We examine the impact of 2007‐2008 financial crisis on nonfinancial firms’ financing and investment activities role corporate governance in alleviating adverse consequences external capital supply shock. Employing a difference‐in‐differences research design, we find that better mitigates disruption caused by bank credit shock to activities. A variety robustness tests suggest our findings are unlikely be driven an endogeneity problem. obtain similar results when extend sample period include...

ABSTRACT How does quotation transparency affect financial market performance? Biais's irrelevance proposition in 1993 shows that centralized markets yield the same expected bid–ask spreads as fragmented markets, other things equal. However, de Frutos and Manzano demonstrated 2002 are smaller participants prefer to trade markets. This paper introduces liquidity traders' costs of searching for a better quote into Biais model derives opposite conclusions these previous studies: traders while makers

This paper uses some basic assumptions to derive the life distribution of product under accelerated testing by progressive stress, when design constant stress follows an exponential or a Weibull distribution. It discusses special case acceleration equation satisfies inverse power law and is directly proportional time. Maximum likelihood (ML) methods estimators are derived their properties discussed, eg, invariance, uniqueness, existence.

Abstract This study documents a positive and robust effect of co‐opted boards on firm innovation. is mainly driven by independent directors. Firms with more directors are associated lower sensitivities CEO pay turnover to performance. It suggests that promote innovation insulating managers’ career concerns from risk supporting incentive contracts motivate Overall, our provides new evidence benefiting

This paper empirically investigates board meeting attendance and its effects on profit performance of Taiwanese listed corporations. High by directors themselves can enhance a firm's profitability but higher their representatives has an adverse effect. Independence or is also positively associated with firm performance. These results largely hold even when the sample decomposed to count for different ownership structures director types. There are few factors determining attendance. Outside...

This paper develops a novel approach to information-based securities trading by characterizing the hidden state of market, which varies following Markov process. Extensive simulation demonstrates that can successfully identify market states and generate dynamic measures outperform prevailing models. A sample 120 NYSE stocks further verifies it better depict dynamics. With this sample, we characterize features information asymmetry belief dispersion around earnings announcements. The is also...

Abstract This study investigates the relationship between volatility of stock market indexes and trading volumes their exchange traded funds (ETFs). Using both ordinary least squares generalized autoregressive conditional heteroskedasticity approaches, we demonstrate that contemporaneous volume S&P 500 ETFs is a key determinant at monthly daily frequencies. Vector estimation on other hand suggests two‐way Granger causality ETFs. A replication analysis corresponding tracking these...

Abstract Using a sample of Australian stocks during the 1996–2014 period, this study examines how tax heterogeneity between domestic and foreign investors affects trading behaviour stock prices around ex‐dividend day. Domestic prefer dividends tend to buy cum‐dividend sell them whereas trade in opposite direction. Abnormal turnover increases with heterogeneity. Moreover, larger investor base are associated higher price drop‐off ratio on day market value franking credits. Overall, our...

Abstract We examine whether corporate decisions such as share repurchases influence a firm’s intangible assets and their production. find significantly negative relationship between firm innovation. The survives all considered robustness tests. further apply two identification strategies, namely, difference‐in‐differences analysis instrumental variables estimation, to establish that the effect is causal; is, from

This paper fleshes out the rent extraction view of CEO compensation put forward by managerial power theory (Bebchuk et al., 2002), and tests its main implications on relation between structure pay. For a measure most relevant to theory, we use pay slice due Bebchuk al. (2011). Based sample S&P500 firms ovor period 1999-2008, find that implied is largely supported. Our findings suggest has relevance in explaining when focus bargaining power. Given multiple dimensions power, however, scope may...

This paper studies the effects of principal's risk aversion on principal-agent relationship under hidden information. It finds that agent's equilibrium effort increases and approaches efficient level as tends to infinity. Allowing for random participation by agent, his can be even when is finite. For case common agency with participation, it optimal principals make agent residual claimant profits principals' net monotonically decrease zero their

Purpose Although economic theory generally does not support government intervention in international trade, casual observation shows that many developing countries adopt certain trade policies to promote their exports. The objective of this paper is answer the question whether can benefit from export promotion. Design/methodology/approach This considers a country which has import new technology world market improve its productivity. If it rigidities, short foreign exchange and domestic firms...