Corporate earnings and the equity premium
... where JL is the percentage jump in marginal utility, JP is the percentage jump in the stock price, and H is the elasticity of the stock price with respect to F : This expression illustrates that the equity premium implied by the model has three distinct components. The first term, gs2C ; corresponds ...
... where JL is the percentage jump in marginal utility, JP is the percentage jump in the stock price, and H is the elasticity of the stock price with respect to F : This expression illustrates that the equity premium implied by the model has three distinct components. The first term, gs2C ; corresponds ...
NBER WORKING PAPER SERIES RISK SHIFTING VERSUS RISK MANAGEMENT:
... constrained firms can lead to bankruptcy (Smith and Stulz (1985)) or to the inability to take profitable investment projects in the future (Mayers and Smith (1987), Froot, Scharfstein, and Stein (1993)). In contrast, the theory of asset substitution (Jensen and Meckling (1976)) suggests that manager ...
... constrained firms can lead to bankruptcy (Smith and Stulz (1985)) or to the inability to take profitable investment projects in the future (Mayers and Smith (1987), Froot, Scharfstein, and Stein (1993)). In contrast, the theory of asset substitution (Jensen and Meckling (1976)) suggests that manager ...
Organizational Capital - The Center for Global Enterprise
... in importance. Figures 1A, 1B and 1C decompose the stock market value of assets, computed as the market value of equity plus the book value of debt, for all publicly listed companies, the Standard and Poors (S&P) 500 companies and the Dow Jones Industrial companies, respectively, based on the data d ...
... in importance. Figures 1A, 1B and 1C decompose the stock market value of assets, computed as the market value of equity plus the book value of debt, for all publicly listed companies, the Standard and Poors (S&P) 500 companies and the Dow Jones Industrial companies, respectively, based on the data d ...
Regulatory Capital Disclosures
... positions are subject to credit risk capital requirements. Credit risk represents the potential for loss due to the default or deterioration in credit quality of a counterparty (e.g., an OTC derivatives counterparty or a borrower) or an issuer of securities or other instruments we hold. See “Risk-We ...
... positions are subject to credit risk capital requirements. Credit risk represents the potential for loss due to the default or deterioration in credit quality of a counterparty (e.g., an OTC derivatives counterparty or a borrower) or an issuer of securities or other instruments we hold. See “Risk-We ...
INVESTMENT BANKING
... Ratings and Other Definitions Stock Ratings: Piper Jaffray ratings are indicators of expected total return (price appreciation plus dividend) within the next 12 months. At times analysts may specify a different investment horizon or may include additional investment time horizons for specific stocks ...
... Ratings and Other Definitions Stock Ratings: Piper Jaffray ratings are indicators of expected total return (price appreciation plus dividend) within the next 12 months. At times analysts may specify a different investment horizon or may include additional investment time horizons for specific stocks ...
Political connections, founder-managers, and
... JEL classification: G32; G34 Keywords: Tunneling; Political connection; Founder-manager; Chairman; CEO ...
... JEL classification: G32; G34 Keywords: Tunneling; Political connection; Founder-manager; Chairman; CEO ...
Report on major Polish cities
... Throughout decades Polish cities struggled with the lack of financial means, unfavorable conditions for development, and legal regulations hampering local activity and people’s entrepreneurship. The cities’ inhabitants could only enviously watch the metropolises of the Western Europe, actively seeki ...
... Throughout decades Polish cities struggled with the lack of financial means, unfavorable conditions for development, and legal regulations hampering local activity and people’s entrepreneurship. The cities’ inhabitants could only enviously watch the metropolises of the Western Europe, actively seeki ...
Debt Structure and Financial Flexibility
... consider how the total level of debt, maturity, security, and priority may potentially impact a firm’s ability to raise new financing and undertake profitable investments. I find that firms with lower total debt (high debt capacity) are more financially flexible. Lower leverage increases future new ...
... consider how the total level of debt, maturity, security, and priority may potentially impact a firm’s ability to raise new financing and undertake profitable investments. I find that firms with lower total debt (high debt capacity) are more financially flexible. Lower leverage increases future new ...
Fees Eat Diversification`s Lunch
... hereafter) Long-term Capital Market Return Assumptions. This is a publiclyavailable set of asset class risk, return, and correlation assumptions. It covers 45 asset classes and has been updated annually; see Shairp et al. (2012). Second, we have access to a biennial fee survey from a major instituti ...
... hereafter) Long-term Capital Market Return Assumptions. This is a publiclyavailable set of asset class risk, return, and correlation assumptions. It covers 45 asset classes and has been updated annually; see Shairp et al. (2012). Second, we have access to a biennial fee survey from a major instituti ...
wiiw Research Report 393: Regional Policy and FDI Location – an
... Policy tools to influence the location choice of FDI fall into two main categories: fiscal and non-fiscal, with non-fiscal incentives being constituted by financial and non-financial incentives (Bartels and Crombrugghe, 2009). Fiscal incentives may comprise investment aid, tax holidays, tax-free imp ...
... Policy tools to influence the location choice of FDI fall into two main categories: fiscal and non-fiscal, with non-fiscal incentives being constituted by financial and non-financial incentives (Bartels and Crombrugghe, 2009). Fiscal incentives may comprise investment aid, tax holidays, tax-free imp ...
Technological Progress, Industry Rivalry, and Stock Returns
... equilibria, in which both firms invest simultaneously and leader-follower equilibria, in which the firm with the highest success rate in the innovation process is the first to invest in innovation. The model predicts that when leader-follower equilibria emerge: (i) the systematic risk of the leader ...
... equilibria, in which both firms invest simultaneously and leader-follower equilibria, in which the firm with the highest success rate in the innovation process is the first to invest in innovation. The model predicts that when leader-follower equilibria emerge: (i) the systematic risk of the leader ...
Hedge Funds How They Serve Investors in U.S. and Global Markets
... represent 1.1 percent of the total funds and assets of financial institutions. Nevertheless, studies show they account for a significant amount of the trading volume in U.S. equities and an even higher share in more complex financial instruments.14 For the eleven-year period from January 1, 1998 thr ...
... represent 1.1 percent of the total funds and assets of financial institutions. Nevertheless, studies show they account for a significant amount of the trading volume in U.S. equities and an even higher share in more complex financial instruments.14 For the eleven-year period from January 1, 1998 thr ...
Individual investment behaviour: a brief review of research (PDF
... There seems to be very little data about whether or not people make sensible choices when switching funds. One study in Australia highlighted problems with the advice provided to superannuation scheme members around fund switching, which involved advice to switch to higher fee funds with no counterv ...
... There seems to be very little data about whether or not people make sensible choices when switching funds. One study in Australia highlighted problems with the advice provided to superannuation scheme members around fund switching, which involved advice to switch to higher fee funds with no counterv ...
Capital and profitability in banking
... Therefore, in the second part of the analysis we present initial results from an improved specification that attempts to address this problem and provide a more robust test of the “expected bankruptcy costs” hypothesis. We estimate long run target capital ratios for US banks, using a dynamic panel ...
... Therefore, in the second part of the analysis we present initial results from an improved specification that attempts to address this problem and provide a more robust test of the “expected bankruptcy costs” hypothesis. We estimate long run target capital ratios for US banks, using a dynamic panel ...
Searching for Determinants of Pay or Not to Pay Cash Dividend in
... have a manager who still has family ties to the founding shareholders. Thus the agency problem is not as bad as occurs in countries with dispersed ownership structure. Although the conflict between public shareholders and managers are not dominant in companies with concentrated ownership structure, ...
... have a manager who still has family ties to the founding shareholders. Thus the agency problem is not as bad as occurs in countries with dispersed ownership structure. Although the conflict between public shareholders and managers are not dominant in companies with concentrated ownership structure, ...
PRUCO LIFE INSURANCE COMPANY PRUCO LIFE FLEXIBLE
... Portfolio of the Trust discussed in this supplement may not be available under your variable contract. For more information about the Portfolios available under your contract, please refer to your contract prospectus. The following should be read in conjunction with the Prospectus and should be reta ...
... Portfolio of the Trust discussed in this supplement may not be available under your variable contract. For more information about the Portfolios available under your contract, please refer to your contract prospectus. The following should be read in conjunction with the Prospectus and should be reta ...
Liquidity Policies and Systemic Risk
... due to lower distortions. Ratnovski [2009] points out that liquidity requirements can mitigate moral hazard due to public liquidity provision via lender of last resort facilities. Rochet [2008] provides an overview of liquidity regulation within the context of the banking literature. The main diffe ...
... due to lower distortions. Ratnovski [2009] points out that liquidity requirements can mitigate moral hazard due to public liquidity provision via lender of last resort facilities. Rochet [2008] provides an overview of liquidity regulation within the context of the banking literature. The main diffe ...
Did Stop Signs Stop Investor Trading?
... given that individuals tend to weigh stimuli that are more easily available (Tversky and Kahneman 1973; Kruschke and Johansen 1999), the introduction of such an easily available graphic should cause individuals to more heavily consider disclosure practices. And lastly, because limited attention inve ...
... given that individuals tend to weigh stimuli that are more easily available (Tversky and Kahneman 1973; Kruschke and Johansen 1999), the introduction of such an easily available graphic should cause individuals to more heavily consider disclosure practices. And lastly, because limited attention inve ...
Tangerine Investment Funds Simplified Prospectus
... to undertake more risk to achieve that (typically for equity funds that invest in specific countries or in specific sectors of the economy); and High – for investors seeking higher returns who are willing to take a substantial risk that they will lose money (typically for equity funds that invest in ...
... to undertake more risk to achieve that (typically for equity funds that invest in specific countries or in specific sectors of the economy); and High – for investors seeking higher returns who are willing to take a substantial risk that they will lose money (typically for equity funds that invest in ...
capital requirements and bank behaviour: the impact of
... Do banks adjust their capital ratios to meet the requirements by increasing capital or reducing riskweighted assets? Banks’ reactions to hitting regulatory constraints on their capital ratios are likely to vary according to the stage of the business cycle and the bank’s own financial situation. In ...
... Do banks adjust their capital ratios to meet the requirements by increasing capital or reducing riskweighted assets? Banks’ reactions to hitting regulatory constraints on their capital ratios are likely to vary according to the stage of the business cycle and the bank’s own financial situation. In ...
Stock Market Liquidity and the Cost of Issuing Equity
... these intermediation costs.2 Since it should be easier to place an equity issue in a liquid market than to place it in an illiquid market, the stock market liquidity of the issuing firm should be an important determinant of the investment banking fees. To test this hypothesis, we examine a sample of ...
... these intermediation costs.2 Since it should be easier to place an equity issue in a liquid market than to place it in an illiquid market, the stock market liquidity of the issuing firm should be an important determinant of the investment banking fees. To test this hypothesis, we examine a sample of ...
Early history of private equity
The early history of private equity relates to one of the major periods in the history of private equity and venture capital. Within the broader private equity industry, two distinct sub-industries, leveraged buyouts and venture capital experienced growth along parallel although interrelated tracks.The origins of the modern private equity industry trace back to 1946 with the formation of the first venture capital firms. The thirty-five-year period from 1946 through the end of the 1970s was characterized by relatively small volumes of private equity investment, rudimentary firm organizations and limited awareness of and familiarity with the private equity industry.