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This paper uses a unique sample of 175 Spanish equity offerings from 1985 to 2002 to test who benefits from IPO underpricing and why. Institutions receive nearly 75% of the profits in underpriced issues, while they have to bear only 56% of the losses in overpriced offerings. Superior information...
Persistent link: https://www.econbiz.de/10011604474
We study how public policy can contribute to increase the share of early stage and high-tech venture capital investments, thus helping the development of active venture capital markets. A simple extension of the seminal model by Holmstrom and Tirole (1997) provides a theoretical base for our...
Persistent link: https://www.econbiz.de/10011604476
that private equity investment benefits new business incorporation, especially in industries with naturally higher entry … rates and R&D intensity. A two standard deviation increase in private equity investment explains as much as 5.5% of the …
Persistent link: https://www.econbiz.de/10011605124
capital investment. We argue that this is due to the emergence of new corporate giants rather than the growth of existing ones. …
Persistent link: https://www.econbiz.de/10011605167
capital investment. We argue that this is due to the emergence of new corporate giants rather than the growth of existing ones …
Persistent link: https://www.econbiz.de/10013316290
investment decisions. Our findings support the hypothesis that financial flexibility relates to companies’ ability to undertake … future investment, despite market frictions hampering possible profitable growth opportunities. …
Persistent link: https://www.econbiz.de/10011605675
We show that credit supply shocks have a strong impact on firm-level as well as aggregate investment by applying the … are found to impair firm-level investment in all firms in our sample, but in particular for small firms and those with no … 20-40% of aggregate investment dynamics. …
Persistent link: https://www.econbiz.de/10011605959
firms to contract investment, employment, and assets. The legal reform may distort investment and asset allocation decisions …
Persistent link: https://www.econbiz.de/10011605963
We assess the impact of credit constraints on investment, inventories and other working capital and firm growth with a …, as firms with poor investment and growth opportunities may have a higher probability of being credit constrained. We … implement several strategies to overcome this obstacle: proxies for investment opportunities, lagged regressors, random effects …
Persistent link: https://www.econbiz.de/10011853314
This paper investigates the link between corporate debt and investment for a group of five peripheral euro area … countries. Using firm-level data from 2005-2014, we postulate a non-linear corporate leverage-investment relationship and derive … thresholds beyond which leverage has a negative and significant impact on investment. The investment sensitivity of debt …
Persistent link: https://www.econbiz.de/10011804416