing on the NYSE, which is consistent with negative abnormal returns of the original listing. The theory of corporate governance suggests that managers of poorly governed firms are more likely to make poor investment decisions, and the evidence on high antitakeover provision (ATP) firms is consistent. In Chapter Two, I study the effect of domestic and foreign takeovers by U.S. firms and find that high-ATP bidders tend to pay relatively high premiums for either targets. While this suggests that these firms make poor decisions, high-ATP bidders also experience relatively high event study returns at times of foreign takeover news. This contradicts the findings of Masulis et al. (2007) for domestic takeovers. Finally, Chapter Three explores the convergence between the prices of American Depositary Receipts (ADRs) listed by Asia-Pacific firms and their original shares listed on home exchanges. Instead of relying on conventional parametric approaches that carry embedded model-specification errors, I contribute to the literature by introducing a nonparametric technique to estimate the convergence speed parameter. I present the time-varying characteristics of both firm and country-level convergence speed parameters. Furthermore, I empirically verify and visually corroborate the comparative dynamics of convergence with respect to short sales restrictions, trading time differences, and market-tier measures proxied by the Morgan Stanley Capital International indices. I conclude that enhancement in market efficiency accelerates the reversion to the parity of ADR -pairs.
Book Synopsis Essays on Finance of Innovation, Firm Dynamics, and Economic Growth by : Sina T. Ateş
Download or read book Essays on Finance of Innovation, Firm Dynamics, and Economic Growth written by Sina T. Ateş and published by . This book was released on 2015 with total page 386 pages. Available in PDF, EPUB and Kindle. Book excerpt: Aggregate productivity, fundamental cause of long-run economic growth, plays a crucial role in determining economic development and living standards of nations. The main source of aggregate productivity growth is technological advances that are the outcomes of firms' and entrepreneurs' innovative activity. Complementary to the growing literature that studies how firm dynamics shape technological change, my dissertation focuses on how financial decisions of these agents affect this process. The three chapters of my dissertation provide theoretical, empirical, and quantitative investigation of the interplay between financial and innovative actions of heterogeneous firms along with its implications on aggregate productivity growth. Chapter one studies the impact of financial system on net firm entry, an important source of aggregate productivity growth. Selective funding of most promising ideas by financial intermediaries creates a trade-off between the mass of entrant firms and their average contribution to aggregate productivity. This chapter highlights the relevance of firm heterogeneity for the relationship between finance and growth, and discusses the theoretical and empirical implications of the resulting trade-off in firm entry. Chapter two also builds on the above mass-composition link, and uses it to study the permanent productivity losses due to sudden stops (SS). The model embeds the main mechanism into a real business cycle small open economy framework to measure the forgone productivity contribution of entrants deprived of funding. The theoretical prediction is that, during SS, smaller yet on average more productive cohorts enter the market. Chilean plant-level data that cover the 1998 SS verify this prediction, while the calibrated model demonstrates the quantitative significance of heterogeneity and selection in measuring the long-run productivity loss. Chapter three focuses on a specific financial intermediary that is especially relevant to innovation and growth, namely venture capital (VC) finance. It studies VC's quantitative impact on firm dynamics and economic growth using a new dynamic equilibrium model of technological change with heterogeneous firms and an explicit VC market. Distinctively, the model incorporates a unique feature of VC firms: their operational knowledge (OK) bundled with their investment. Experiments based on the estimated model highlight the quantitative relevance of OK and analyze policy implications.
Book Synopsis Three Essays on Entrepreneurship and Personal Finance by : Derek Potter
Download or read book Three Essays on Entrepreneurship and Personal Finance written by Derek Potter and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Self-employment and the operation of private businesses form an important sector of the U.S. labor market, accounting for over 400,000 new organizations launched annually in recent years and nearly two-thirds of job creation according to the Small Business Administration. Yet, ownership of a business is fraught with financial risks, leading some economists to suggest that the average lifetime earnings of private business owners trail those of traditional employment. The three essays that follow explore (a) the motives that may drive people to pursue entrepreneurship despite the financial risk, (b) the asset allocation behavior of practicing entrepreneurs, and (c) the resulting satisfaction levels of those who transition into entrepreneurship. The first essay examines a population of users in the pre-launch phase of business development. Past research has suggested that given the lower expected financial returns from entrepreneurship that motivations to launch a business might be driven by preferences for high degrees of autonomy, overly optimistic assessments of financial outcomes, or higher risk preferences. Measures of each of these phenomena are included in a cohesive model guided by the Theory of Planned Behavior along with other relevant variables. Logistic regression predicting intent to launch a business in the future reveals that more general attitudes towards entrepreneurship increase the likelihood of interest in business ownership, while financial motivations are tied to decreased likelihood. The second essay examines the impact of business ownership during the operation of the business. Granted that business owners possess illiquid private organizations, Modern Portfolio Theory might predict that they reduce exposure to other risky asset classes (e.g., stocks). This essay examines stock ownership with consideration given to entrepreneurial status as well as the level of risk exposure stemming from owning a business. Logistic regression using data from the 2016 Survey of Consumer Finances reveals that business owners are less likely to participate in the stock market. An Ordinary Least Squares regression modeling the ratio of equity to total financial assets, however, reveals no significant differences in levels of equity ownership among business owners and the traditionally employed. Collectively, these findings may indicate that entrepreneurs face initial barriers to stock market investment that later fade if participation in the equity market does begin. Finally, the third essay utilizes longitudinal 2008-2014 Health and Retirement Study data to examine levels of job, financial, and life satisfaction. Variable selection is guided by the Job-Demand-Control model, and three random effects cumulative logits are produced. Findings suggest that transitions into entrepreneurship are associated with increased odds of job satisfaction but reduced odds of financial or life satisfaction. Results from these three studies imply that individuals might pursue entrepreneurship for non-financial reasons. However, engaging in the launch of a business could affect financial decision making and asset allocation behavior, as well as subsequent levels of satisfaction with personal finances and life. Implications for organizations and professionals who support prospective entrepreneurs are discussed.
Book Synopsis Three Essays on Equity Financing by : Vikram Nanda
Download or read book Three Essays on Equity Financing written by Vikram Nanda and published by . This book was released on 1991 with total page 198 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Three Essays in Applied Finance by :
Download or read book Three Essays in Applied Finance written by and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Essays in Innovation and Entrepreneurial Finance by : Paul P. Momtaz
Download or read book Essays in Innovation and Entrepreneurial Finance written by Paul P. Momtaz and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of three chapters.In Chapter 1 of the dissertation, I contribute to the inconclusive literature on labor empow- erment and corporate innovation. The paper exploits a law that creates Labor-Controlled Firms (LCFs) for identification in a regression discontinuity design using administrative data that link employers, inventors, and patents in Germany. The law mandates that firms with more than 500 or 2,000 employees have a minority (33%) or parity (50%) share of labor-elected directors on their boards, respectively. Local average treatment effects on the number of patents and the forward citation-weighted number of patents per LCF are significantly positive at both the minority and parity cutoffs, although forward citations per patent are significantly negative at the parity cutoff. The results suggest that labor control causes innovative productivity to increase at the expense of a relative shift from exploratory toward exploitative search. Auxiliary tests support this conclu- sion. Labor control insures employed inventors against adverse labor market shocks, increasing firm-related specialization through longer employment spells while reducing the intensive margin of innovative labor supply. Moreover, inventors' marginal income per patent is insensitive to the quality of the patent when the employer is labor-controlled, suggesting a lack of financial incen- tives for exploratory search in LCFs. In Chapter 2, we estimates that shares in Private Investments in Public Equity (PIPEs) offered a discount of 3% for each year during which these shares could not be resold. The discount can be substantially larger in offerings in which marketability is a greater concern. Our estimates make use of the duration of the resale restriction and information about the effects of a regulatory change. In 2008, the SEC amended Rule 144 to shorten the default statutory holding period. Our estimates are smaller than previous estimates and robust to various controls and endogeneity concerns. In Chapter 3, we offer evidence from acquisition decisions that suggests that antitakeover pro- visions (ATPs) may increase firm value when internal corporate governance is sufficiently strong. We document that, in Germany, firms with stronger ATPs, and particularly supermajority provi- sions, are better acquirers. Managers of high-ATP firms create value in acquisitions by making governance-improving deals. They are more likely to engage in acquisitions that reduce their own entrenchment level and less likely to invest in declining industries. The empirical evidence is consistent with a short-termist interpretation. Takeover threats can induce myopic investment decisions, which ATPs can mitigate. They also lead managers to engage more often in value- creating long-term and innovative investing, and increase their sensitivity to investment opportu- nities. Our findings contribute to a growing literature challenging conventional wisdom that the agency-increasing effect of ATPs empirically dominates the myopia-eliminating effect, suggesting that a more contextual view of the value implications of ATPs is necessary.
Book Synopsis Three Essays in Finance by : Feifei Li
Download or read book Three Essays in Finance written by Feifei Li and published by . This book was released on 2005 with total page 322 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Essays on Industrial Organization and Financial Economics by : Xiaoye (Phoebe) Tian
Download or read book Essays on Industrial Organization and Financial Economics written by Xiaoye (Phoebe) Tian and published by . This book was released on 2021 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation explores how imperfections in financial markets affect decisions made by market participants and subsequent market outcomes. The three chapters in this dissertation focus on three different financial markets: corporate lending market for small firms in China, refinance market for residential mortgage in US and retail investment product market in China. The first chapter studies inefficiencies arising from the lack of long-term contracting between borrower (firm) and lender (bank). I draw on a proprietary data from a Chinese bank, which only offers one-year term loans for small firms. How, and to what extent can default risk be reduced if they were able to enter long-term contract? I develop a dynamic model of business lending to analyze borrower's default incentives in an environment with imperfect information and learning. Estimation of the structural model implies that over seventy percent of observed defaults are strategic borrower defaults. In the counterfactual model, banks are able to offer long-term contingent contract which involves a schedule of future lending terms that can vary with time and firm's financial status. I find that optimal long-term contract has two main benefits: First, by frontloading prices, it alleviates agency frictions and disincentivizes willful defaults. Second, by cross-subsidization, it provides insurance for firms against negative shocks. As a result, with long-term contracting 17% fewer firms default, and total firm outputs expand by 2.6%. The second chapter (joint with Chen Zheng) studies the unintended consequences arising from program design, and how it augments the market power of incumbent lenders, in the context of a federal program called Home Affordable Refinance Program. We build a dynamic discrete choice model of refinance decision where the payoff is generated from a search and negotiation process. We estimate the model using data on program participation and pricing decision. The estimation exploits a significant change to the program design that gives exogenous variation in the competitive advantage of incumbent lenders under the program. In a counterfactual where the advantage granted by program design is shut down, we find that it leads to an average welfare improvement of 4,977. The insight from this study could apply to other policies whose implementation depends on intermediaries with incumbency advantage with respect to targeted agents. In the third chapter, I develop an empirical structural model of the wealth management sector in China in order to analyze the welfare impact of the proposed regulation aimed at ending the prevalence of the implicit guarantee in this industry. The implicit guarantee means the bank implicitly promises the returns on wealth management products to investors, and investors choose from differentiated wealth management products based on characteristics including guaranteed returns. In the counterfactual post-regulation scenario, the bank does not guarantee returns, and it only serves as an intermediary charging a constant fee, shifting the underlying risk of investment to investors. The change of consumer welfare hinges on two forces-the adjustment of the bank's markups and investor's disutility of risk. Empirical findings suggest that the markup decreases moderately, but not enough to completely compensate for investor's aversion of risk, so consumer surplus drops slightly as a result of the regulation.
Book Synopsis Three Essays in Financial Markets. The Bright Side of Financial Derivatives: Options Trading and Firm Innovation by : Iván Blanco
Download or read book Three Essays in Financial Markets. The Bright Side of Financial Derivatives: Options Trading and Firm Innovation written by Iván Blanco and published by Ed. Universidad de Cantabria. This book was released on 2019-02-15 with total page 90 pages. Available in PDF, EPUB and Kindle. Book excerpt: Do financial derivatives enhance or impede innovation? We aim to answer this question by examining the relationship between equity options markets and standard measures of firm innovation. Our baseline results show that firms with more options trading activity generate more patents and patent citations per dollar of R&D invested. We then investigate how more active options markets affect firms' innovation strategy. Our results suggest that firms with greater trading activity pursue a more creative, diverse and risky innovation strategy. We discuss potential underlying mechanisms and show that options appear to mitigate managerial career concerns that would induce managers to take actions that boost short-term performance measures. Finally, using several econometric specifications that try to account for the potential endogeneity of options trading, we argue that the positive effect of options trading on firm innovation is causal.
Book Synopsis Three Essays on Financial Liberalization, Country Risk and Low Growth Traps in Argentina, Mexico and Turkey by : Firat Demir
Download or read book Three Essays on Financial Liberalization, Country Risk and Low Growth Traps in Argentina, Mexico and Turkey written by Firat Demir and published by . This book was released on 2005 with total page 292 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Three Essays on the Financing of Corporations by : Michael W. Becker
Download or read book Three Essays on the Financing of Corporations written by Michael W. Becker and published by . This book was released on 1994 with total page 202 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Essays on Investment and Financing Decisions by : George P. Tsetsekos
Download or read book Essays on Investment and Financing Decisions written by George P. Tsetsekos and published by . This book was released on 1986 with total page 230 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author :Klaus Hammes Publisher :Department of Economics School of Economics and Commercial Law Go ISBN 13 : Total Pages :188 pages Book Rating :4.3/5 (91 download)
Book Synopsis Essays on Capital Structure and Trade Financing by : Klaus Hammes
Download or read book Essays on Capital Structure and Trade Financing written by Klaus Hammes and published by Department of Economics School of Economics and Commercial Law Go. This book was released on 2003 with total page 188 pages. Available in PDF, EPUB and Kindle. Book excerpt:
