Search results for "porat"

Corporate Attributes and Associations

2013

Configurations of High Corporate Environmental Responsibility with Regard to Business Legitimacy:A Cross-National Approach

2020

Convex costs and the hedging paradox

2010

Accepted version of an article from the journal:Journal of Corporate Finance. Published version available on Science Direct: http://dx.doi.org/10.1016/j.jcorpfin.2009.10.002 Financial theory suggests that hedging can increase shareholder value in the presence of capital market imperfections, including direct and indirect costs of financial distress, costly external financing, and convex tax exposure. The influence of these costs, which are high when profits are low and low or negligible when profits are large, on the extent of firm hedging has not been consistently addressed in the finance literature. In Brown and Toft's (2002) model, more convex costs imply that a firm will decrease the ex…

Opacity of young businesses: Evidence from rating disagreements

2008

Abstract A conventional wisdom in the contemporary corporate finance literature argues that small and medium-sized enterprises (SMEs) are informationally opaque. We use data from two credit information companies and in particular their disagreements over the creditworthiness of SMEs to study the empirical relevance of this often invoked assumption. Our panel data analysis shows that once unobserved firm-effects are controlled for, the disagreements (i.e., rating splits) are inversely related to the age of firms. We are not able to document such a robust relationship between the disagreements and the size of firms. This finding holds a lesson for empirical corporate finance researchers who n…

Challenges and trends of debt capital raising by SME: experience of the Baltic States

2012

The paper analyses topical issue of debt capital raising by small and medium-sized enterprises in the Baltic States under changing economic conditions. Raise of debt capital is crucial for SME, as financing and its availability is a critical precondition for the survival and development of enterprises. The paper gives an assessment of recent developments in debt capital raising in the Baltic States, identifies the most important challenges and problems, as well as the mistakes made. Based on the analysis made, authors provide solutions for debt capital raising challenges and possible changes in corporate finance of enterprises.

Investor Protection and Business Creation

2003

We study the effects of investor protection on the availability of external finance, entrepreneurship, and creation of new firms in an equilibrium search model of private capital markets. In addition to search frictions, we examine contract frictions, specifically interim and ex post moral hazard problems stemming from entrepreneurs' possibilities to expropriate financiers. In our model, the government chooses the level of investor protection that determines the transferability of match surplus between entrepreneurs and financiers. The results indicate that anything that increases (decreases) entrepreneurship also increases (decreases) the creation of start-ups. The effect of investor prote…

Variation on the theme 'In Search of New Foundations for Corporate Finance and Corporate Governance'

2003

Our purpose is to explore an alternative way to give new foundations to the theory of corporate finance and governance. The definition we give of corporate finance considers capital-budgeting as central. The shortcomings of the contract theory of the firm result in proposing new foundations to corporate finance based on the knowledge-based theories of the firm. Lastly, we explore the consequences of these new foundations. It leads to give new explanations of the role of external equity financing, financial debt and especially of internal financing, and to re-examine the corporate governance and financial evaluation questions.

Law of Finance: Evidence from Finland

2003

Although it is widely acknowledged that the benefits of corporate governance reform could be substantial, systematic evidence on such reforms is scant. We both document and evaluate a contemporary corporate governance reform by constructing 18 measures of shareholder and creditor protection for Finland for the period 1980-2000. The measures reveal that shareholder protection has been strengthened whereas creditor protection has been weakened. We also demonstrate how the reform is consistent with a reorganisation of the Finnish financial market in which a bank-centred financial system shifted from relationship-based debt finance towards increasing dominance by the stock market. We find evide…

How "attractive" is good governance for FDI?

2008

Evaluation in the Transnational ‘Management by Projects' Policies

2004

There is a supranational tendency in educational governance towards a 'management by projects' policy, which substitutes democratic procedures and norm-based control in FOR? materialisation of educational justice. The organisational level becomes crucial for the management of education and the pressure to conceive education as a managerial activity increases. At the same time, educational expertise in public administration becomes substituted by subcontracted, policy-led research. In the context of transnational governance the civil service is turning into a busnocracy, which is responsible for the quality of education to the global markets instead of to people. The article discusses this t…