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Currency Exposure and Hedging Practices among Indian Non-financial Firms

Praveen Bhagawan M.; Lukose, P.J. Jijo - In: Foreign Trade Review 49 (2014) 3, pp. 247-262

This article investigates the exchange-rate exposure of S&P CNX 500 non-financial constituents during 2006â€“2011. By using a standard two-factor market model, we measure the sensitivity of stock returns to changes in the exchange rate and find that 11 per cent of sample firms are...

Persistent link: https://www.econbiz.de/10011138675

When Is There a Strong Transfer Risk from the Sovereigns to the Corporates? Property Rights Gaps and CDS Spreads

Wei, Shang-Jin; Bai, Jennie - National Bureau of Economic Research (NBER) - 2012

of a transfer from the sovereign risk to corporate default risks may be mitigated by legal institutions that provide … strong property rights protection. Using a novel credit default swaps (CDS) dataset covering both government and corporate … influence on corporate credit risks. All else equal, a 100 basis points increase in the sovereign CDS spread leads to an …

Persistent link: https://www.econbiz.de/10010821968

What drives corporate minority acquisitions around the world? The case for financial constraints

Liao, Rose C. - In: Journal of Corporate Finance 26 (2014) C, pp. 78-95

In this paper, I examine minority block acquisitions from 1990 to 2009, as well as possible theories for the presence of equity stake purchases. I find that target firms are financially constrained. Acquisitions significantly increase their stock prices at announcement, along with their...

Persistent link: https://www.econbiz.de/10010776956

Crossing the lines: The conditional relation between exchange rate exposure and stock returns in emerging and developed markets

Bartram, Söhnke M.; Bodnar, Gordon M. - In: Journal of International Money and Finance 31 (2012) 4, pp. 766-792

This paper examines the importance of exchange rate exposure in the return generating process for a large sample of non-financial firms from 37 countries. We argue that the effect of exchange rate exposure on stock returns is conditional and show evidence of a significant return impact to...

Persistent link: https://www.econbiz.de/10011048438

The internal workings of internal capital markets: Cross-country evidence

Gugler, Klaus; Peev, Evgeni; Segalla, Esther - In: Journal of Corporate Finance 20 (2013) C, pp. 59-73

We derive empirical predictions from the standard investment-cash flow framework on the functioning of internal capital markets (ICM), but circumvent its criticism by focusing on parent cash flow and investment opportunities. We test these predictions using a unique dataset of parent firms and...

Persistent link: https://www.econbiz.de/10011052877

R-squared and the Economy

Morck, Randall; Yeung, Bernard; Yu, Wayne - National Bureau of Economic Research (NBER) - 2013

Many seemingly discordant results are reconciled if firm-specific return volatility is characterized as the intensity with which firm-specific events occur. A functionally efficient stock market allocates capital to its highest value uses, which often amounts to financing Schumpeterian creative...

Persistent link: https://www.econbiz.de/10010951344

Transmission of pricing information between level III ADRs and their underlying domestic stocks: Empirical evidence from India

Bhattacharjee, Kaushik; Bang, Nupur Pavan; Mamidanna, Sravya - In: Journal of Multinational Financial Management 24 (2014) C, pp. 43-59

This paper studies the price interdependence and transmission pattern between a group of level III American Depository Receipts (ADRs) and their respective underlying stock prices in India. We investigate the transmission dynamics of pricing information between the ADRs and their underlying...

Persistent link: https://www.econbiz.de/10010743806

Financial development and the allocation of external finance

Bena, Jan; Ondko, Peter - In: Journal of Empirical Finance 19 (2012) 1, pp. 1-25

We examine whether financial markets development facilitates the efficient allocation of resources. Using European micro-level data for 1996–2005, we show that firms in industries with growth opportunities use more external finance in financially more developed countries. This result is...

Persistent link: https://www.econbiz.de/10010942984

The Composition Matters: Capital Inflows and Liquidity Crunch during a Global Economic Crisis

Tong, Hui; Wei, Shang-Jin - National Bureau of Economic Research (NBER) - 2009

International capital flows, while potentially beneficial, are said to increase a country's vulnerability to crisis - especially if they are skewed to non-FDI types. This paper studies whether the volume and composition of capital flows affect the degree of credit crunch faced by a country's...

Persistent link: https://www.econbiz.de/10005033469

An Information-Based Trade Off between Foreign Direct Investment and Foreign Portfolio Investment

Razin, Assaf; Goldstein, Itay - National Bureau of Economic Research (NBER) - 2005

The paper develops a model of foreign direct investments (FDI) and foreign portfolio investments (FPI).The model describes an information-based trade off between direct investments and portfolio investments. Direct investors are more informed about the fundamentals of their projects. This...

Persistent link: https://www.econbiz.de/10005014922