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on Corporate Finance |
| By: | Hutschenreiter, Dennis; Liu, Qianshuo |
| Abstract: | Institutional common ownership of firm pairs in the same industry increases the likelihood of a preexisting social connection among their CEOs. We establish this relationship using a quasi-natural experiment that exploits institutional mergers combined with firms' hiring events and detailed information on CEO biographies. In addition, for peer firms, gaining a CEO connection from a hiring firm's CEO appointment correlates with higher returns on assets, stock market returns, and decreasing product similarity between companies. We find evidence consistent with common owners allocating CEO connections to shape managerial decision-making and increase portfolio firms' performance. |
| Keywords: | CEO appointments, CEO connections, common ownership, firm performance, product similarity |
| JEL: | G23 G32 G34 L21 L22 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:iwhdps:319068 |
| By: | Katrin Hussinger (DEM, Université du Luxembourg); Issah Wunnam (University of Leicester, UK) |
| Abstract: | We investigate whether family ownership is associated with a preference for patents or trade secrets. Using a sample of S&P 500 firms, we show that family ownership is negatively associated with patenting and positively associated with the usage of trade secrets. We further show that both relationships are moderated by firm performance below the aspiration level, i.e. the performance benchmark level that an organization sets. These results can be explained with a mixed gambles behavioral agency framework. When family firms perform below their aspiration level, prospective financial gains become relatively more important as compared to current socio emotional wealth so that patents become more and trade secrets less attractive. |
| Keywords: | Family firms, patents, trade secrets, mixed gambles, aspiration gap. |
| JEL: | O34 O32 G32 M14 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:luc:wpaper:25-11 |
| By: | Viral V. Acharya; Manasa Gopal; Sascha Steffen |
| Abstract: | Greater reliance on nonbank financing makes firms fragile as it leads banks to limit their access to credit lines. Besides demonstrating this result in panel tests subject to range of controls and robustness checks, we employ the 2014–16 oil-price collapse as an exogenous rollover risk in nonbank financing of non-oil-sector firms by collateralized loan obligations (CLOs) exposed to oil sector firms. Nonbank-reliant firms with looming maturities faced reductions and wider spreads in bank credit lines after the shock, resulting in weaker financial and real performance in spite of their drawdowns of existing credit lines. |
| JEL: | G01 G21 G23 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33760 |
| By: | Jaroslav Vlach (Faculty of Economics) |
| Abstract: | This study explores the financial dynamics, strategic growth, and innovation within the sugar production sector in Central and Eastern Europe (CEE) over the period 2013-2022. It focuses on six countries-Czech Republic, Austria, Germany, Poland, Hungary, Slovakia and analyzes 14 major sugar-producing companies using a combined methodological approach based on time-series trend analysis and Principal Component Analysis (PCA). Key financial metrics such as capital structure, working capital, operating revenue, profitability, and employment are examined to assess differences in performance across firms and countries. The research is framed by three central questions that investigate the interaction between company size, financial stability, national market context, and development potential. A major turning point for the sector-the abolition of the EU sugar quota system in autumn 2017-marked the beginning of a fully liberalized market environment, intensifying global competition and reshaping regional production strategies. The results indicate that larger firms tend to provide financial stability but exhibit limited growth trajectories, while smaller companies are more adaptable and often demonstrate stronger development potential. National differences are also significant: the Czech Republic and Poland emerge as dynamic and competitive markets; Austria and Germany reflect mature industries with constrained growth prospects; Hungary and Slovakia show financial challenges yet offer opportunities for development. By identifying structural trends and regional disparities, the study contributes to a deeper understanding of the post-quota sugar market. It offers relevant insights for policymakers and industry leaders aiming to balance financial health, innovation, and sustainability in order to ensure the sector's long-term competitiveness in a volatile global economy. |
| Keywords: | principal component analysis, dynamics of the sugar market, financial stability, company development, equity, Central and Eastern Europe |
| JEL: | C38 G30 L66 Q13 |
| Date: | 2025–04–22 |
| URL: | https://d.repec.org/n?u=RePEc:boh:wpaper:01_2025 |
| By: | Tobias Böhm; Antonia Hohmann; Roxanne Raabe; Nadine Riedel |
| Abstract: | A broad empirical literature examines the impact of corporate taxes on firms' investment, location, and tax avoidance behaviour. Other corporate adjustment margins have received little attention. In this paper, we use administrative customs and tax return data from South Africa to demonstrate that corporate taxes influence firms' export performance and their competitiveness in international product markets. |
| Keywords: | Corporate tax, Exports, Competition, Emerging markets, Commercial policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:unu:wpaper:wp-2025-38 |
| By: | Astrid Kunze; Katrin Scharfenkamp |
| Abstract: | This study examines the interplay of co-determination law and board gender quotas using novel board-director panel data for Norway. We present descriptive evidence suggesting that boards with employee representatives on boards of directors were more gender diverse before the gender quota. Difference-in-differences estimation results reveal that the differential effect of employee representation on gender diversity is negative after implementing the quota. Boards with employee representatives have recruited fewer women during the phase-in period and the flexible quota tended to be ineffective. We interpret the effect through employee representation as a potential mediating factor of board gender quotas on gender diversity. |
| Keywords: | employee representation, boards of directors, gender, leadership affirmative action, public policy, shareholder directors, firm size |
| JEL: | G34 J16 J53 J51 J78 M54 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11902 |
| By: | José Fillat; Mattia Landoni; John Levin; J. Christina Wang |
| Abstract: | The private credit market has grown rapidly in recent years, approaching the lending volume of some traditional sources of business credit, including commercial and industrial loans from banks, broadly syndicated loans, and high-yield bonds. This brief looks at the role US banks have played in that growth and the implications for stability in the US financial system. |
| Keywords: | private credit; banking linkages; liquidity provision |
| JEL: | G20 G23 G32 |
| Date: | 2025–05–21 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedbcq:99999 |
| By: | Lin Zhuo (Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific) |
| Abstract: | Multilateral development banks (MDBs) can play a crucial role in financing sustainable development in Asia and the Pacific, yet their capacity is constrained by insufficient capital and conservative lending practices. To address this, MDB shareholders should consider boosting equity capital because the current funding levels fall significantly short of meeting development financing needs of developing countries. In addition to capital injections, MDBs should consider including callable capital in their capital adequacy frameworks. Although not guaranteed, callable capital is a large part of the subscribed capital and can strengthen their ability to handle risks. Including callable capital, as demonstrated by the Inter-American Development Bank, can expand lending capacity of an MDB without compromising credit ratings. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:unt:pbmpdd:pb129 |