Showing 1 - 10 of 25
that financial development has important consequences for efficiency and specialization (or diversification) of investments …
Persistent link: https://www.econbiz.de/10005662195
Why is GDP growth so much more volatile in poor countries than in rich ones? We identify four possible reasons: (i) poor countries specialize in more volatile sectors; (ii) poor countries specialize in fewer sectors; (iii) poor countries experience more frequent and more severe aggregate shocks...
Persistent link: https://www.econbiz.de/10005662216
This paper considers the incentives of oligopolistic firms to diversify into technologically related markets when there are diseconomies of scope. There is a rent-extraction incentive for firms to adopt flexible technologies, which enable them to enter technologically related markets, thereby...
Persistent link: https://www.econbiz.de/10005662260
whether to take the firm public. In this decision, the entrepreneur trades off diversification benefits of going public …
Persistent link: https://www.econbiz.de/10005666477
In a simple model of capital budgeting in a diversified firm where headquarters have limited power, we show that funds are allocated towards the most inefficient divisions. The distortion is greater, when the investment oppotunities of the firm’s divisions are more diverse. We test these...
Persistent link: https://www.econbiz.de/10005666944
In this Paper we show that the main empirical findings about firm diversification and performance are actually … consistent with the optimal behavior of a firm that maximizes shareholder value. In our model, diversification allows a firm to … allows us to examine several aspects of the relationship between firm diversification and performance in a very general …
Persistent link: https://www.econbiz.de/10005667077
This paper presents new stylized facts on the distribution of the home bias at the fund level. We find (i) a large heterogeneity in the degree of home bias across mutual funds; (ii) a positive correlation between the size of funds and home bias; and (iii) a positive correlation between the size...
Persistent link: https://www.econbiz.de/10005791444
contracts are relatively difficult to enforce. International diversification can thus yield substantial gains, but they may …
Persistent link: https://www.econbiz.de/10005791988
Lack of access to finance is often cited as a key reason for why poor people remain poor. This Paper uses data on the Indian rural branch expansion programme to provide empirical evidence on this issue. Between 1977 and 1990, the Indian central bank mandated that a commercial bank could open a...
Persistent link: https://www.econbiz.de/10005792249
-depth description of the lifetime pattern of asset holdings and their composition, the degree of asset diversification, and the …
Persistent link: https://www.econbiz.de/10005792420