We examine the relation between institutional holdings and payout policy in U.S. public firms. We find that payout policy affects institutional holdings. Institutions avoid firms that do not pay ...dividends. However, among dividend-paying firms they prefer firms that pay fewer dividends. Our evidence indicates that institutions prefer firms that repurchase shares, and regular repurchasers over nonregular repurchasers. Higher institutional holdings or a concentration of holdings do not cause firms to increase their dividends, their repurchases, or their total payout. Our results do not support models that predict that high dividends attract institutional clientele, or models that predict that institutions cause firms to increase payout.
This paper analyzes institutional investors' demand for stock characteristics and the implications of this demand for stock prices and returns. We find that “large” institutional investors nearly ...doubled their share of the stock market from 1980 to 1996. Overall, this compositional shift tends to increase demand for the stock of large companies and decrease demand for the stock of small companies. The compositional shift can, by itself, account for a nearly 50 percent increase in the price oflarge-company stock relative to small-company stock and can explain part of the disappearance of the historical small-company stock premium.
The paper presents empirical evidence based on the U.S. Consumer Expenditure Survey that accounting for limited asset market participation is important for estimating the elasticity of intertemporal ...substitution. Differences in estimates of the EIS between asset holders and non–asset holders are large and statistically significant. This is the case whether estimating the EIS on the basis of the Euler equation for stock index returns or the Euler equation for Treasury bills, in each case distinguishing between asset holders and non–asset holders as best as possible. Estimates of the EIS are around 0.3–0.4 for stockholders and around 0.8–1 for bondholders and are larger for households with larger asset holdings within these two groups.
Dating the integration of world equity markets Bekaert, Geert; Harvey, Campbell R.; Lumsdaine, Robin L.
Journal of financial economics,
08/2002, Letnik:
65, Številka:
2
Journal Article
Recenzirano
Odprti dostop
Regulatory changes that appear comprehensive will have little impact on the functioning of a developing market if they fail to lead to foreign portfolio inflows. We specify a reduced-form model for a ...number of financial time series and search for a common, endogenous break in the data generating process. We also estimate a confidence interval for the break. Our endogenous break dates are accurately estimated but do not always correspond closely to dates of official capital market reforms. Indeed, the endogenous dates are usually later than official dates, highlighting the important distinction between market liberalization and market integration.
. Recent contributions to the regional science literature have considered spatial effects in empirical growth specifications. In the case of spatial dependence, following theoretical arguments from ...new economic geography, and endogenous growth models, this phenomenon has been associated with the existence of externalities that cross regional borders. However, despite the general consensus that interactions or externalities are likely to be the major source of spatial dependence, they have been modelled in a rather ad hoc manner in most existing empirical studies. In contrast, we advocate basing the analysis on structural growth models which include externalities across economies, applying the appropriate spatial econometrics tools to test for their presence and estimate the magnitude of these externalities in the real world.
This paper aims at identifying the factors that have influenced the changes in the level of energy-related CO2 emissions. By means of decomposition method the observed changes are analysed in terms ...of four factors: pollution coefficient, energy intensity, structural changes and economic activity. The study refers to the major economic sectors of India for the period 1980-1996. The results show economic growth has the largest positive effect in CO2 emissions changes in all the major economic sectors. Emissions of CO2 in industrial and transport sectors show a decreasing trend due to improved energy efficiency and fuel switching. However, the reducing effect of the pollution coefficient and energy intensity on CO2 emissions in agricultural sector is almost nil. The energy intensity varies over a wider range and has had a greater impact on energy-induced CO2 emissions than the pollution coefficient. PUBLICATION ABSTRACT
Public firms that place equity privately experience positive announcements effects, with negative post-announcement stock-price performance. This finding is inconsistent with the underreaction ...hypothesis. Instead, it suggests that investors are overoptimistic about the prospects of firms issuing equity, regardless of the method of issuance. Further, in contrast to public offerings, private issues follow periods of relatively poor operating performance. Thus, investor overoptimism at the time of private issues is not due to the behavioral tendency to overweight recent experience at the expense of long-term averages.
The environmental Kuznets curve (EKC) hypothesis posits an inverted
U relationship between environmental pressure and per capita income. Recent research has examined this hypothesis for different ...pollutants in different countries. Despite certain empirical evidence showing that some specific environmental pressures have diminished in developed countries, the hypothesis could not be generalized to the global relationship between economy and environment at all. In this article, we contribute to this debate analyzing the trends of annual emission flux of six atmospheric pollutants in Spain. The study presents evidence that there is not any correlation between higher income level and smaller emissions, except for SO
2 whose evolution might be compatible with the EKC hypothesis. The authors argue that the relationship between income level and diverse types of emissions depends on many factors. Thus it cannot be thought that economic growth, by itself, will solve environmental problems.
We present evidence that the equity premium and the premium of value stocks over growth stocks are consistent in the 1982–96 period with a stochastic discount factor calculated as the weighted ...average of individual households’ marginal rate of substitution with low and economically plausible values of the relative risk aversion coefficient. Since these premia are not explained with an SDF calculated as the per capita marginal rate of substitution with a low value of the RRA coefficient, the evidence supports the hypothesis of incomplete consumption insurance. We also present evidence that an SDF calculated as the per capita marginal rate of substitution is better able to explain the equity premium and does so with a lower value of the RRA coefficient, as the definition of asset holders is tightened to recognize the limited participation of households in the capital market.
Growth Regimes over Time and Space Audretsch, David B.; Fritsch, Michael
Regional studies,
04/2002, Letnik:
36, Številka:
2
Journal Article
Recenzirano
This paper seeks to shed new light on the policy debate about whether regional economic development policy should be targeted towards fostering new firm start-ups or nurturing large, incumbent ...enterprises. We extend the concept of technological regimes for innovative activity in the industrial economics literature to develop a concept of growth regimes for the unit of observation of regions. Based on data for 74 regions in West Germany over a two-decade period, we identify the existence of four distinct growth regimes: the entrepreneurial regime; the routinized regime; the revolving door regime; and the declining regime. The empirical evidence suggests that no single type of regime accounts for growth. Rather, regional growth can result in regions focusing on large enterprises or new enterprises. Thus, we conclude that diverse growth regimes exist across both time and space. Cet article cherche à éclaircir le débat à propos du rôle de la politique de développement économique régional: devrait-elle cibler la création d'entreprise ou le développement des grandes entreprises existantes? La notion de régimes technologiques relatifs à l'innovation, tirée de la documentation sur l'économie industrielle, se voit étendre afin de développer la notion de régimes pour l'unité régionale observée. A partir des données auprès de 74 régions situées dans l'Allemagne de l'Ouest sur deux décennies, on identifie quatre régimes différents - le régime entreprise, le régime systématique, le régime transitoire et le régime déclin. Les preuves empiriques laissent voir que la croissance ne s'explique pas par un seul régime. Plutôt, la croissance régionale puisse avoir pour résultat des régions qui focalisent sur ou de grandes ou de nouvelles entreprises. Ainsi, on conclut que divers régimes existent sur le temps et dans l'espace. Der Beitrag behandelt die Frage, ob die Regionalpolitik auf die Stimulierung von Unternehmensgründungen oder die Förderung von bereits existierenden Betrieben konzentrieren sollte. Dabei erweitern wir das industrieökonomische Konzept der Technologischen Regime um eine regionale Dimension. Anhand von Daten für die Entwicklung von 74 westdeutschen Regionen über fast zwei Dekaden identifizieren wir vier verschiedene Entwicklungsregime - das entrepreneurhafte Regime, das routinisierte Regime, das Drehtür-Regime und das Niedergangs-Regime. Der empirische Befund zeigt, das tatsächlich solche Unterschiede hinsichtlich des regionalen Entwicklungsregimes bestehen, wobei es im Zeitablauf durchaus auch zu einem Wechsel des Regime-Typs kommen kann. Darüber hinaus legen die Ergebnisse die Schlussfolgerung nahe, dass der positive Einfluss von Gründungen auf die wirtschaftliche Entwicklung vor allem langfristiger Natur ist.
PDF
