nep-cfn New Economics Papers
on Corporate Finance
Issue of 2019‒06‒10
five papers chosen by
Zelia Serrasqueiro
Universidade da Beira Interior

  1. Growth Surge: How Private Equity Can Scale Up Firms and the Economy By Daniel Schwanen; Jeremy Kronick; Farah Omran
  2. Asset Price Bubbles and Systemic Risk By Markus Brunnermeier; Simon Rother; Isabel Schnabel
  3. Ownership identity, strategy and performance: business group affiliates versus independent firms in India By Bhaumik, Sumon Kumar; Estrin, Saul; Mickiewicz, Tomasz
  4. Academic inventors: collaboration and proximity with industry By Crescenzi, Riccardo; Filippetti, Andrea; Iammarino, Simona
  5. Market-based Financing Reforms and Shareholder Valuations: Event Study Evidence from the Chinese Science and Technology Innovation Board By Qin, Yaohua; Xiao, He; Zhang, Yifei

  1. By: Daniel Schwanen (C.D. Howe Institute); Jeremy Kronick (C.D. Howe Institute); Farah Omran (C.D. Howe Institute)
    Keywords: Financial Services and Regulation; Business and Capital Taxation;Business Investment;Capital Markets;Venture Capital
    JEL: G32 G28 O16
    Date: 2019–05
  2. By: Markus Brunnermeier; Simon Rother; Isabel Schnabel
    Abstract: We analyze the relationship between asset price bubbles and systemic risk, using bank-level data covering almost thirty years. Systemic risk of banks rises already during a bubble’s build-up phase, and even more so during its bust. The increase differs strongly across banks and bubble episodes. It depends on bank characteristics (especially bank size) and bubble characteristics, and it can become very large: In a median real estate bust, systemic risk increases by almost 70 percent of the median for banks with unfavorable characteristics. These results emphasize the importance of bank-level factors for the build-up of financial fragility during bubble episodes.
    Keywords: Asset price bubbles, systemic risk, financial crises, credit booms, CoVaR, MES
    JEL: E32 G01 G12 G20 G32
    Date: 2019–05
  3. By: Bhaumik, Sumon Kumar; Estrin, Saul; Mickiewicz, Tomasz
    Abstract: We consider whether the impact of entrepreneurial orientation on business performance is moderated by the company affiliation with business groups. Within business groups, we explore the trade-off between inter-firm insurance that enables risk-taking, and inefficient resource allocation. Risk-taking in group affiliated firms leads to higher performance, compared to independent firms, but the impact of proactivity is attenuated. Utilizing Indian data, we show that risk-taking may undermine rather than improve business performance, but this effect is not present in business groups. Proactivity enhances performance, but less so in business groups. Firms can also enhance performance by technological knowledge acquisition, but these effects are not significantly different for various ownership categories
    Keywords: emerging economies; business groups; entrepreneurial orientation; India
    JEL: J50 G32
    Date: 2017–06–01
  4. By: Crescenzi, Riccardo; Filippetti, Andrea; Iammarino, Simona
    Abstract: This paper addresses a number of fundamental research questions on university-industry (U-I) collaborations. Are U-I collaborations intrinsically different from other forms of collaboration, such as inter-firm or inter-university collaborations? Are they more difficult to form? Is their output qualitatively different? What factors facilitate their development? By looking at the collaborative behavior of all Italian inventors over the 1978-2007 period, the empirical analysis shows that U-I collaborations are less likely to happen when compared to other types of collaboration, and suggests that they tend to generate patents of more general applicability in subsequent inventions. As emphasized by the literature, geographical proximity plays an important role in facilitating all forms of collaboration. At the same time, it works as a possible substitute for institutional proximity, facilitating U-I collaborations. However, the involvement of ‘star inventors’ on both sides of the collaboration can play an equally important role in ‘bridging’ universities and industry.
    Keywords: university-industry collaboration; institutional and geographical proximity; innovation; regions.; Intra-European Fellowship
    JEL: O31 O32 O33 R10
    Date: 2017–08–01
  5. By: Qin, Yaohua; Xiao, He; Zhang, Yifei
    Abstract: This paper studies the impact of the newly introduced science and technology innovation board (STIB) on stock valuations in China. This Nasdaq-style board features a market-based IPO system that contrasts with the current approved-based arrangement. Event study approach shows that A-share firms pertaining to STIB related industries increased significantly after the reform announcement. The effect is stronger for Non-SOEs and firms with higher R&D capacity. Public shareholders of the firms filing STIB IPO applications experienced salient growth in their abnormal returns while their industry competitors suffered price drops. Financial analysts also broadened their company coverages in STIB related industries and revised their market valuation forecasts positively in line with the market investors.
    Keywords: China's financial reform, Registration-based IPO system, Science and technology innovation board in China, Chinese financial markets.
    JEL: G18 G38 N25 O16
    Date: 2019–05–19

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