Narrow search
Showing 1 - 10 of 101
Cover Image
The Economic Value of Flexibility when there is Disagreement
Boot, Arnoud W.A.; Thakor, Anjan V. - Tinbergen Instituut - 2003
We develop an economic theory of “flexibility”, which we interpret as the discretion orability to make a decision that others disagree with. We show that flexibility is essentiallyan option for the decisionmaker, and can be valued as such. The value of the flexibilityoption is decreasing in...
Persistent link: https://www.econbiz.de/10011249540
Cover Image
Go Public or Stay Private: A Theory of Entrepreneurial Choice
Boot, Arnoud W.A.; Gopalan, Radhakrishnan; Thakor, Anjan V. - Tinbergen Instituut - 2003
In this paper we analyze an entrepreneur /manager's choice between private and public ownership in a setting in which management needs some "elbow room" or autonomy to optimally manage the firm. In public capital markets, the corporate governance regime in place exposes the firm to exogenous...
Persistent link: https://www.econbiz.de/10011256028
Cover Image
Disagreement and Flexibility: A Theory of Optimal Security Issuance and Capital Structure
Boot, Arnoud W.A.; Thakor, Anjan V. - Tinbergen Instituut - 2003
financed. Debt offers little flexibility relativeto equity. However, the flexibility offered by equity depends on the extent to …’s optimal security-issuance choice trades off the flexibilitybenefit of equity against the now-familiar debt tax shield, and the …’s stock price, implying that firms issue equity when stockprices are high and debt when stock prices are low. The theory …
Persistent link: https://www.econbiz.de/10011242147
Cover Image
Volatility Smirk as an Externality of Agency Conflict and Growing Debt
Jaskowski, Marcin; McAleer, Michael - Tinbergen Instituut - 2013
volatility smirk, both for time series and cross sections of companies. These results may help to disentangle the leverage effect …
Persistent link: https://www.econbiz.de/10011268659
Cover Image
On the Invertibility of EGARCH
Martinet, Guillaume Gaetan; McAleer, Michael - Tinbergen Instituut - 2014
effects of equal magnitude, and leverage, which refers to the negative correlation between the returns shocks and subsequent …
Persistent link: https://www.econbiz.de/10011272590
Cover Image
On the Invertibility of EGARCH(p,q)
Martinet, Guillaume Gaetan; McAleer, Michael - Tinbergen Instituut - 2015
effects of equal magnitude, and leverage, which refers to the negative correlation between the returns shocks and subsequent …
Persistent link: https://www.econbiz.de/10011272596
Cover Image
A One Line Derivation of EGARCH
McAleer, Michael; Hafner, Christian M. - Tinbergen Instituut - 2014
effects of equal magnitude, EGARCH can also accommodate leverage, which is the negative correlation between returns shocks and …
Persistent link: https://www.econbiz.de/10011272605
Cover Image
Asymmetry and Leverage in Conditional Volatility Models
McAleer, Michael - Tinbergen Instituut - 2014
on conditional volatility of positive and negative effects of equal magnitude, and leverage, which is the negative … between asymmetry and leverage, as well as which asymmetric models are purported to be able to capture leverage, the purpose … appropriate regularity conditions; and (2) to show that leverage is not possible in these univariate conditional volatility models. …
Persistent link: https://www.econbiz.de/10011257524
Cover Image
Investor Sentiment and Employment
Montone, Maurizio; Zwinkels, Remco C.J. - Tinbergen Instituut - 2015
We find that investor sentiment should affect a firm's employment policy in a world with moral hazard and noise traders. Consistent with the model's predictions, we show that higher sentiment among US investors leads to: (1) higher employment growth worldwide; (2) lower labor productivity, as the...
Persistent link: https://www.econbiz.de/10011255878
Cover Image
Disciplining and Screening Top Executives
Martinez, Silvia Dominguez; Swank, Otto H.; Visser, Bauke - Tinbergen Instituut - 2006
Boards of directors face the twin task of disciplining and screening executives. To perform these tasks directors do not have detailed information about executives' behaviour, and only infrequently have information about the success or failure of initiated strategies, reorganizations, mergers...
Persistent link: https://www.econbiz.de/10011256153