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Thin capitalization rules and multinational firm capital structure

Blouin, Jennifer L.; Huizinga, Harry; Laeven, Luc; … - 2014

This paper examines the impact of thin capitalization rules that limit the tax deductibility of interest on the capital structure of the foreign affiliates of US multinationals. We construct a new data set on thin capitalization rules in 54 countries for the period 1982-2004. Using confidential...

Persistent link: https://www.econbiz.de/10010256736

Optimal firm's dividend and capital structure for mean reverting profitability

Menoncin, Francesco; Panteghini, Paolo; Regis, Luca - 2021

We model a risk-averse firm owner who wants to maximize the intertemporal expected utility of firm’s dividends. The optimal dynamic control problem is characterized by two stochastic state variables: the equity value, and profitability (ROA) of the _rm. According to the empirical evidence, we...

Persistent link: https://www.econbiz.de/10012668498

A critique of the literature on the US financial debt crisis

Stein, Jerome L. - 2010

A healthy financial system encourages the efficient allocation of capital and risk. The collapse of the house price bubble led to the financial crisis that started in 2007. There is a large empirical literature concerning the relation between asset price bubbles and financial crises. I evaluate...

Persistent link: https://www.econbiz.de/10003936616

Capital structure and regulation in US local telephony: an exploratory econometric study

Resende, Marcelo - 2009

The paper aims at empirically investigating the relationship between regulation and the capital structure of the regulated firm, A key aspect of the referred relationship pertains a leverage effect according to which debt could be increased as a response to previous physical capital investment...

Persistent link: https://www.econbiz.de/10003854388

Corporate debt and stock returns : evidence from U.S. firms during the 2020 oil crash

Arezki, Rabah; Cho, Caleb; Nguyen, Ha; Nguyen, Kate; … - 2022

This paper explores the effect of oil price fluctuations on the stock returns of U.S. oil firms using a strategy of identification through heteroskedasticity exploiting the 2020 oil crash. Results are twofold. First, we find that a decline in oil prices statistically significantly reduces stock...

Persistent link: https://www.econbiz.de/10013205096

Firm size and diversification : asymmetric multiproduct firms under Cournot competition

Grossmann, Volker - 2003

A positive relationship between firm size and product diversification is a long-standing stylized fact. However, so far …

Persistent link: https://www.econbiz.de/10011509499

Double diversification with an application to Iceland

Thorvaldur Gylfason; Wijkman, Per Magnus - 2015 - Final version, 27 May 2015

diversification as an essential aspect of national risk management aimed at promoting efficiency, growth, and welfare. The paper first … presents economic and political diversification side by side in a cross-country framework and discusses how they interact and … effects of insufficient economic and insufficient political diversification. Dominated for decades by the fishing industry …

Persistent link: https://www.econbiz.de/10010533096

Paralyzed by shock and confused by glut : the portfolio formation behavior of peer-to-business lending investors

Dorfleitner, Gregor; Hornuf, Lars; Weber, Martina - 2018

We study the investor behavior on a leading peer-to-business lending platform and find evidence of two new investment biases - a default shock bias and a deep market bias. First, we find investors to stop investing in new loans and to cease from diversifying their portfolio after experiencing a...

Persistent link: https://www.econbiz.de/10011863582

Asset diversification versus climate action

Hambel, Christoph; Kraft, Holger; Ploeg, Frederick van der - 2020

. In the longer run, however, a trade-off between diversification and climate action emerges. We derive the optimal carbon …

Persistent link: https://www.econbiz.de/10012258563

Diversifying and benchmarking Madagascar

Thorvaldur Gylfason; Nganou, Jean-Pascal Nguessa - 2024

Because excessive specialization can be risky, diversification matters for sustainable development. A case study of … Madagascar, this paper begins by briefly discussing economic and institutional diversification and presenting a simple model of … production possibilities to illuminate the possible contribution of diversification to economic and social development in …

Persistent link: https://www.econbiz.de/10015048370