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Convertible Securities and Venture Capital Finance

Schmidt, Klaus - CESifo - 1999

This paper offers a new explanation for the prevalent use of convertible securities in venture capital finance. Convertible securities can be used to endogenously allocate cash flow rights as a function of the realized quality of the project. This property can be used to mitigate the double...

Persistent link: https://www.econbiz.de/10005765755

The Commitment Role of Equity Financing

Fahn, Matthias; Merlo, Valeria; Wamser, Georg - CESifo - 2014

Existing theories of a firm’s optimal capital structure seem to fail in explaining why many healthy and profitable firms rely heavily on equity financing, even though benefits associated with debt (like tax shields) appear to be high and the bankruptcy risk low. This holds in particular for...

Persistent link: https://www.econbiz.de/10010877665

Taxing Multinationals in the Presence of Internal Capital Markets

Köthenbürger, Marko; Stimmelmayr, Michael - CESifo - 2013

There is ample evidence that internal capital markets incur efficiency costs for multinational enterprises (MNEs). This paper analyzes whether tax avoidance behavior interacts with the costs of running an internal capital market and how policies of competing governments respond to it. We show...

Persistent link: https://www.econbiz.de/10010684156

Size Matters - "Over"investments in a Relational Contracting Setting

Englmaier, Florian; Fahn, Matthias - CESifo - 2015

The corporate finance literature documents that managers tend to overinvest into physical assets. A number of theoretical contributions have aimed to explain this stylized fact, most of them focussing on a fundamental agency problem between shareholders and managers. The present paper shows that...

Persistent link: https://www.econbiz.de/10011120475

Economic-Social Interaction in China

Lindbeck, Assar - CESifo - 2008

This paper analyzes economic-social interaction in China in connection with the country’s change of economic system. I define an economic system in terms of a multidimensional vector of broad institutional characteristics, and I emphasize that important features of the social development are...

Persistent link: https://www.econbiz.de/10005406215

Beyond the Salassa-Samuelson Effect in some New Member States of the European Union

García-Solanes, José; Sancho-Portero, Francisco I.; … - CESifo - 2007

This paper analyses the Balassa and Samuelson hypothesis in two groups of European countries: six New Member States (NMS) and six advanced EU-15 economies. It is found that the second stage of the hypothesis, which relates relative sector prices with the real exchange rate, does not hold...

Persistent link: https://www.econbiz.de/10005416475

Political Persistence, Connections and Economic Growth

Bellettini, Giorgio; Ceroni, Carlotta Berti; Prarolo, … - CESifo - 2009

defend their monopoly position and prevent innovation and entry of high-quality competitors. This requires that the incumbent … quality upgrade related to innovation. Consistently with our empirical findings, the model delivers a negative association …

Persistent link: https://www.econbiz.de/10005765682

Effects of Innovation on Employment: A Dynamic Panel Analysis

Lachenmaier, Stefan; Rottmann, Horst - CESifo - 2007

This paper estimates the effect of innovation on employment at the firm level. Our uniquely long innovation panel data … set of German manufacturing firms covers more than 20 years and allows us to use various innovation measures. We can … distinguish between product and process innovations as well as between innovation inputs and innovation outputs. Using dynamic …

Persistent link: https://www.econbiz.de/10005765742

Innovation of Network Goods: A Non-Innovating Firm Will Gain

Glazer, Amihai; Kanniainen, Vesa; Mustonen, Mikko - CESifo - 2002

of a consumer increases with aggregate consumption. The post-innovation network consists of two compatible sub … underinvest in innovation. …

Persistent link: https://www.econbiz.de/10005765788

Public Policy and Venture Capital Backed Innovation

Keuschnigg, Christian - CESifo - 2003

gains taxation, innovation subsidies, public R&D spending and other policy initiatives. …

Persistent link: https://www.econbiz.de/10005766108