nep-cfn New Economics Papers
on Corporate Finance
Issue of 2017‒05‒14
six papers chosen by
Zelia Serrasqueiro
Universidade da Beira Interior

  1. firm risk and performance: the role of corporate governance in Amfirst reit By rozli, alyaa asyiqin
  2. Later Stage and Growth Capital in the Czech Republic By Bozena Kaderabkova; Ond?ej Ptá?ek
  3. Commercialization Strategy and IPO Underpricing By Serena Morricone; Federico Munari; Raffaele Oriani; Gaetan de Rassenfosse
  4. Bank Credit, Liquidity Shocks and Firm Performance: Evidence from the Financial Crisis of 2007-2009 By Tamara Vovchak
  5. Do demand or supply factors drive bank credit,in good and crisis times? By Gabriel Jiménez; Steven Ongena; José-Luis Peydró; Jesús Saurina
  6. "Keeping it personal" or "getting real"? On the drivers and effectiveness of personal versus real loan guarantees By Sergio Mayordomo; Antonio Moreno; Steven Ongena; María Rodríguez-Moreno

  1. By: rozli, alyaa asyiqin
    Abstract: This paper examines the relationships between corporate government and firm performance and its impact on firm performance and risk of real estate investment trust (AmFIRST REIT). Researchers have to assumed what is the different forms of corporate government and firm performance there is no interact in their effect on its impact on firm performance and risk of real estate investment trust (AmFIRST REIT). The data obtained from annual report of AmFIRST REIT starting from 2011-2015. Focus on ratio which is return on asset, return on investment, return on equity, current ratio, total asset turnover and debt ratio. Corporate executive shareholdings supplement have the relationship between outside institutional shareholdings and with their firms performance in this industry. All this findings suggest that internal and external coalitions interact with each other to influences the firms conduct.
    Keywords: credit risk, liquidity, profitability and microeconomics
    JEL: G3 G34
    Date: 2017–04–16
  2. By: Bozena Kaderabkova (Czech Technical University in Prague); Ond?ej Ptá?ek (University of Economics, Prague, Faculty of Economics)
    Abstract: The paper analyses later stage venture capital and growth capital investment activity in the Czech Republic. These segments of private equity investments follow up with early stage venture capital segments such as start-up capital. Our earlier research has shown that the development of the Czech venture capital market does not comply with European activity over 2007-2015. This paper further enhances the research for this following private equity segments and provides comparison with early stage venture capital market development. The later stage and growth capital investments follow the overall European trends with only more substantial jumps in investment activity caused by relatively more important occurance of larger transactions due to smaller market size.
    Keywords: venture capital, growth capital, asset management, private equity, financial markets, market failure, government failure
    JEL: G24
    Date: 2017–04
  3. By: Serena Morricone (HEC Lausanne); Federico Munari (University of Bologna); Raffaele Oriani (LUISS Guido Carli); Gaetan de Rassenfosse (Ecole polytechnique federale de Lausanne)
    Abstract: This paper studies the interplay between two defining features of technology-based firms: licensing as a commercialization strategy and the reliance on equity financing. Within the context of an IPO, we argue that the technology commercialization strategy of a firm going public affects information asymmetries and, therefore, IPO underpricing. In particular, we theorize that underpricing will be higher when a firm’s technology commercialization strategy is more based on licenses. We also posit that the size of the patent portfolio will mitigate this effect. Our results from a sample of 130 IPOs in the U.S. Semiconductor industry confirm these predictions.
    Keywords: Initial public offering (IPO), Underpricing, License, Patent, Semiconductor
    JEL: G32 L24 L63 M13 O32 O34
    Date: 2017–05
  4. By: Tamara Vovchak
    Abstract: This paper provides evidence about the transmission of banking sector problems to the real sector, and examines the impact of bank credit supply frictions on firm performance. I exploit differences in the composition of banks' liabilities structure during the financial crisis of 2007-2009 as a source of exogenous variation in the availability of bank credit to nonfinancial firms, in order to identify the causal relationship between bank credit supply and firm performance, measured by firms' stock returns. My evidence indicates that banking relationships are important for firms. Firms whose banks relied more on core deposit financing had a lower decline in bank credit during the crisis than those whose banks were mainly financed by noncore sources of funding. I document a positive relationship between changes in bank credit and firms' stock returns during the crisis: a one standard deviation decline in bank credit to a firm causes a stock return reduction of 3.5 percentage points, while firms that had lending relationships with healthier banks had a lower decline in bank credit and thereby lower reductions in their stock returns during the crisis.
    Keywords: bank credit; bank liquidity shock; financial crisis; relationship lending; firm financial constraints; firm performance;
    JEL: E44 G21 G32 L25
    Date: 2017–03
  5. By: Gabriel Jiménez; Steven Ongena; José-Luis Peydró; Jesús Saurina
    Abstract: We analyze the impact of balance-sheet strength on credit availability. Bank balance sheets are weak in crisis times, but so are those of firms, and credit demand is then also weak. For identification, we exploit an administrative dataset of loan applications matched with bank and firm variables covering Spain from 2002 to 2010. Bank balance-sheet strength determines the granting of loan applications only in crisis times, while firm balance-sheet strength – notably leverage – determines strongly this granting in both good and crisis times. Our findings underscore the importance of the strength of corporate balance sheets over credit supply for credit availability.
    Keywords: firm balance-sheet channel, credit demand, bank lending channel, credit supply, business cycle, credit crunch, leverage.
    JEL: E44 G01 G21 G28 G32
    Date: 2017–04
  6. By: Sergio Mayordomo (Banco de España); Antonio Moreno (University of Navarra); Steven Ongena (University of Zurich, Swiss Finance Institute, KU Leuven, and CEPR); María Rodríguez-Moreno (Banco de España)
    Abstract: Little is known about the drivers and effectiveness of personal as opposed to real loan guarantees provided by firms. This paper studies a dataset of 477,209 loan contracts granted over the 2006-2014 period by one Spanish financial institution consisting of several distinguishable organisational units. While personal guarantees are mostly driven by the economic environment as reflected in firm and bank conditions, real guarantees are mostly explained by loan characteristics. In response to higher capital requirements imposed by the European authorities in 2011, personal guarantee requirements increased significantly more than their real counterparts. Our results imply that personal guarantees can discipline firms in their risk-taking, but their overuse can limit this positive effect and damage their performance.
    Keywords: banks, asymmetric information, real guarantees, personal guarantees, risk-taking, capital requirements
    JEL: D43 E32 G21 G32
    Date: 2017–05

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