International Corporate Finance eJournal最新文献

{"title":"Resource Misallocation Among Listed Firms in China: The Evolving Role of State-Owned Enterprises","authors":"Emilia Jurzik, Cian Ruane","doi":"10.5089/9781513571928.001.A001","DOIUrl":"https://doi.org/10.5089/9781513571928.001.A001","url":null,"abstract":"We document that publicly listed Chinese state-owned enterprises (SOEs) are less productive and profitable than publicly listed firms in which the state has no ownership stake. In particular, Chinese listed SOEs are more capital intensive and have a lower average product of capital than non-SOEs. These productivity differences increased between 2002 and 2009, and remain sizeable in 2019. Using a heterogeneous firm model of resource misallocation, we find that there are large potential productivity gains from reforms which could equalize the marginal products of listed SOEs and listed non-SOEs.","PeriodicalId":13701,"journal":{"name":"International Corporate Finance eJournal","volume":"3 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87243999","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"A Structural Approach to Measuring the Degree of Economic Integration: Evidence From G-7 Countries.","authors":"U. Aysun","doi":"10.2139/ssrn.3789612","DOIUrl":"https://doi.org/10.2139/ssrn.3789612","url":null,"abstract":"This paper infers the degree of economic integration amongst G-7 countries by estimating a two country DSGE model separately for each country in the group. In doing so, the two economies in the model are represented by the observations for a specific country and the corresponding values for the rest of G-7. To infer the degree of economic integration, the model's shock processes are reconfigured so that they include a component that is common for each economy and shocks can be transmitted from one economy to the other. Capturing the degree of economic integration by the relative contribution of common and foreign shocks to the variation of domestic variables, the paper draws inferences that are at odds with those based on more traditional measures of globalization. Countries that are more open to trade and financial flows in the data are ranked lower in terms of economic integration according to post-estimation statistics.","PeriodicalId":13701,"journal":{"name":"International Corporate Finance eJournal","volume":"90 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-02-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90510757","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Are Stock-Market Anomalies Anomalous After All?","authors":"George Chalamandaris, Kuntara Pukthuanthong, Nikolas Topaloglou","doi":"10.2139/ssrn.3752177","DOIUrl":"https://doi.org/10.2139/ssrn.3752177","url":null,"abstract":"We propose a stochastic spanning to evaluate whether anomalies are genuine under factor-model framework. Our approach is nonparametric and does not rely on any assumption of return distribution and investor risk preferences. It depends on the whole distribution of returns, rather than only on the first two moments. Of the anomalies we consider, only a few expand the opportunity set of the risk-averter and have real economic content. Our approach is consistent in identifying genuine anomalies in and out of samples. This is in contrast to mean-variance (MV) spanning tests where anomalies identified in-sample, not out-of-sample.","PeriodicalId":13701,"journal":{"name":"International Corporate Finance eJournal","volume":"90 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-02-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84547439","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Optimal Share of Public Debt in Local Currency","authors":"C. Sarmiento","doi":"10.2139/ssrn.3784343","DOIUrl":"https://doi.org/10.2139/ssrn.3784343","url":null,"abstract":"This paper shows analytically the optimal allocation of public debt between local and foreign currency denominated debt. The stark differences in optimal behavior between developed and developing countries are accounted in terms of larger sensitivity of local interest rates to fiscal deficits in the developing world. The presence of excess saving in the developed economies particularly accentuates this observation.","PeriodicalId":13701,"journal":{"name":"International Corporate Finance eJournal","volume":"4 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-02-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76120733","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Global Opportunity Index 2021: Focus on Latin America","authors":"Oscar F. Contreras, Benjamin Smith, Joseph Bendix, C. Lopez","doi":"10.2139/ssrn.3780183","DOIUrl":"https://doi.org/10.2139/ssrn.3780183","url":null,"abstract":"This report uses the 2021 Global Opportunity Index and its different categories to provide an overview of Latin America's attractiveness to foreign investors, especially when compared to other emerging markets and developing economies (EMDE). It also offers an in-depth look at Latin America's global capital inflows (emphasizing their composition and evolution over the past decade) and the regions' cross-border M&A activity.Overall, the report highlights that many of the main challenges to foreign investors (and, more broadly, to a sound investment climate in the region) stem from the lack of a strong, transparent, and predictable legal framework, including well-functioning legal and judicial systems. Thus, the analysis suggests that Latin American governments must take concrete measures to strengthen the rule of law and tackle the pervasive corruption that undermines public trust.","PeriodicalId":13701,"journal":{"name":"International Corporate Finance eJournal","volume":"10 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-02-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77911283","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Financial Globalization: Effects on Banks’ Information Acquisition and Credit Risk","authors":"Christopher Paik","doi":"10.2139/ssrn.3777745","DOIUrl":"https://doi.org/10.2139/ssrn.3777745","url":null,"abstract":"<b>English Abstract:</b> Financial liberalization accelerates global banks’ entry into new markets where host countries hope to spur investment and economic growth. However, banks sometimes retreat from their global ambitions and exit these new markets. This study demonstrates how difficulties of foreign banks in new markets may emerge due to disadvantages in the ability to assess credit quality compared to that of established domestic banks. We present a duopoly model where two banks conduct investigations in the search of qualified loan borrowers. The model assumes that the domestic bank has a cost advantage in evaluating a borrower’s credit quality compared to the competing foreign bank. Despite the cost heterogeneity, an equilibrium exists in which two such banks coexist in the market. Specifically, the information cost advantaged bank orchestrates a cream skimming strategy which entails lower-price commitments of loan products and higher investigation levels to screen and find low-risk borrowers. In contrast, the information cost disadvantaged bank chooses a bottom fishing strategy which consists of higher-priced loan offers with lower investigation levels. This results in high acceptance rates of high-risk borrowers in the foreign bank’s loan profile and correspondingly, higher default rates. We analyze the results to derive implications for development policy.<br>","PeriodicalId":13701,"journal":{"name":"International Corporate Finance eJournal","volume":"941 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-02-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85563744","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"FDI and Firm Productivity in Host Countries: The Role of Financial Constraints","authors":"Wontae Han, Jian Wang, Xiao Wang","doi":"10.2139/ssrn.3776807","DOIUrl":"https://doi.org/10.2139/ssrn.3776807","url":null,"abstract":"This paper studies the effect of FDI firms' financial advantages on firm productivity in host countries and examines the related policy implications. If FDI firms face lower financing costs but have higher fixed production costs than local firms, a simple Melitz-type model predicts that because of their financial advantages, FDI firms could have even lower cutoff productivity than local firms, especially in financially vulnerable sectors. The same mechanism will also lower the average productivity of FDI firms especially in financially vulnerable sectors, although FDI firms on average are still more productive than local firms. These predictions are supported by the Chinese firm-level data. Then, we study policy implications in a two-country model that resembles these empirical patterns. The counterfactual policy analysis shows that offering tax benefits to FDI firms could be counterproductive because it attracts FDI firms that are even less productive than local firms. The policy in the host country to improve its financial market efficiency could also hurt the country's welfare because of the interaction between financial market reforms and the distortionary taxes imposed on local firms to finance FDI subsidies.","PeriodicalId":13701,"journal":{"name":"International Corporate Finance eJournal","volume":"14 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-01-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84327759","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Does a Sudden Breakdown in Public Information Searches Impede Analyst Forecast Accuracy? Evidence from Google’s Withdrawal from China","authors":"Yangyang Chen, Zi Li, Lijun Ma, Min Zhang","doi":"10.2139/ssrn.3775434","DOIUrl":"https://doi.org/10.2139/ssrn.3775434","url":null,"abstract":"We examine whether the sudden loss of public information search capacity caused by Google’s withdrawal from China affects Chinese analysts’ earnings forecasts. We find that in the period after Google’s withdrawal, analyst forecast accuracy declines, particularly for firms with foreign trade. This decline in analyst forecast accuracy suggests that Google’s withdrawal hinders analysts’ acquisition of firms’ foreign information, which decreases the quality of their earnings forecasts. Consistent with this argument, we find that the effect of Google’s withdrawal is stronger for firms with greater business complexity and more opaque financial reporting. We also find that corporate site visits serve as an alternative information source that can compensate for the information loss caused by Google’s withdrawal. Our evidence suggests a potential cost of limiting the flow of public information about firms in the capital market.","PeriodicalId":13701,"journal":{"name":"International Corporate Finance eJournal","volume":"29 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-01-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73380410","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Who Lends Before Banking Crises? Evidence from the International Syndicated Loan Market","authors":"Mariassunta Giannetti, Yeejin Jang","doi":"10.2139/ssrn.3739393","DOIUrl":"https://doi.org/10.2139/ssrn.3739393","url":null,"abstract":"We show that foreign lenders and low market share lenders extend more credit in comparison to other lenders during lending booms leading to banking crises, but not during other credit expansions. Less established lenders also increase the amount of credit they extend to riskier borrowers, without asking for collateral or imposing covenants and higher interest rates. Our results suggest that taking lenders’ characteristics into account could provide an indicator for how much risk an economy is accumulating and be a useful barometer for macroprudential policies.","PeriodicalId":13701,"journal":{"name":"International Corporate Finance eJournal","volume":"13 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-01-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90390786","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The 4th European Alternative Finance Benchmarking Report","authors":"Tania Ziegler, Rotem Shneor, K. Wenzlaff, Ana Odorovic, Rui Hao, Lukas Ryll","doi":"10.2139/SSRN.3772260","DOIUrl":"https://doi.org/10.2139/SSRN.3772260","url":null,"abstract":"This year’s report is titled ‘Shifting Paradigms’ to, in part, emphasise the continued growth and development of the European Alternative Finance Industry, but also underscore that these patterns of growth can develop and change as the sector continues to develop and mature. Throughout the region, platforms have continued to grow, respond to regulation, and expand operations internationally. In some regions, model prominence has shifted, allowing for others to grow. At times, this has been a response to the development or lack of regulation, or simply a result of competing market forces. \u0000 \u0000Last year’s report, ‘Expanding Horizons’, sought to exemplify the positive developments in European Alternative Finance in 2016 and foreshadowed future developments in the industry. The sector as a whole has continued to expand, and across the board has grown in volume. As with last year, this study captured market data from 45 European countries, and continued to explore issues with regard to innovation, research and development, as well as internationalisation trends. \u0000 \u0000This year’s European Alternative Finance Industry Report has been produced by the Cambridge Centre for Alternative Finance at Cambridge Judge Business School and the University of Agder. This report was generously supported by Invesco and the CME Group Foundation. \u0000 \u0000Highlights from the report \u0000 \u0000This year’s study gathered data from 269 platforms with reported operations in 2017. These 269 platforms were responsible for 519 unique data entries across 45 countries in Europe. The study shows that the total European online alternative finance market (including the UK) grew by 36 per cent to reach €10.44 billion in 2017. The United Kingdom is still the largest individual alternative finance market, albeit with a declining market share from 73 per cent in 2016 to 68 per cent in 2017. Excluding the UK from overall volume, the European online alternative finance industry grew 63 per cent from €2.06 billion to €3.37 billion in 2017. \u0000 \u0000France (€661.37 million), Germany (€595.41 million) and the Netherlands (€279.93 million) remained the top three national markets for online alternative finance by market volume in Europe, excluding the United Kingdom. \u0000 \u0000For the fourth year in a row P2P Consumer Lending accounted for the largest market share of European Alterative Finance (excluding the UK). This model accounted for 41 per cent of all volume and grew by 99.8 per cent from €697 million in 2016 to €1.39 billion in 2017. \u0000 \u0000Internationalisation of platforms is on the rise. In 2017, 88 per cent of platforms reported some level of cross-border inflows, while 61 per cent reported outflows. This represents a growth of 11 per cent for platforms reporting cross-border inflows, and 17 per cent growth for those reporting cross-border outflows. Despite growth in international orientation of platforms, the extent of actual localisation of services, interface and brand remains limited. \u0000 \u0000While in 2016, models tha","PeriodicalId":13701,"journal":{"name":"International Corporate Finance eJournal","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-01-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82313945","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}