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

{"title":"Deferred CEO Compensation and Firm Investment Decisions","authors":"YoungHa Ki, T. Mukherjee","doi":"10.2139/ssrn.2901805","DOIUrl":"https://doi.org/10.2139/ssrn.2901805","url":null,"abstract":"For more than a decade, to reduce the agency problem, various ways have been examined on how to align the interest of manager with shareholders. However, evidence and empirical findings are conflicting on the agency problem. Recently, deferred compensation as one of incentive compensations draws the attention as a means to incentivize CEOs to make them work for the firm. However, it is still not evident if deferred compensation has effect on aligning CEOs with the firm’s goal possibly due to the issue on data. Therefore, the first essay investigates if deferred compensation has the effect on the agency problem and on the improvement of the firm performance after dealing with the data issue. This paper mainly aims to investigate if there is a non-linear relationship between the investment choice problem and the deferred compensation as Jensen and Meckling (1976) claim. This paper concludes that deferred compensation from NQDC table has positive and significant effect on the firm performance and the investment choice problem. Following McConnell and Servaes (1990), this paper finds the curvilinear relationship between Tobin’s Q and the deferred compensation and can confirm Jensen and Meckling (1976) theoretical application.","PeriodicalId":367100,"journal":{"name":"ERN: Other Econometrics: Applied Econometric Modeling in Financial Economics - Econometrics of Corporate Finance & Governance (Topic)","volume":"106 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"117227936","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":"Relevanz der deutschen Zinsschranke für Personenunternehmen – Eine dynamische Analyse der Betroffenheit (Relevance of the German Interest Barrier for Partnerships – A Dynamic Analysis of Consternation)","authors":"Stephan Alberternst","doi":"10.2139/SSRN.2786578","DOIUrl":"https://doi.org/10.2139/SSRN.2786578","url":null,"abstract":"German Abstract: Empirische Untersuchungen zur Relevanz der Zinsschranke betrachten in der Regel lediglich Kapitalgesellschaften und bilden somit nur einen Bruchteil der potentiell betroffenen Unternehmen ab. Auf Basis eines umfangreichen balancierten Panels analysiere ich anhand von handelsrechtlichen Jahresabschlussdaten den Einfluss der Zinsschranke auf Personenunternehmen. In Abhangigkeit vom jeweiligen Jahr sind im Zeitraum von 2008 bis 2012 zwischen 64 (2,9%) und 73 (3,3%) Personenunternehmen in der Stichprobe potentiell von der Zinsschranke betroffen. Die balancierte Panelstruktur liefert zudem Hinweise darauf, dass ein erheblicher Teil der Personenunternehmen, die zumindest in einem Jahr betroffen sind, dieses auch uber einen langen Zeitraum bleiben (49,53%). Die Zins- und EBITDA-Vortrage steigen im Zeitablauf nahezu linear pro betroffenem Personenunternehmen an, fuhren jedoch nicht, wie politisch beabsichtigt, zu einer langfristigen Reduzierung der Anzahl der betroffenen Unternehmen. Zudem weisen von der Zinsschranke betroffene Personenunternehmen signifikant hohere Fremdkapitalquoten auf, sind weniger rentabel und groser als die nicht betroffenen Personenunternehmen. Ebenso ist zu erkennen, dass die betroffenen Gesellschaften eine hohere Sicherheitenquote, ein hoheres Insolvenzrisiko, eine niedrigere Liquiditat und ein niedrigeres Innenfinanzierungsvolumen sowie ein hoheres operatives Risiko aufweisen. Daruber hinaus deutet ein Vergleich der betroffenen Personenunternehmen mit den betroffenen Kapitalgesellschaften darauf hin, dass die Kapitalgesellschaften sich in einer wirtschaftlich schlechteren Situation als die entsprechenden Personenunternehmen befinden. Unter Verwendung eines Propensity Score Matchings kann fur Personenunternehmen der vermutete Zusammenhang, dass betroffene Personenunternehmen ihre Fremdkapitalquote starker reduzieren als nicht betroffene Personenunternehmen und ebenso der Einfluss von Liquiditatsproblemen, nicht auf einem statistisch signifikanten Niveau gezeigt werden.English Abstract: Empirical studies, which deal with the relevance of the interest barrier, are focusing on corporations, and thus only consider a part of potentially affected companies. Based on a large balanced panel, I analyze financial statement data of German partnerships with regard to how they are influenced by the interest barrier. Depending on the specific year within the time horizon of 2008 and 2012, between 64 (2.9%) and 73 (3.3%) of the partnerships in the sample are potentially affected by the interest barrier. Due to the balanced panel-structure, I am able to identify that a significant part of the partnerships, which fall under the barrier at least in one year, remain affected by this constraint for a longer period (49.53%). The interest and EBITDA carry-forwards increase nearly on a linear basis within the considered time horizon. However, these effects do not result in a reduction in the numbers of affected partnerships, as origin","PeriodicalId":367100,"journal":{"name":"ERN: Other Econometrics: Applied Econometric Modeling in Financial Economics - Econometrics of Corporate Finance & Governance (Topic)","volume":"34 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-05-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129298737","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":"Asymmetric Foreign Exchange Cash Flow Exposure: A Firm-Level Analysis","authors":"Alain A. Krapl","doi":"10.2139/ssrn.2758263","DOIUrl":"https://doi.org/10.2139/ssrn.2758263","url":null,"abstract":"This study analyzes foreign exchange (FX) cash flow and equity exposures of a sample of U.S. multinational firms. Focusing on asymmetry in FX cash flow exposures to direction and magnitude of FX shocks, the study finds that asymmetry is pervasive in several alternative measures of FX cash flow exposure. Also, after decomposing FX equity exposures into discount rate and cash flow components, the study documents significant asymmetries in FX discount rate exposures. The latter finding implies that market-related factors in addition to cash flow–based arguments need to be considered when further exploring FX equity exposure. This study also highlights the importance of model specification: models with asymmetric specifications detect more firms with significant FX exposures.","PeriodicalId":367100,"journal":{"name":"ERN: Other Econometrics: Applied Econometric Modeling in Financial Economics - Econometrics of Corporate Finance & Governance (Topic)","volume":"38 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122361575","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 Debt Curb Controlling Shareholders’ Private Benefits? Modelling in a Contingent Claim Framework","authors":"Hubert de la Bruslerie","doi":"10.2139/ssrn.3447201","DOIUrl":"https://doi.org/10.2139/ssrn.3447201","url":null,"abstract":"Debt is not frequently analyzed in relation to the conflict between controlling and outside shareholders. At the same time, debt leverage stands as a key variable in the design of a control contract as it has a strong disciplinary role. A simple option valuation model is used to show that debt is also a governance variable because it can moderate or enhance private benefits. It is argued that a asymmetrical self-regulation mechanism may develop in the case of control by a dominant shareholder. At low levels of leverage, debt is relatively less disciplinary compared with a non-private benefits case. When leverage exceeds a certain threshold point, it becomes strongly disciplinary. We show that under given conditions, a self-regulation mechanism develops where the controlling shareholder is incentivized to hold less debt when he/she wants to increase his/her private appropriation rate.","PeriodicalId":367100,"journal":{"name":"ERN: Other Econometrics: Applied Econometric Modeling in Financial Economics - Econometrics of Corporate Finance & Governance (Topic)","volume":"50 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-04-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116631247","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":"CEO Inside Debt Compensation and Performance of the Real Sector Firms during Crisis","authors":"S. Siddiqui, A. Rahman","doi":"10.2139/ssrn.3926744","DOIUrl":"https://doi.org/10.2139/ssrn.3926744","url":null,"abstract":"This paper tests whether CEO inside debt incentive has any relation with the performance of the real sector firms during crisis. Agency theory predicts that a relatively high proportion of inside debt compensation aligns CEO interest with debt holders, who prefer less risky investment. Research on banking sector finds that this alignment of interest makes bank CEOs conservative decision makers and augments the firm performance during crisis. Motivated by these findings, we expect the CEOs of real sector with higher inside debt to be risk averse as well during crisis period and thus increase the performance of the firm. Using a sample from S&P 1500 firms of the U.S. over the period of 2006-2010, we find that, as predicted, CEO relative inside debt is positively associated with the accounting measure of performance as measured by return on assets (ROA). CEO inside debt is also positively associated with alternative measure of firm performance reflecting firm’s investment value as measured by the Tobin’s Q, although it loses significance to some extent. We address potential endogeneity between inside debt and firm performance using 3SLS regressions and find the same result as of Pooled OLS. Results are robust to the sample of core crisis period of 2008-09 and different measures and components of inside debt ratios. Therefore, CEO inside debt plays a significant role in maintaining better performance of the real sector firms during crisis period.","PeriodicalId":367100,"journal":{"name":"ERN: Other Econometrics: Applied Econometric Modeling in Financial Economics - Econometrics of Corporate Finance & Governance (Topic)","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129238040","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":"Understanding Corporate Vulnerabilities in Latin America","authors":"Carlos Caceres, Fabiano Rodrigues Bastos","doi":"10.5089/9781484321546.001.A001","DOIUrl":"https://doi.org/10.5089/9781484321546.001.A001","url":null,"abstract":"This paper analyzes the potential risks and vulnerabilities of non-financial corporates in Latin America and Canada. We quantify the impact of company-specific, countryspecific, and global factors in driving corporate spreads. Overall, we found that all these factors play a role in explaining corporate risk. In particular, country specific factors such as exchange rate and sovereign CDS spreads are significantly associated with changes in corporate spreads, underscoring the importance of solid policy frameworks. We also find that global conditions, such as the VIX, are dominant drivers of corporate spreads. In recent years, the adverse effects from deteriorating domestic conditions have been broadly offset by relatively bening global financial conditions. However, a sustained reversal in these conditions would put significant pressure on corporate risk.","PeriodicalId":367100,"journal":{"name":"ERN: Other Econometrics: Applied Econometric Modeling in Financial Economics - Econometrics of Corporate Finance & Governance (Topic)","volume":"395 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124349548","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 Corporate Cash Holdings: 'A Case of Textile Sector in Pakistan'","authors":"Shaukat Ali, M. Ullah, Nazir Ullah","doi":"10.2139/ssrn.2728200","DOIUrl":"https://doi.org/10.2139/ssrn.2728200","url":null,"abstract":"The topic on cash holding has attracted strong debate in the field of financial management for the past half century. A number of researchers studied the topic corporate cash holding and its determinants in the past in developed economies while a little attention is given to the corporate cash holdings of developing economies. The objective of the study is to identify and measure the relationship of firm size, profitability, net working capital and leverage and their effect on corporate cash holdings. A sample of 30 textile firms of Pakistan listed on Karachi Stock Exchange (KSE) was selected for the study, for the reason of examining their relationship. Secondary data for the period 2006-2013 was selected for the study. Variance Inflation Test (VIF) was used to check the problem of multicollinearity. Multiple regression models were used to conduct the results. Results calculated by regression model show consistency with the literature available. Profitability (ROA) and firm size (FS) show a positive and significant relation with cash holding. However negative and significant relationship was found between net working capital (NWC) and leverage (LEV) with cash holding. \u0000The findings of the study will be useful for financial managers, financial practitioners, consultants and investors.","PeriodicalId":367100,"journal":{"name":"ERN: Other Econometrics: Applied Econometric Modeling in Financial Economics - Econometrics of Corporate Finance & Governance (Topic)","volume":"11 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-02-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124706196","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":"Debt Maturity and the Liquidity of Secondary Debt Markets","authors":"Max Bruche, Anatoli Segura","doi":"10.2139/ssrn.2218698","DOIUrl":"https://doi.org/10.2139/ssrn.2218698","url":null,"abstract":"We develop an equilibrium model of debt maturity choice of firms, in the presence of fixed issuance costs in primary debt markets, and an illiquid over-the-counter secondary debt market with search frictions. Liquidity in this market is related to the ratio of buyers to sellers, which is determined in equilibrium via the free entry of buyers. Short maturities improve the bargaining position of debt holders who sell in the secondary market and hence reduce the interest rate that firms need to offer on debt. Long maturities reduce re-issuance costs. The optimally chosen maturity trades off both considerations. Firms individually do not internalize that choosing a longer maturity increases the expected gains from trade in the secondary market, which attracts more buyers, and hence also facilitates the sale of debt issued by other firms. As a result, the laissez-faire equilibrium exhibits inefficiently short maturity choices.","PeriodicalId":367100,"journal":{"name":"ERN: Other Econometrics: Applied Econometric Modeling in Financial Economics - Econometrics of Corporate Finance & Governance (Topic)","volume":"30 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2016-01-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134297368","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":"Islamic Finance and Debt Culture: Treading the Conventional Path?","authors":"M. Farooq","doi":"10.1108/IJSE-09-2013-0197","DOIUrl":"https://doi.org/10.1108/IJSE-09-2013-0197","url":null,"abstract":"Purpose – The purpose of this paper is to examine the phenomenon of debt culture in the conventional financial systems and then to compare the existing or emerging trends in the Islamic finance industry. It provides critical insight into why economic policies that are delinked from some fundamental wisdom about sustainable lifestyle might be increasingly less effective. Design/methodology/approach – The paper identifies various areas of impact of the debt culture and provides qualitative analysis based on relevant data. Findings – The data presented in the paper shows that the Islamic finance industry is clearly biased in favor of debt-creating modes, which is expected to lead to promoting the same kind of debt culture as experienced in the conventional financial system. Research limitations/implications – Finding comprehensive and current data for Islamic financial institutions is a challenging task. The IFIs are not as transparent as their conventional counterparts in sharing relevant data and informati...","PeriodicalId":367100,"journal":{"name":"ERN: Other Econometrics: Applied Econometric Modeling in Financial Economics - Econometrics of Corporate Finance & Governance (Topic)","volume":"74 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-11-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121719138","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":"Corporate Social Responsibility and Firms’ Cost of Equity: How Does Culture Matter?","authors":"M. Matthiesen, A. Salzmann","doi":"10.2139/ssrn.2600542","DOIUrl":"https://doi.org/10.2139/ssrn.2600542","url":null,"abstract":"Prior studies have established a link between corporate social responsibility (CSR) and cost of capital by coming to the conclusion that investing in CSR can generate future benefits for a firm. However, empirical support for this assertion has been mainly limited to the US market. We use an international sample, containing 48 countries from 2002-2013, to explain cross-country variations in the effects of CSR on cost of capital in different cultural contexts. We focus on the question of whether the relation between CSR and cost of equity is moderated by the culture of a society. We find that the decreasing effect of CSR on cost of equity is stronger in countries with lower levels of individualism, power distance, masculinity, uncertainty avoidance, and long-term orientation.","PeriodicalId":367100,"journal":{"name":"ERN: Other Econometrics: Applied Econometric Modeling in Financial Economics - Econometrics of Corporate Finance & Governance (Topic)","volume":"15 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127904398","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}