ERN: Other Econometrics: Applied Econometric Modeling in Financial Economics - Econometrics of Corporate Finance & Governance (Topic)最新文献

{"title":"Un análisis crítico sobre la posibilidad de permitir las acciones de lealtad en las sociedades cotizadas españolas (A Critical Analysis of the Implementation of Loyalty Shares in Spain)","authors":"Aurelio Gurrea-Martínez","doi":"10.2139/ssrn.3400708","DOIUrl":"https://doi.org/10.2139/ssrn.3400708","url":null,"abstract":"Spanish Abstract: La proyectada reforma de la normativa espanola de sociedades permite que las sociedades cotizadas puedan implementar acciones de lealtad. En esencia, estas acciones permitiran duplicar los derechos de voto de aquellos accionistas que permanezcan en la empresa durante un periodo minimo de dos anos. Para ello, bastara con un acuerdo adoptado por una mayoria reforzada de la junta general. A traves de esta medida, el Gobierno pretende fomentar la implicacion de los accionistas y mejorar el gobierno corporativo de las empresas espanolas, contribuir a la creacion de valor a largo plazo protegiendo a los administradores de posibles presiones de inversores cortoplacistas, y hacer el mercado de valores espanol mas competitivo respecto a sus homologos europeos. Como sera comentado en este trabajo, la incorporacion de las acciones de lealtad no solo no contribuye a los objetivos pretendidos por el Gobierno sino que, de hecho, puede perjudicar la financiacion de empresas, el desarrollo del mercado de valores y el gobierno corporativo de las empresas espanolas. Por este motivo, el legislador espanol no deberia permitir las acciones de lealtad. Y de hacerlo, solo deberia ser para las sociedades no cotizadas que quieran salir a bolsa con este tipo de acciones. De esta manera, los fundadores/socios de control solo tendran incentivos para adoptar las acciones de lealtad cuando crean –y convenzan a los inversores de que sera asi– que los posibles costes de estas acciones en terminos de atrincheramiento en el control de la compania y posible riesgo de oportunismo frente a accionistas minoritarios resultaran inferiores a los posibles beneficios asociados a un hipotetico favorecimiento de la maximizacion a largo plazo del valor de la empresa. \u0000 \u0000English Abstract: This article provides a critical evaluation of the implementation of loyalty shares in Spain. It argues that the implementation of loyalty shares in Spain is not necessary, due to the inexistence of a problem of short-termism. Even if this problem existed, it is also mentioned that there are more desirable solutions to deal with this problem. This articles argues that loyalty shares should not be allowed in Spain. And if so, these shares should only be adopted before going public.","PeriodicalId":367100,"journal":{"name":"ERN: Other Econometrics: Applied Econometric Modeling in Financial Economics - Econometrics of Corporate Finance & Governance (Topic)","volume":"42 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-06-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125135866","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":"Rainy Day Liquidity","authors":"Jing-Zhi Huang, Xin Li, Mehmet Saglam, Tong Yu","doi":"10.2139/ssrn.3387065","DOIUrl":"https://doi.org/10.2139/ssrn.3387065","url":null,"abstract":"Insurance firms are a key player in the corporate bond market. In this study, we consider the role of life insurers as \"rainy day\" liquidity providers who improve liquidity in stressful conditions due to the nature of long-term buy-and-hold investments. To this end, we present evidence that insurers' corporate bond purchases improve bond liquidity during the financial crisis and among downgraded bonds facing selling pressure. Downgraded bonds with greater purchase from life insurers are better priced.","PeriodicalId":367100,"journal":{"name":"ERN: Other Econometrics: Applied Econometric Modeling in Financial Economics - Econometrics of Corporate Finance & Governance (Topic)","volume":"89 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-05-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117331115","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 Pass-Through of Bank Capital Requirements to Corporate Lending Spreads","authors":"Robert Bichsel, Luisa Lambertini, Abhik Mukherjee, Dan Wunderli","doi":"10.2139/ssrn.3395170","DOIUrl":"https://doi.org/10.2139/ssrn.3395170","url":null,"abstract":"Abstract We study the impact of higher bank capital requirements on corporate lending spreads using granular bank- and loan-level data. Our empirical strategy employs the heterogeneity in capital requirements across banks and time of implementation in Switzerland. We find that changes in the capital deviation from the regulatory minimum affect lending spreads asymmetrically. In response to a reduction in the capital deviation, banks with deficits with respect to their risk-weighted capital requirement raise spreads relative to banks with surpluses and de-leverage. Banks respond to higher requirements by raising spreads and, for deficit banks, by cutting lending.","PeriodicalId":367100,"journal":{"name":"ERN: Other Econometrics: Applied Econometric Modeling in Financial Economics - Econometrics of Corporate Finance & Governance (Topic)","volume":"13 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-05-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123154789","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":"Determinants of Capital Structure: Evidence from the Hotel Sector in Sri Lanka","authors":"D. Arachchi","doi":"10.2139/ssrn.3379177","DOIUrl":"https://doi.org/10.2139/ssrn.3379177","url":null,"abstract":"The purpose of this paper is to investigate the factors affecting capital structure decisions of listed hotel companies in Colombo Stock Exchange (CSE). Different classical capital structure theories are reviewed such as Modigliani and Miller Model (M & M Theory), trade-off theory (TOT) and pecking order theory (POT) to formulate testable propositions concerning the determinants of debt levels of the companies. The model is estimated using a panel data approach for twenty five CSE companies for the period of 2009-2015. Regression models were used to test variables representing growth opportunities, firm size, profitability, effective tax rate, operational risk, tangibility and net commercial credit position. The findings suggest that profitability, growth opportunities, and net commercial credit position are related negatively to the debt ratio, while firm size, tangibility, operational risk and effective tax rate do not appear to be related to the debt ratio. Although the findings partially support both the pecking order theory (POT) and trade-off theory (TOT), neither the trade-off nor the pecking order theory exactly seem to explain the capital structure of Sri Lankan hotel companies.","PeriodicalId":367100,"journal":{"name":"ERN: Other Econometrics: Applied Econometric Modeling in Financial Economics - Econometrics of Corporate Finance & Governance (Topic)","volume":"36 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-04-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127500329","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":"Determinants of Optimal Capital Structure and Speed of Adjustment: Evidence From the U.S. ICT Sector","authors":"G. Canarella, S. Miller","doi":"10.2139/ssrn.3354975","DOIUrl":"https://doi.org/10.2139/ssrn.3354975","url":null,"abstract":"We employ a dynamic adjustment model (Flannery and Rangan, 2006) to investigate the determinants of capital structure and speed of adjustment (Drobetz and Wanzenried, 2006) in a panel of 85 U.S. ICT firms over the years 1990 to 2013. We estimate the capital structure using a wide range of factors commonly used in the empirical literature (growth and investment opportunities, profitability, firm size, default risk, and industry median capital structure). We expand on this literature to include two additional determinants: asset turnover, an inverse measure of firm agency costs (Morellec, et al., 2012; Ang, Cole, and Lin, 2000), and RD Hsiao, et al., 2002). In addition, our panel-data regression results show that in the ICT sector, the leverage ratio exhibits high persistence. Moreover, it positively relates to growth and investment opportunities, firm size, capital investment, and industry median capital structure, and negatively relates to profitability and default risk.","PeriodicalId":367100,"journal":{"name":"ERN: Other Econometrics: Applied Econometric Modeling in Financial Economics - Econometrics of Corporate Finance & Governance (Topic)","volume":"19 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-03-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124864374","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 Influence of Dividend Policy and Income Tax on Income Smoothing","authors":"F. Firnanti","doi":"10.35609/afr.2019.4.1(3)","DOIUrl":"https://doi.org/10.35609/afr.2019.4.1(3)","url":null,"abstract":"Objective - This research aims to obtain the empirical evidence on the influence of dividend policy, income tax, firm size, profitability, and leverage on income smoothing.\u0000\u0000Methodology/Technique - In this research, income smoothing is proxied with the Eckel index and logistic regression is used to test the hypothesis. The research population consists of non-financial companies listed on the Indonesian Stock Exchange from 2013 to 2016. The sampling method used in this research is purposive sampling. The number of companies selected is 79 with 316 data.\u0000\u0000Findings - The results show that dividend policy, income tax, profitability, and leverage all have an influence on income smoothing. Meanwhile, firm size has no significant influence on income smoothing.\u0000\u0000Novelty - These findings are consistent with a firm's dividend policy and income tax having an incremental impact on income smoothing behavior.\u0000\u0000Type of Paper Empirical.\u0000\u0000Keywords: Income Smoothing; Dividend Policy; Income Tax; Firm Size; Profitability; Leverage.\u0000\u0000JEL Classification: M40, M41, M49.\u0000\u0000DOI: https://doi.org/10.35609/afr.2019.4.1(3)","PeriodicalId":367100,"journal":{"name":"ERN: Other Econometrics: Applied Econometric Modeling in Financial Economics - Econometrics of Corporate Finance & Governance (Topic)","volume":"115 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-03-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117149536","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":"Do Credit Ratings Matter? Evidence from S&P's 2013 Methodology Revision","authors":"Tim Liu, Anil Shivdasani","doi":"10.2139/ssrn.3245633","DOIUrl":"https://doi.org/10.2139/ssrn.3245633","url":null,"abstract":"Exploiting exogenous variation introduced by a significant change in S&P’s methodology, we show that credit ratings have a first-order causal impact on capital structure and investment decisions. Quantifying debt capacity within a firm’s credit rating (Ratings Capacity) using precise metrics, we show that capital structure is highly sensitive to changes in Ratings Capacity. Credit ratings explain more variation in capital structure changes than other firm-specific determinants. Firms with low adjustment costs and attractive investment opportunities are more responsive to Ratings Capacity. Increased Ratings Capacity causes significant expansion in investment and reductions in share repurchases, suggesting wide impacts on financial policy.","PeriodicalId":367100,"journal":{"name":"ERN: Other Econometrics: Applied Econometric Modeling in Financial Economics - Econometrics of Corporate Finance & Governance (Topic)","volume":"193 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122183912","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":"Dividend Payments and Excess Cash: An Experimental Analysis","authors":"Z. Tingting Jia, M. McMahon","doi":"10.2139/ssrn.3377440","DOIUrl":"https://doi.org/10.2139/ssrn.3377440","url":null,"abstract":"There is an observed positive correlation between the size of firms’ dividends and the amount of cash they keep on hand. We specify a new channel of precautionary cash holdings as related to dividend-smoothing, which predicts that increased dividends should cause firms to keep more cash on hand. In the reverse direction, theory’s predictions depend on the source of the increased cash on hand. General dividend-smoothing theory predicts that temporary increases in cash due to natural market fluctuations should not affect dividends. If the increased cash is due to a permanent increase in profitability, both the marginal benefit and the marginal cost of paying dividends also increase, and the net effect is unclear. Theory’s predictions of causality cannot be tested empirically using observed firm data, however, due to an underlying endogeneity issue. We instead turn to a laboratory experiment to determine causality. In the lab, we separately and exogenously vary each relevant variable to test each theoretical hypothesis. Increased dividends lead to increased cash on hand. One-time increases in firms’ cash on hand, representing natural market fluctuations, do not affect firms’ dividends. Increases in cash on hand due to a permanent increase in firm profitability, however, cause dividends to decrease.","PeriodicalId":367100,"journal":{"name":"ERN: Other Econometrics: Applied Econometric Modeling in Financial Economics - Econometrics of Corporate Finance & Governance (Topic)","volume":"17 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116270584","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":"Priority Spreading of Corporate Debt","authors":"Dominique C. Badoer, Evan Dudley, C. James","doi":"10.2139/ssrn.2889315","DOIUrl":"https://doi.org/10.2139/ssrn.2889315","url":null,"abstract":"\u0000 Priority spreading refers to the practice of firms increasing their reliance on secured and subordinated debt and reducing their reliance on senior debt as their credit quality deteriorates. We argue that priority spreading occurs because security provides creditors with greater protection from dilution from other creditors than do covenants that prioritize payments. Consistent with this argument, we find that secured bank creditors are rarely diluted by junior creditors in distressed restructurings, whereas senior unsecured creditors are frequently diluted, exogenous increases in asset volatility result in greater priority spreading and yields on senior and subordinated bonds converge as asset volatility increases.\u0000 Received January 22, 2018; editorial decision January 27, 2019 by Editor David Denis. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.","PeriodicalId":367100,"journal":{"name":"ERN: Other Econometrics: Applied Econometric Modeling in Financial Economics - Econometrics of Corporate Finance & Governance (Topic)","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-01-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124263211","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":"Collateralized Debt Obligations","authors":"Wawan Lie, Junita Waode ndika","doi":"10.2139/ssrn.3320280","DOIUrl":"https://doi.org/10.2139/ssrn.3320280","url":null,"abstract":"We find that credit rating is the most important variable in determining tranche spread at issue on Collateralized Debt Obligations (CDOs) issues backed by project finance (PF) loans. Factors that are important for pricing in the case of corporate bonds, such as market liquidity and weighted average maturity, are also relevant for determining spreads on these securities. Furthermore, the nature of the underlying assets has a substantial impact on CDO pricing: primary market spread is significantly higher when the underlying PF loans bear a higher level of market risk and when the proportion of projects still under construction in the securitized portfolio is larger.","PeriodicalId":367100,"journal":{"name":"ERN: Other Econometrics: Applied Econometric Modeling in Financial Economics - Econometrics of Corporate Finance & Governance (Topic)","volume":"17 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-01-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121408341","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}