Using recent data, we reject the hypothesis that the buyback anomalies first reported by Lakonishok and Vermaelen (1990, Journal of Finance 45:455-77) and Ikenberry, Lakonishok, and Vermaelen (1995, ...Journal of Financial Economics 39:181-208) have disappeared over time. We find evidence consistent with the hypothesis that open market repurchases are a response to a market overreaction to bad news: significant analyst downgrades, combined with overly pessimistic forecasts of long-term earnings. Stock prices after tender offers are set as if all investors tender their shares, but empirically they do not. Thus, the arbitrage opportunity persists because the market sets prices as if the average, not the marginal investor, determines the stock price
Capital Structures in Developing Countries Booth, Laurence; Aivazian, Varouj; Demirguc-Kunt, Asli ...
The Journal of finance (New York),
February 2001, Letnik:
56, Številka:
1
Journal Article
Recenzirano
This study uses a new data set to assess whether capital structure theory is portable across countries with different institutional structures. We analyze capital structure choices of firms in 10 ...developing countries, and provide evidence that these decisions are affected by the same variables as in developed countries. However, there are persistent differences across countries, indicating that specific country factors are at work. Our findings suggest that although some of the insights from modern finance theory are portable across countries, much remains to be done to understand the impact of different institutional features on capital structure choices.
The international politics of the Middle East fills a major gap in the field of middle eastern political studies by combining international relations theory with concrete case studies. It will be of ...immense benefit to students of middle eastern politics, international relations and comparative politics. The book begins with an overview of the rules and features of the middle east regional system - the arena in which the local states, including Egypt, Turkey, Israrel and Arab states od Syria, Jordan and Iraq, operate. It goes on to analyse foreign policy-making in key states, illustrating how systematic determinants contrain this policy-making, and how these contraints are dealt with in distinctive ways depending on particular domsetic features of the individual states. Finally, the book goes on to look at the outcomes of state policies by examining several major conflicts including the Arab-Israeli conflict and the Gulf War, and the system of regional alignment. The book assesses the impact of international pentrartion in the region, including the hsitorica reasons behind the formation of the regional state system. It also analyses the continued role of the external great powers, such as the United States and the former Soviet Union and explains the process by which the region has besome incorporated into the global capitalist market.
This paper analyzes how the implicit difference in time horizons between refugees and economic immigrants affects subsequent human capital investments and wage assimilation. The analysis uses the ...1980 and 1990 Integrated Public Use Samples of the Census to study labor market outcomes of immigrants who arrived in the United States from 1975 to 1980. I find that in 1980 refugee immigrants in this cohort earned 6% less and worked 14% fewer hours than economic immigrants. Both had approximately the same level of English skills. The two immigrant groups had made substantial gains by 1990; however, refugees had made greater gains. In fact, the labor market outcomes of refugee immigrants surpassed those of economic immigrants. In 1990, refugees from the 1975-1980 arrival cohort earned 20% more, worked 4% more hours, and improved their English skills by 11% relative to economic immigrants. The higher rates of human capital accumulation for refugee immigrants contribute to these findings.
Local Instruments, Global Extrapolation Bisbee, James; Dehejia, Rajeev; Pop-Eleches, Cristian ...
Journal of labor economics,
07/2017, Letnik:
35, Številka:
S1
Journal Article
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Odprti dostop
We investigate the external validity of local average treatment effects (LATEs), specifically Angrist and Evans’s use of same sex of the two first children as an instrumental variable for the effect ...of fertility on labor supply. We estimate their specification in 139 country-year censuses using Integrated Public Use Microdata Sample–International data. We compare each country-year’s actual LATE to the extrapolated LATE from other country-years. We find that, with a sufficiently large reference sample, we extrapolate the treatment effect reasonably well, but the degree of accuracy depends on the extent of covariate similarity between the target and reference settings.
This paper explores the empirical relevance of banking market structure on growth. There is substantial evidence of a positive relationship between the level of development of the banking sector of ...an economy and its long-run output growth. Little is known, however, about the role played by the market structure of the banking sector on the dynamics of capital accumulation. This paper provides evidence that bank concentration promotes the growth of those industrial sectors that are more in need of external finance by facilitating credit access to younger firms. However, we also find evidence of a general depressing effect on growth associated with a concentrated banking industry, which impacts all sectors and all firms indiscriminately.
Rents, Competition, and Corruption Ades, Alberto; Di Tella, Rafael
The American economic review,
09/1999, Letnik:
89, Številka:
4
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Odprti dostop
Theoretically the effect of competition on corruption is ambiguous. Less competition means firms enjoy higher rents, so that bureaucrats with control rights over them, such as tax inspectors or ...regulators, have higher incentives to engage in malfeasant behavior. Examples of a positive connection between rents and corruption abound, however. The hypothesis that natural rents, as in the case of oil, and rents induced by lack of product market competition foster corruption, is examined. A model is set up connecting rents to corruption.
Skill Bias of World Trade Epifani, Paolo; Gancia, Gino
The Economic journal (London),
July 2008, Letnik:
118, Številka:
530
Journal Article
Recenzirano
This article suggests that international trade, even between identical countries, can raise the relative demand for skilled labour. It shows that a simple generalisation of Krugman's (1979) model of ...trade in differentiated products has implications for the skill premium, through economies of scale rather than Hecksher-Ohlin effects, that are consistent with a number of stylised facts. It provides new evidence in support of these results by showing that increases in market size lead to higher returns to education, skill premia and income inequality.
This study examines the effects of air quality regulation on economic activity. Anecdotal evidence and some recent empirical studies suggest that an inverse relationship exists between the stringency ...of environmental regulations and new plant formations. Using a unique county-level data set for New York State from 1980 to 1990, we revisit this conjecture using a seminonparametric method based on propensity score matching. Our empirical estimates suggest that pollution-intensive plants are responding to environmental regulations; more importantly, we find that traditional parametric methods used in previous studies may dramatically understate the impact of more stringent regulations.
Using data from the 1986 oil price decrease, I examine the capital expenditures of nonoil subsidiaries of oil companies. I test the joint hypothesis that 1) a decrease in cash/collateral decreases ...investment, holding fixed the profitability of investment, and 2) the finance costs of different parts of the same corporation are interdependent. The results support this joint hypothesis: oil companies significantly reduced their nonoil investment compared to the median industry investment. The 1986 decline in investment was concentrated in non oil units that were subsidized by the rest of the company in 1985.
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