A Fast Literature Search Engine based on top-quality journals, by Dr. Mingze Gao.
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- Please kindly let me know [mingze.gao@mq.edu.au] in case of any errors.
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Results 536 resources
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The design of the New York City (NYC) high school match involved trade-offsamong efficiency, stability, and strategy-proofness that raise new theoreticalquestions. We analyze a model with indifferences – ties – in school preferences.Simulations with field data and the theory favor breaking indifferencesthe same way at every school – single tiebreaking – in a student-proposingdeferred acceptance mechanism. Any inefficiency associated with a realizedtiebreaking cannot be removed without harming student incentives. Finally,we empirically document the extent of potential efficiency loss associated withstrategy-proofness and stability, and direct attention to some open questions.(JEL C78, D82, I21)
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We study the determinants of vertical integration in a new data set of over 750,000 firms from 93 countries. We present a number of theoretical predictions on the interactions between financial development, contracting costs, and the extent of vertical integration. Consistent with these predictions, contracting costs and financial development by themselves appear to have no effect on vertical integration. However, we find greater vertical integration in countries that have both greater contracting costs and greater financial development. We also show that countries with greater contracting costs are more vertically integrated in more capital‐intensive industries.
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We argue that when bankruptcy code is creditor friendly, excessive liquidations cause levered firms to shun innovation, whereas by promoting continuation upon failure, a debtor-friendly code induces greater innovation. We provide empirical support for this claim by employing patents as a proxy for innovation. Using time-series changes within a country and cross-country variation in creditor rights, we confirm that a creditor-friendly code leads to a lower absolute level of innovation by firms, as well as relatively lower innovation by firms in technologically innovative industries. When creditor rights are stronger, technologically innovative industries employ relatively less leverage and grow disproportionately slower.
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This paper analyzes why gold mining firms use options instead of linear strategies to hedge their gold price risk. Consistent with financial constraints based theories, the largest and least financially constrained firms are the most likely to hedge with insurance strategies (put options), while more constrained firms finance the purchase of puts by selling calls (collars). The most financially constrained firms use strategies that involve selling calls. Firms with large investment programs are also more likely to use insurance rather than linear strategies. Firms' hedging instrument choices are also correlated with current market conditions, suggesting that managers' market views partially drive hedging instrument choices.
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We show that female directors have a significant impact on board inputs and firm outcomes. In a sample of US firms, we find that female directors have better attendance records than male directors, male directors have fewer attendance problems the more gender-diverse the board is, and women are more likely to join monitoring committees. These results suggest that gender-diverse boards allocate more effort to monitoring. Accordingly, we find that chief executive officer turnover is more sensitive to stock performance and directors receive more equity-based compensation in firms with more gender-diverse boards. However, the average effect of gender diversity on firm performance is negative. This negative effect is driven by companies with fewer takeover defenses. Our results suggest that mandating gender quotas for directors can reduce firm value for well-governed firms.
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We present new evidence on consumer liquidity constraints and the credit marketconditions that might give rise to them. We analyze unique data from a largeauto sales company serving the subprime market. Short-term liquidity appearsto be a key driver of consumer behavior. Demand increases sharply during taxrebate season and purchases are highly sensitive to down-payment requirements.Lenders also face substantial informational problems. Default rates risesignificantly with loan size, providing a rationale for loan caps, and higher-riskborrowers demand larger loans. This adverse selection is mitigated, however,by risk-based pricing. (JEL D14, D82, D83, G21)
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We examine whether a large shareholder can alleviate conflicts of interest between managers and shareholders through the credible threat of exit on the basis of private information. In our model, the threat of exit often reduces agency costs, but additional private information need not enhance the effectiveness of the mechanism. Moreover, the threat of exit can produce quite different effects depending on whether the agency problem involves desirable or undesirable actions from shareholders' perspective. Our results are consistent with empirical findings on the interaction between managers and minority large shareholders and have further empirical implications.
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Journals
- American Economic Review (217)
- Journal of Finance (79)
- Journal of Financial Economics (93)
- Review of Financial Studies (147)
Topic
- Bond (26)
- CEO (14)
- Mergers and Acquisitions (9)
- Director (8)
- Capital Structure (4)
Resource type
- Journal Article (536)