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Who is Afraid of Political Risk? Multinational Firms and their Choice of Capital Structure
Kesternich, Iris; Schnitzer, Monika - C.E.P.R. Discussion Papers - 2007
political risk. We focus on two choice variables, the leverage and the ownership structure of the foreign affiliate, and we … analysis we find that, as political risk increases, the ownership share always decreases, whereas leverage can both increase or …
Persistent link: https://www.econbiz.de/10005067659
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Capital Structure and Regulation: Do Ownership and Regulatory Independence Matter?
Bortolotti, Bernardo; Cambini, Carlo; Rondi, Laura; … - C.E.P.R. Discussion Papers - 2008
higher leverage if they are privately-controlled and if they are regulated by an independent regulatory agency. Moreover, we … find that the leverage of these firms has a positive and significant effect on their regulated prices, but not vice versa …, and it also has a positive and significant effect on their market values. Our results are consistent with the theory that …
Persistent link: https://www.econbiz.de/10005497873
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Optimal Bank Capital
Marcheggiano, Gilberto; Miles, David K; Yang, Jing - C.E.P.R. Discussion Papers - 2011
This paper reports estimates of the long-run costs and benefits of banks funding more of their assets with loss-absorbing capital, or equity. Measuring those costs requires careful consideration of a wide range of issues about how shifts in funding affect required rates of return and on how...
Persistent link: https://www.econbiz.de/10008915802
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The Race for Telecoms Infrastructure Investment with Bypass: Can Access Regulation Achieve the First-best?
Vareda, Bastos; Miguel, João; Hoernig, Steffen - C.E.P.R. Discussion Papers - 2007
preemption a higher access charge can delay first investment. Constant access tariffs cannot achieve the first best. Optimal time …
Persistent link: https://www.econbiz.de/10005497926
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Strategic Merger Waves: A Theory of Musical Chairs
Toxvaerd, Flavio - C.E.P.R. Discussion Papers - 2007
This paper proposes an explanation of merger waves based on the interaction between competitive pressure and irreversibility of mergers in an uncertain environment. A set of acquirers compete over time for scarce targets. At each point in time, an acquirer can either postpone a takeover attempt,...
Persistent link: https://www.econbiz.de/10005792417
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Multi-Battle Contests
Konrad, Kai A.; Kovenock, Dan - C.E.P.R. Discussion Papers - 2006
We study equilibrium in a multistage race in which players compete in a sequence of simultaneous move component contests. Players may win a prize for winning each component contest, as well as a prize for winning the overall race. Each component contest is an all-pay auction with complete...
Persistent link: https://www.econbiz.de/10005791548
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Credible Vertical Preemption
Siebert, Ralph - C.E.P.R. Discussion Papers - 2003
This study shows that preemptive investment in product proliferation is subject to a commitment problem that is not constrained to models of horizontal product differentiation, but applies to vertical product differentiation settings as well. We investigate the incentives of firms producing...
Persistent link: https://www.econbiz.de/10005791829
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Equilibrium and Efficiency in the Tug-of-War
Konrad, Kai A.; Kovenock, Dan - C.E.P.R. Discussion Papers - 2005
We characterize the unique Markov perfect equilibrium of a tug-of-war without exogenous noise, in which players have the opportunity to engage in a sequence of battles in an attempt to win the war. Each battle is an all-pay auction in which the player expending the greater resources wins. In...
Persistent link: https://www.econbiz.de/10005661937
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Access to Public Capital Markets and Employment Growth
Borisov, Alexander; Ellul, Andrew; Sevilir, Merih - C.E.P.R. Discussion Papers - 2015
This paper investigates the importance of accessing public capital markets through an initial public offering (IPO), and the consequent relaxation of firms’ financial constraints, for firm-level long term employment decisions. We find that firms significantly increase post-IPO investment in...
Persistent link: https://www.econbiz.de/10011249379
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U.S. Monetary Shocks and Global Stock Prices
Laeven, Luc; Tong, Hui - C.E.P.R. Discussion Papers - 2010
This paper studies how U.S. monetary policy affects global stock prices. We find that global stock prices respond strongly to changes in U.S. interest rate policy, with stock prices increasing (decreasing) following unexpected monetary loosening (tightening). This impact is more pronounced for...
Persistent link: https://www.econbiz.de/10008692313