Essays on the structural estimation and analysis of corporate and industrial markets
The three chapters which comprise my thesis are a collection of essays on the analysis of the corporate governance and airline markets and of the federal appellate structure. In Chapter 1, I use a discrete choice framework to analyze state design and firm choice of the implications of incorporation: corporate governance laws, corporate taxes and court structure. Firms - differentiated on ownership, management, industry concentration, financial profile and unobservable dimensions - freely choose their preferred state of incorporation or reincorporation. The revealed preference embedded in this observable choice is used as window into the heterogeneous preferences within and across firms, yielding several findings: For example, I find, surprisingly, that firms are very responsive to incorporation and franchise taxes. In addition, on average, firms like anti takeover statutes, but, consistent with an agency story, firms with an institutional shareholder block and venture capital backed firms dislike them. On average, firms dislike mandatory governance statutes restricting managerial power and facilitating the representation of minority shareholders, but these laws are less restrictive for the choice of firms in concentrated industries. All firms dislike well functioning courts, consistent with a litigation deterrence motive. The recovered firm preferences are then taken to the simulation of recently proposed federal reforms aimed at centralizing the domicile implications and restricting firm choice.
Year of publication: |
2009
|
---|---|
Authors: | Cohen, Moshe Aharon |
Other Persons: | Glenn Ellison, Whitney Newey and Victor Chernozhukov. (contributor) |
Institutions: | Massachusetts Institute of Technology. Dept. of Economics. (contributor) |
Publisher: |
Massachusetts Institute of Technology |
Saved in:
freely available
Saved in favorites
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