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equilibrium. We construct an estimate of the world portfolio of shares available to investors who are not controlling shareholders …. This available world portfolio differs sharply from the world market portfolio. In regressions explaining the portfolio … weights of U.S. investors, the world portfolio of available shares has a positive significant coefficient but the world market …
Persistent link: https://www.econbiz.de/10012755951
Firms added to the S&P 500 index join a prestigious and exclusive club. They want to fit in the club, which creates a “keeping up with the Joneses” effect. Firms pay more attention to their index peers after inclusion and their investment, external financing, and payouts comove more with...
Persistent link: https://www.econbiz.de/10012584272
As firms have more assets in place, more of management's limited attention is focused on managing assets in place rather than developing new growth options. Consequently, as firms grow older, they have fewer growth options and a lower ability to generate new growth options. This simple theory...
Persistent link: https://www.econbiz.de/10010227727
We examine the current state of the U.S. public corporation and how it has evolved over the last 40 years. After falling by 50 percent since its peak in 1997, the number of public corporations is now smaller than 40 years ago. These corporations are now much larger and over the last twenty years...
Persistent link: https://www.econbiz.de/10011962211
Using a large panel of firms across the world from 1991-2006, we show that the median foreign firm has lower …
Persistent link: https://www.econbiz.de/10012906234
Using a large panel of firms across the world from 1991-2006, we show that the median foreign firm has lower …
Persistent link: https://www.econbiz.de/10012906259
significant variation in the cross-section of stock returns of large banks across the world during that period. We use this …
Persistent link: https://www.econbiz.de/10013133787
, there is significant variation in the cross-section of stock returns of large banks across the world during that period. We …
Persistent link: https://www.econbiz.de/10013152303
Firms with greater financial flexibility should be better able to fund a revenue shortfall resulting from the COVID-19 shock and benefit less from policy responses. We find that firms with high financial flexibility within an industry experience a stock price drop lower by 26% or 9.7 percentage...
Persistent link: https://www.econbiz.de/10012216704
This paper investigates how public equity issuance is related to stock market liquidity. Using quarterly data on IPOs and SEOs in 36 countries over the period 1995-2008, we show that equity issuance is significantly and positively related to contemporaneous and lagged innovations in aggregate...
Persistent link: https://www.econbiz.de/10009782417