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On the fast track: information acquisition costs and information production

Chen, Deqiu; Ma, Yujing; Martin, Xiumin; Michaely, Roni - 2020

Using the introduction of high-speed rail (HSR) as an exogenous shock to costs of information acquisition, we show that reductions in information-acquisition costs lead to (i) a significant increase in information production, evidenced by a higher frequency of analysts visiting portfolio firms,...

Persistent link: https://www.econbiz.de/10012271169

On the fast track: information acquisition costs and information production

Chen, Deqiu; Ma, Yujing; Martin, Xiumin; Michaely, Roni - 2020

Using the introduction of high-speed rail as exogenous shocks to costs of information acquisition, we show that reductions in information-acquisition costs lead to a significant increase in information production and improvement in output quality, evidenced by higher frequency of analysts...

Persistent link: https://www.econbiz.de/10012181499

Consistent valuation of project finance and LBO's using the flows-to-equity method

Cooper, Ian; Nyborg, Kjell G. - 2010

A common method of valuing the equity in highly leveraged transactions is the flows-to-equity method. When applying this method various formulas can be used to calculate the time-varying cost of equity. In this paper we show that some commonly used formulas are inconsistent with the assumptions...

Persistent link: https://www.econbiz.de/10008797682

Passive shareholders as a takeover defense

Bodnaruk, Andrij; Gao, Pengjie; Östberg, Per; Yun, Hayong - 2011

more passive shareholders (lower ownership per non-institutional shareholder) are less likely to be takeover targets, less … likely to be acquired and command higher premiums. Using the adoption of anti-takeover law in Delaware as an exogenous shock … to anti-takeover protection, we show that the passiveness of shareholder base decreases as the takeover threat subsides …

Persistent link: https://www.econbiz.de/10009009605

Quantification of the evolution of firm size distributions due to mergers and acquisitions

Lera, Sandro Claudio; Sornette, Didier - 2016

The distribution of firm sizes is known to be heavy tailed. In order to account for this stylized fact, previous studies have focused mainly on growth through investments in a company's own operations (internal growth). Thereby, the impact of mergers and acquisitions (M&A) on the firm size...

Persistent link: https://www.econbiz.de/10011518770

Firm financing and the relative demand for labor and capital

ElFayoumi, Khalid - 2020

During both the 2008 and the COVID crises, aggregate employment in Europe and the US fell despite continuing growth in the aggregate capital stock. Using more than one million firm-year observations of small and medium European firms between 2003 and 2018, this paper introduces new stylized...

Persistent link: https://www.econbiz.de/10012308878

Corporate investment and financing under asymmetric information

Morellec, Erwan; Schürhoff, Norman - 2010 - This version March 2010

We develop a dynamic model of corporate investment and financing decisions in which corporate insiders have superior information about the firm's growth prospects. We show that firms with positive private information can credibly signal their type to outside investors using the timing of...

Persistent link: https://www.econbiz.de/10003970296

A deep learning approach to estimate forward default intensities

Divernois, Marc-Aurèle - 2020 - Preliminary draft

This paper proposes a machine learning approach to estimate physical forward default intensities. Default probabilities are computed using artificial neural networks to estimate the intensities of the inhomogeneous Poisson processes governing default process. The major contribution to previous...

Persistent link: https://www.econbiz.de/10012419329

Do Institutional Directors Matter?

Geng, Heng; Hau, Harald; Michaely, Roni; Nguyen, Binh T. - 2022

The large increase in common institutional ownership raises significant antitrust concerns, even if the precise channel of any potential influence on market outcomes is unclear. Using a novel dataset on shareholders’ board representation, we examine the role of common institutional directors...

Persistent link: https://www.econbiz.de/10014238386

Mergers in imperfectly segmented markets

Baake, Pio; Wey, Christian - 2009

We present a model with firms selling (homogeneous) products in two imperfectly segmented markets (a "high-demand" and a "low-demand" market). Buyers are mobile but restricted by transportation costs, so that imperfect arbitrage occurs when prices differ in both markets. We show that equilibria...

Persistent link: https://www.econbiz.de/10003874770