Using a randomized experiment in Chile, we study the impact role models have context of training program for micro–entrepreneurs. We show that being group randomly chosen to be visited by successful alumnus increases household income one year after, mostly due increased business participation and income. also provision personalized “consulting sessions” vis–à–vis sessions, observe similar effects on income, with model intervention significantly more cost-effective better suited less...

Forecasting of the outcome saving for retirement is challenging, particularly individuals who have limited financial literacy. We explore how reducing that barrier by offering personalized information affects long-term savings. To this end, we randomly offered or general within context individual accounts in Chile. Personalized increased voluntary pension Heterogeneity analysis suggests updating priors recipients played an important role. However, despite significant short-term response to...

Abstract Research Summary We examine the relationship among inheritance taxes, shareholder protection, and family firms' market value. Drawing on firm, corporate governance, institutional complementarities literature, we argue that taxes act as external governance mechanisms for decoupling business families' socioemotional goals. However, this depends upon minority investor protections. In strong protection countries, incentives self‐governance created by high are offset loss of autonomy...

We propose a model to estimate the private benefits of control in transfer transactions for broad range regulatory environments, from negotiations mandatory tender offers. The B arclay and H olderness' D yck Z ingales' lock Premium models are nested as special cases. With corporate regulation around world moving M arket R ule E qual O pportunity ule, our theoretical is flexible tool empirical studies. apply study effect implementation C hile's T ender ffer L aw 2000 find that premiums fell...

We exploit the heterogeneity in pollution permits allocation and variation price to identify a new channel by which cap-and-trade programs can affect firm decisions: they may investment through impact of free on firms cash flow. A with permit higher than its emissions will have inflow if increases, whereas whose are outflow increases. In margin both paying same for but flow consequences change prices differ. Using data from investor-owned utilities participating US SO2 program, we find that...

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En este artículo se revisa la regulación sobre transferencias de control vigente en el mundo y encontramos evidencia que a nivel global legislación está convergiendo desde regla mercado (MR, por sus siglas inglés) hacia igualdad oportunidad (EOR, inglés). La literatura racionalidad económica estas reglas muestra los beneficios privados del (BPC) afectan cambios control; particular, EOR tiene potencial bloquear ineficientes aunque también ralentizar actividad control. Jurfest, Paredes Riutort...

Abstract We study individuals' incentives to make investment decisions. Using data from a large pension system in Chile we find that individuals who are active managing their investments have, on average, poor performance. provide robust evidence suggesting learning plays an important part this phenomenon. Indeed, have made successful decisions the past go trade more frequently. However, result holds when using naive definition for Also, average performance is negatively related number of...

In global surveys, firms tend to state that access finance is their main obstacle operate or grow. But complaining about does not necessarily imply the firm financially constrained. We exploit idea facing external constraints should reinvest more heavily in internal funds, as many canonical models predict. Using surveys (2006-2019), we find profit reinvestment rate correlated various revealed measures of constraints. fact, higher for are young, small, have less tangible assets, and greater...

We study a new channel by which permit holdings in cap-and-trade system can affect investment behavior. In the presence of financial constraints, matter through their effect on firm's internally available resources and indirectly investment. To test this relationship, we exploit cross-sectional temporal variation price permits U.S. SO2 program. find that capital expenditures are positively related to market value holdings. This relationship is stronger for smaller firms robust alternative...

In order to determine market reactions an announcement of audit firm change we carry out event study between 2004 and 2013 65 publicly traded Chilean companies (they represent 95.8% the non-financial component main Stock Index: IPSA). We find that reacted positively when a company announced it will retain its for given year. rule possible bias in informational content event. Our result suggests overall, costs associated with company’s (start-up know how losses) overshadow benefits this (a...

Spanish Abstract: En este trabajo analizamos la evolución de regulación cambios control en Europa y estudiamos como el movimiento desde sistemas basados regla mercado a con reglas igualdad oportunidades va mano una caída los beneficios privados del control. Estimamos siguiendo metodología propuesta Jurfest, Paredes Riutort (2015) para muestra transacciones cambio empresas 14 países periodo 1985-2014 encontramos que han caído aproximadamente un 4% valor patrimonio después implementación oportunidades.

Firms in global surveys often state that access to finance is their primary obstacle growth. However, merely stating an does not necessarily imply the firm financially constrained. We examine idea firms facing external constraints should theory reinvest profits more heavily, as some canonical models financial economics predict. test this prediction using from 2006 2019. do find such higher profit reinvestment among \textit{state} most important obstacle. This puzzling null finding robust...