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on Corporate Finance |
| By: | Kiet Tuan Duong (School for Business and Society, University of York.); Luu Duc Toan Huynh (School of Business and Management, Queen Mary University of London.) |
| Abstract: | This paper investigates how weather-affected firms make decisions on fixed asset purchases and financing choices for fixed asset acquisition. Utilizing a unique dataset comprising over 26, 000 firms across 40 countries, we find that weather-affected firms are more prone to purchase fixed assets, increasing investments in machinery, equipment, and real estate. These purchases are primarily financed through equity, bank loans, and government grants. Particularly, we find leasing is a vital fallback financing source for firms experiencing losses due to extreme weather. Firms that exclusively rely on leasing rather than other financial sources are more likely the ones that face significant external financing barriers, including complex loan procedures, high collateral requirements, and increased loan rejection rates. Interestingly, weather-affected firms who have successfully obtained non-leasing finance for fixed asset purchases, have a higher tendency to also engage in leasing, underscoring that such firms adopt flexible strategies for fixed asset acquisition. |
| Keywords: | Extreme weather, Firm-level climate losses, Fixed assets, Financing decisions, leasing, Financial obstacles |
| JEL: | E44 F33 G15 L72 Q31 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:cgs:wpaper:116&r=cfn |
| By: | Pazhanisamy, R. |
| Abstract: | Small and Micro Enterprises (SMEs) in India are facing many problems such as unable to access to low cost credit from the formal financial institutions, specifically banking and extend their product to the remote markets. Some factors restrict the access to the finance on the input side while others restrict the products and its market outreach on the others side blocks the micro enterprises growth and lead to the rural population to be interlocked in chronic underemployment underdevelopment. With regard to this there are a very few research attempts are only available to test and verify the implication and operations of the Economic theories that highlights these two side issues rationalize how they contribute for the long run credit gap in the rural economy. Particularly the literature on the credit rationing theory on the input side of the financial inclusion policies and the pecking order theory on the demand side of the finance and their inter relationship with other theories like theory of moral hazard, agency theory, and the theory of adverse selection etc. are not documented and tested at the gross root level for which this paper attempted fill this gap. |
| Keywords: | Challenges of Micro Businesses, Issues of Rural Micro Enterprises, Test of theoretical impact on micro businesses, challenges of rural business Management, Financial inclusion challenges in rural areas |
| JEL: | D21 E32 G53 L22 L98 M30 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:289783&r=cfn |
| By: | Bram Timmermans (Norges Handelshøyskole (NHH)); Joanna Tyrowicz (Group for Research in Applied Economics (GRAPE); University of Warsaw; Institute of Labor Economics (IZA)); Lucas van der Velde (Group for Research in Applied Economics (GRAPE); University of Warsaw) |
| Abstract: | We address the gender wage gap in Europe, focusing on the impact of female representation in executive and non-executive boards. We use a novel dataset to identify gender board diversity across European firms, which covers a comprehensive sample of private firms in addition to publicly listed ones. Our study spans three waves of the Structure of Earnings Survey, covering 26 countries and multiple industries. Despite low prevalence of female representation and the complex nature of gender wage inequality, our findings reveal a robust causal link: increased gender diversity significantly decreases the adjusted gender wage gap. We also demonstrate that to meaningfully impact gender wage gaps, the presence of a single female representative in leadership is insufficient. |
| Keywords: | gender inequality, gender wage gaps, board composition, corporate governance, women representation |
| JEL: | J31 J71 J16 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:fme:wpaper:89&r=cfn |
| By: | Benjamin A. Jansen |
| Abstract: | This paper shows that theories focused solely on risk, and investors more generally, as the driver of asset returns may not be sufficiently reflecting relevant asset price inputs. This conclusion largely stems from prevalent asset pricing theories ignoring the firm side supply of value into their financial securities. |
| Keywords: | Asset Pricing, Cash Flow, Firms, Risk |
| JEL: | G12 G19 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:mts:wpaper:202401&r=cfn |
| By: | Klitzka, Michael; He, Jianan; Schiereck, Dirk |
| Abstract: | This study analyzes mergers and acquisitions (M&A) payment methods in large transactions of public U.S. acquirers between 2009 and 2016. While we find consistent with previous evidence that asymmetric information between acquirers and targets significantly influences the choice of M&A payment methods, we show that contrary to prevailing findings in the literature, acquirers cannot exploit their overvaluation through stock-financed M&A at targets’ disadvantage. In addition, when facing larger uncertainty in the counterparty’s valuation, a higher ratio of cash is applied in M&A payment. Our results document that both acquirers and targets are rational in choosing M&A payment methods. |
| Date: | 2024–04–02 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:144309&r=cfn |
| By: | Ben Posmanick (St Bonaventure University); Alex Obie (St Bonaventure University); Bobby Chung (USF) |
| Abstract: | We study the substitution between licensed and unlicensed workers and the quality effect of employing licensed professionals on firms. Leveraging a quasi-licensure mandate of the Sarbanes-Oxley Act (SOX) on audit committees of publicly-traded firms, this paper studies the employment spillover and quality effects of licensing at the firm level. Assembling multiple data sources, we identify independent directors with relevant licenses and the quality of accounting reports for more than 5, 200 publicly-traded firms. Exploiting plausibly exogenous year-by-firm variation in fixed-effect models, the licensure mandate of SOX significantly increases the appointment of certified public accountants (CPAs) at the expense of other types of professionals at the board level. We find a precise zero effect for the presence of CPAs on audit committees on the need to refile financial statements. |
| Keywords: | Occupational Licensing, Employment Spillover, Quality, Sarbanes-Oxley |
| JEL: | J44 G38 K10 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:usf:wpaper:2024-03&r=cfn |
| By: | Cole, Brittany M.; Gullett, Nell S. Gullett |
| Abstract: | We study the impact of bond exchange listing in U.S. publicly traded corporate bond markets. We find that listed corporate bonds have lower estimated bid-ask spreads than unlisted corporate bonds. Specifically, we show that listed bonds have estimated spreads of $0.14 lower than unlisted bond spreads. We find that execution venue matters for listed bonds, and that listed bond executions on the NYSE have higher trading costs than listed bond executions off-NYSE. We show that listed bonds are more volatile than unlisted bonds. Last, we study bond trading around earnings announcements and find a slight increase (decrease) in overall (institutional) volume on earnings announcement days compared to non-announcement days. |
| Keywords: | corporate bond, bond market, exchange listing, bid-ask spread, earnings announcement |
| JEL: | A1 G0 |
| Date: | 2024–03–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120601&r=cfn |