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Persistence and Determinants of Firm Profit in Emerging Markets

Stephan, Andreas; Tsapin, Andriy - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2008

The paper studies the persistence of profit and its determinants in emerging markets. We apply Markov chain analysis … empirical results show a moderate level of profit persistence, as well as a relatively low speed of adjustment to the steady …-state profit level, thus providing no support for the hypothesis that there is a lower persistence of profits in emerging markets …

Persistent link: https://www.econbiz.de/10004963898

The Impact of Introducing an Interest Barrier: Evidence from the German Corporation Tax Reform 2008

Buslei, Hermann; Simmler, Martin - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2012

' capital structure, investment and profitability. The identification of the causal effects is based on the escape clauses in …

Persistent link: https://www.econbiz.de/10010552491

The Effects of Short-Term Liabilities on Profitability: The Case of Germany

Baum, Christopher F.; Schäfer, Dorothea; Talavera, … - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2006

-term liabilities. We develop a structural model of a firm's value maximization problem that predicts that profitability of the firm …

Persistent link: https://www.econbiz.de/10005068970

How Has the Global Financial Crisis Affected Syndicated Loan Terms in Emerging Markets?: Evidence from China

Caporale, Guglielmo Maria; Lodh, Suman; Nandy, Monomita - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2015

This paper examines the impact of the recent global financial crisis on the cost of debt capital (syndicated loans) in a leading emerging market, namely China, using difference-in-differences and GARCH approaches. Before the crisis China adopted banking reforms allowing entry of foreign banks...

Persistent link: https://www.econbiz.de/10011276389

Asymmetric Information and Roll-over Risk

König, Philipp; Pothier, David - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2014

How do banks choose their debt maturity structure when credit markets are subject to information frictions? This paper proposes a model of equilibrium maturity choice with asymmetric information and endogenous roll-over risk. We show that in the presence of public signals about firms'...

Persistent link: https://www.econbiz.de/10011266595

Differential Taxation and Firms' Financial Leverage: Evidence from the Introduction of a Flat Tax on Interest Income

Fossen, Frank M.; Simmler, Martin - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2012

Tax competition for the mobile factor capital has led to a trend in many countries to levy lower taxes on interest income, often introducing differential taxation between interest and business income. In this study, we analyze the effect of such differential taxation on the debt ratio of firms....

Persistent link: https://www.econbiz.de/10009651334

Funding Self-Employment: The Role of Consumer Credit

Kneiding, Christoph; Kritikos, Alexander S. - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2011

This paper investigates whether self-employed households use consumer loans - in particular instalment loans and overdrafts - to finance business activities. Controlling for financial and non-financial household variables we show that self-employed households particularly use personal overdrafts...

Persistent link: https://www.econbiz.de/10009401160

Venture Capital versus Bank Financing in Innovative German Firms

Schäfer, Dorothea; Talavera, Oleksandr; Zimmermann, Volker - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2007

The paper investigates young firms' choice of capital source. Our theoretical model hypothesizes a positive (negative) relation between riskiness of the project (price of venture capital) and receiving informed equity. We test our predictions by employing a unique data set collected by KfW...

Persistent link: https://www.econbiz.de/10004963653

Uncertainty Determinants of Corporate Liquidity

Baum, Christopher F.; Caglayan, Mustafa; Stephan, Andreas; … - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2006

This paper investigates the link between the optimal level of non-financial firms' liquid assets and uncertainty. We develop a partial equilibrium model of precautionary demand for liquid assets showing that firms alter their liquidity ratio in response to changes in either macroeconomic or...

Persistent link: https://www.econbiz.de/10004963667

Macroeconomic Uncertainty and Firm Leverage

Baum, Christopher F.; Stephan, Andreas; Talavera, Oleksandr - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2004

This paper investigates the link between the optimal level of nonfinancial firms' leverage and macroeconomic uncertainty. We develop a structural model of a firm's value maximization problem that predicts that as macroeconomic un-certainty increases the firm will decrease its optimal level of...

Persistent link: https://www.econbiz.de/10004963696