Search results for "Finance"

A continuous time tug-of-war game for parabolic $p(x,t)$-Laplace type equations

2019

We formulate a stochastic differential game in continuous time that represents the unique viscosity solution to a terminal value problem for a parabolic partial differential equation involving the normalized $p(x,t)$-Laplace operator. Our game is formulated in a way that covers the full range $1<p(x,t)<\infty$. Furthermore, we prove the uniqueness of viscosity solutions to our equation in the whole space under suitable assumptions.

The Importance of Alliances in Firm Capital Structure Decisions: Evidence from Biotechnology Firms

2015

Building on finance research, we argue that the ex post hazards arising from alliance formation depend upon the firm's financial condition. Financial distress jeopardizes the continuity of an alliance and the value of the investments involved. Thus, firms should reduce leverage to signal continued commitment and to induce investments from alliance partners. Accordingly, we find that a firm's current alliance propensity predicts its subsequent capital structure decisions and that this relationship is most pronounced in the presence of other exchange hazards. Our paper contributes to alliance research and to the growing literature discussing the strategic consequences of capital structure. Co…

Loan loss provisions. A study by economic cycles

2017

Este trabajo estudia los determinantes de las dotaciones para provisiones del deterioro de los créditos en las entidades de crédito españolas desde 1983 al segundo trimestre de 2013. Resultan significativos, además de la morosidad, las provisiones genéricas, el margen de interés, la estacionalidad centrada en el cuarto trimestre y los periodos de crisis. Al ser un periodo extenso se estudian cómo actúan los determinantes en cada uno de los 4 ciclos económicos que se han dado. Se encuentran similitudes importantes en los periodos de crisis y en los periodos de crecimiento, junto a las singularidades de los propios ciclos. Las aportaciones de esta investigación son: i) el diferente comportami…

An institutional perspective on corruption in transition economies

2017

Submitted version (preprint). This is the pre-peer reviewed version of the following article: Alon, A. & Hageman, A. (2017). An institutional perspective on corruption in transition economies. Corporate governance: An International Review, 25(3), 155-166, which has been published in final form at https://doi.org/10.1111/corg.12199. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. Manuscript Type: Empirical Research Question/Issue: Companies operating in transition economies encounter a broad range of potential challenges. In the area of tax, firms make direct tax payments but may also encounter unofficial t…

2019

Research Summary We explore the qualitative differences in entries and exits over time. Using qualitative and quantitative data on 96 firms over 200 years, we study industry evolution from the perspective of individual decision‐making situations. Our historical and statistical analyses reveal the vital role of technology investments in determining firm outcomes, and the technological, institutional and governance dynamics that lead firms to invest or to abstain. Our main theoretical and methodological contribution concerns the importance of the multiplicity of firm‐level rationalities and decisions as fundamentals in theorizing on industry evolution. Managerial Summary What determines firm …

L'efficacité des privatisations françaises : une vision dynamique à travers la théorie de la gouvernance

2004

International audience; A reading of the process of privatization through the corporate governance theory leads to propose a model taking into account, on the one hand, the time dimension of the process of privatization, on the other hand, the contextual, organizational, governance and strategic variables which influence this process. After replicating some traditional tests, we test this model on a sample of French privatized firms and on a seven years horizon. The positive effect traditionally attributed to privatizations is not confirmed. The importance of the effect is subordinated to some of the suggested variables.; Une lecture du processus de privatisation à travers la théorie de la …

Revolving doors: are they valued in the Spanish stock market?

2016

Purpose The purpose of this paper is to examine the effect of political connections in the value of companies listed on the Spanish stock market. Design/methodology/approach The authors study two issues on this topic: the impact on the company value of the appointment as director of an ex-politician through an event study; and the long run stock market performance of companies with political connections. The authors employ a sample of listed firms in the Spanish stock market for which the authors collected data about their political connections. The authors perform the study during a wide period (1996-2011), comprising four legislatures. Findings The results show that from the market persp…

A Configurational Approach to Analyze Family Governance and Family Firm Outcome Preferences

2020

This chapter follows the new research current that looks for heterogeneity between family businesses and its consequences. Through a cluster analysis, the chapter presents a taxonomy of four groups with different family government profiles, depending on the scope—number of issues considered—and the level of formalization. Alike, the research describes the different relative importance that each group attaches a to financial and non-financial performance measures, as well as to the dimensions of business and family success. The chapter analyzes a sample of 147 SME family businesses that belong to the tourism industry. All of them are closely held family businesses that range between the firs…

Sustainable Growth Rate: An Analysis Regarding the Most Traded Companies on the Bucharest Stock Exchange

2018

The concept of sustainable growth rate was originally developed by Robert C. Higgins. In the case of companies with given stable financial policies, it is considered to be the link between growth-return rate combinations that gives a balanced growth line. This indicates the possibilities for a company to grow without generating deficits or cash surpluses. Increased sales require more assets, which can be financed by new debt, external equity, and internal equity through retained earnings. The sustainable growth rate is the maximum rate at which company sales can increase without decreasing its financial resources. The aim of this paper is to determine if the last year most traded companies …

Institutions and Innovation as Driving Forces Towards a Smart City and Sustainable Territorial Development

2018

The aim of the chapter is the analysis of innovation and institution as key-elements for reaching a higher social welfare and for improving environmental quality. To determine a social optimum or a Pareto improvement, we consider the interaction between institution and firm in the short and in the medium/long run. Using a static comparative analysis, the interaction of these two agents, institution and market, is examined. Within the market an entrant and an incumbent firm are present, and the entrant firm radically innovates. Even if in the short run results show that the market alone is able to realize a Pareto improvement, an institution action through an innovation adoption is a prefera…