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The financial leverage of Insurers subject to price regulation: evidence from Canada
Strauss, Jason David - Volkswirtschaftliche Fakultät, … - 2008
The variation in the degree of price regulation in the property-liability insurance market in Canada varies across time and space, creating an opportunity to test a recurring theory in regulatory economics: that price regulated firms have higher levels of financial leverage. Using an...
Persistent link: https://www.econbiz.de/10005837467
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Price Regulation, Market Exit, and Financial Leverage of Canadian Property-Liability Insurers
Strauss, Jason - Volkswirtschaftliche Fakultät, … - 2007
regulators. Prior research suggests that firms increase their financial leverage, and thus their probability of bankruptcy and … expected bankruptcy costs, in order to mitigate the severity of binding price ceilings. Although financial leverage can be … insurers as well as the probability of bankruptcy, the non-selection probability. …
Persistent link: https://www.econbiz.de/10005837519
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Effects of streaming loans for commodity producers
Bell, Peter Newton - Volkswirtschaftliche Fakultät, … - 2014
This paper analyzes a source of financing for commodity producers known as a streaming loan, where the producer makes periodic payments in proportion to their level of production. Streaming loans functions like a cropshare contract, whereas fixed rate debt is like a wage contract. Thus,...
Persistent link: https://www.econbiz.de/10011274399
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Why do firms issue equity? Some evidence from an emerging economy, India
Saumitra, Bhaduri - Volkswirtschaftliche Fakultät, … - 2012
In contrast to the existing empirical research on the pecking order hypothesis which has been largely confined to the United States and a few other advanced countries, this paper attempts to test the hypothesis for an emerging economy through a case study of the Indian Corporate sector. A well...
Persistent link: https://www.econbiz.de/10011258879
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Determinants of Capital Structure: Evidence from a Major Emerging Market Economy
Bülent, Köksal; Cüneyt, Orman; Arif, Oduncu - Volkswirtschaftliche Fakultät, … - 2013
This paper uses a new and comprehensive dataset to investigate the capital structure of non-financial firms in a major emerging market economy, Turkey. We study both statistical and economic significance of four types of leverage factors: Firm-specific, tax-related, industry-specific, and...
Persistent link: https://www.econbiz.de/10011259490
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Preserving "Debt Capacity" or "Equity Capacity": A Dynamic Theory of Security Design under Asymmetric Information
Inderst, Roman; Vladimirov, Vladimir - Volkswirtschaftliche Fakultät, … - 2012
In a dynamic model of optimal security design, we show when firms should preserve "equity capacity" through choosing high target leverage or "debt capacity" through choosing low target leverage. Thereby, firms reduce a problem of underinvestment or overinvestment when they must raise future...
Persistent link: https://www.econbiz.de/10011259963
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The Impact of Institutional Environment in Firms´ Capital Structure during the Recent Financial Crises
Alves, Paulo; Francisco, Paulo - Volkswirtschaftliche Fakultät, … - 2013
This paper reviews the impact of environmental variables on firms’ capital structure throughout the recent financial crises (dot.com bubble, subprime crisis, and European sovereign debt crisis). For the first time, the sovereign general gross debt and current account balance appear in the...
Persistent link: https://www.econbiz.de/10011260294
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Board of directors’ composition and financing choices
Alves, Paulo; Couto, Eduardo; Francisco, Paulo - Volkswirtschaftliche Fakultät, … - 2014
Building on the pecking order theory of Myers and Majluf, (1984) and Myers (1984), the present study empirically analyses the association between the board of directors’ composition and firm financing policies. Particularly, the fraction of independent directors on the board, the fraction of...
Persistent link: https://www.econbiz.de/10011260532
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Determinants of capital structuring: an empirical study of growth and financing behavior of firms of textile sector in Pakistan
Chhapra, Imran Umer; Asim, Muhammad - Volkswirtschaftliche Fakultät, … - 2012
Purpose- Purpose of this study is to investigate the determinants of optimal capital structuring that affect growth and financing behavior of textile sector firms in Pakistan keeping in view the important role capital structuring plays in any firm's financial management decisions and the...
Persistent link: https://www.econbiz.de/10011260735
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Leverage and Employee Death: Evidence from China’s Coalmining Industry
Nie, Huihua; Zhao, Huainan - Volkswirtschaftliche Fakultät, … - 2013
China’s coalmining fatalities were 140 times higher than the U.S. in the last decade. To shed light on this issue, we form and examinea unique panel dataset of 25,387 firm-year observations for China’s coalmining industry. We show that a firm’s leverage significantly determines its...
Persistent link: https://www.econbiz.de/10011260832