Showing 1 - 7 of 7
This paper studies the determinants of the value rights in U.S. corporations. Results support the hypothesis that the price of a vote is determined by the expected additional payment vote holders will receive for their votes in case of a control contest. The size of this differential payment is...
Persistent link: https://www.econbiz.de/10005815049
In the formative stages of their businesses, entrepreneurs have to provide incentives for employees to protect, rather than steal, the source of organizational rents. We study how the entrepreneur's response to this problem determines the organization's internal structure, growth, and its...
Persistent link: https://www.econbiz.de/10005814699
How much do cultural biases affect economic exchange? We answer this question by using data on bilateral trust between European countries. We document that this trust is affected not only by the characteristics of the country being trusted, but also by cultural aspects of the match between...
Persistent link: https://www.econbiz.de/10008517913
Work by Kaplan and Zingales provides both theoretical arguments and empirical evidence that investment-cash flow sensitivities are not good indicators of financing constraints. Fazzari, Hubbard, and Petersen {this Journal} criticize those findings. In this note we explain how the Fazzari et al....
Persistent link: https://www.econbiz.de/10005690829
Transactions take place in the firm rather than in the market because the firm offers power to agents who make specific investments. Past literature emphasizes the allocation of ownership as the primary mechanism by which the firm does this. Within the contractibility assumptions of this...
Persistent link: https://www.econbiz.de/10005692071
We study the effects of differences in local financial development within an integrated financial market. We construct a new indicator of financial development by estimating a regional effect on the probability that, ceteris paribus, a household is shut off from the credit market. By using this...
Persistent link: https://www.econbiz.de/10005737643
This paper investigates the relationship between financing constraints and investment-cash flow sensitivities by analyzing the firms identified by Steven Fazari, R. Glenn Hubbard, and Bruce Petersen as having unusually high investment-cash flow sensitivities. The authors find that firms that...
Persistent link: https://www.econbiz.de/10005549716