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Author: R. Krainer
Publisher: JAI Press
ISBN:
Category : Business & Economics
Languages : en
Pages : 364
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Book Description
Corporate Finance, Governance, and Business Cycles describes a model of how a financial system coordinates and shapes certain stylised facts of business cycles. The model is based on a conflict of interest between more risk averse bondholders, and less risk averse stockholders whose risk aversion changes over time. The corporate governance resolution of this conflict assigns the operating decisions of the firm to stockholders and the financing decisions to bondholders. Financing decisions are then linked to operating decisions in a way that coalesces the welfare of bondholders and stockholders over the business cycle. Evidence from the nonfinancial business sector of the G-7 countries does not reject the predictions of the model.
Author: R. Krainer
Publisher: JAI Press
ISBN:
Category : Business & Economics
Languages : en
Pages : 364
Get Book Here
Book Description
Corporate Finance, Governance, and Business Cycles describes a model of how a financial system coordinates and shapes certain stylised facts of business cycles. The model is based on a conflict of interest between more risk averse bondholders, and less risk averse stockholders whose risk aversion changes over time. The corporate governance resolution of this conflict assigns the operating decisions of the firm to stockholders and the financing decisions to bondholders. Financing decisions are then linked to operating decisions in a way that coalesces the welfare of bondholders and stockholders over the business cycle. Evidence from the nonfinancial business sector of the G-7 countries does not reject the predictions of the model.
Author: Randall K. Morck
Publisher: University of Chicago Press
ISBN: 0226536831
Category : Business & Economics
Languages : en
Pages : 700
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Book Description
For many Americans, capitalism is a dynamic engine of prosperity that rewards the bold, the daring, and the hardworking. But to many outside the United States, capitalism seems like an initiative that serves only to concentrate power and wealth in the hands of a few hereditary oligarchies. As A History of Corporate Governance around the World shows, neither conception is wrong. In this volume, some of the brightest minds in the field of economics present new empirical research that suggests that each side of the debate has something to offer the other. Free enterprise and well-developed financial systems are proven to produce growth in those countries that have them. But research also suggests that in some other capitalist countries, arrangements truly do concentrate corporate ownership in the hands of a few wealthy families. A History of Corporate Governance around the World provides historical studies of the patterns of corporate governance in several countries-including the large industrial economies of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States; larger developing economies like China and India; and alternative models like those of the Netherlands and Sweden.
Author: Robert Krainer
Publisher:
ISBN:
Category :
Languages : en
Pages : 49
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Book Description
Research in corporate governance indicates that the relational framework within which firms make business decisions is very different across countries and these differences might be important in explaining differences in real economic phenomena such as growth rates in real output. On the other hand, research in business cycles indicates that many of the stylized facts of business cycles, themselves the result of business decisions that corporate governance presumably influences, are qualitatively similar. The objective of this paper is to see in what ways business cycles are similar and in what ways they are different across the G-7 countries, and whether any differences are related to differences in corporate governance and ownership structures. This research finds that business cycles across the G-7 countries tend to be more similar when comparing economic relationships from the product market where competition and the macroeconomic environment seem all important. On the other hand, business cycles are less similar across the G-7 countries when comparing certain financial relationships, and in certain cases these differences are related to differences in corporate governance and ownership structures.
Author: Willi Semmler
Publisher: Routledge
ISBN: 1315288796
Category : Business & Economics
Languages : en
Pages : 274
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Book Description
As the 55th anniversary of the bank holiday of March 1933 approached, financial instability was a main topic in the financial press. Daily reports appeared of international debt crises, of the covert bankruptcy of deposit insurance, and of the near bankruptcy of one great financial institution after another. The great stock market crash of October 19 and 20, 1987, demonstrated that extreme instability can happen. It is generally asserted that the consequences of October 19th and 20th would have been disastrous if the Federal Reserve and Treasury interventions had not set things right. In 1933, financial markets in the United States and throughout the capitalist world collapsed. In the light of historical experience, the past 55 years are the anomaly. The papers collected in this volume come from various backgrounds and research paradigms. A common theme runs through these papers that makes the collection both interesting and important: The authors take seriously the obvious evidence that capitalist economies progress through time by lurching. Whether a particular study starts from household utility maximization or from the processes by which productive structures are reproduced and expanded, the authors are united in accepting the evidence that financial instability is a significant characteristic of modern capitalism.
Author: Yunguang Mike Yang
Publisher:
ISBN:
Category :
Languages : en
Pages : 47
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Book Description
While strong shareholder control benefits the firm by preventing Free-Cash-Flow problems in the good state of business cycles, it is costly to the firm in exacerbating the Conflict-of-Interest problem between shareholders and creditors in the bad state. Investigating how firm financial policies change within business cycles in firms with different degrees of shareholder rights, I find an array of significant and robust empirical evidences supporting the above hypotheses with respect to firm value, debt maturity, external financing, payout and investment policies. The economic effects of these agency conflicts are significant as well. Firms with stronger shareholder rights lose significantly more investment options from the good to the bad state in business cycles. While stronger shareholder rights are associated with better accounting and equity performance in the good state, the reverse is true in the bad state of business cycles. In addition, it does not seem that market fully recognizes these varying agency effects of shareholder rights over time. An investment strategy based on the alternating benefits and costs of shareholder rights earns a significant 9.2% annual abnormal return in business cycles. Moreover, the significant abnormal returns are not explained by the existing asset pricing models. Providing a comprehensive study on the policy and economic effects of shareholder control over business cycles, this paper suggests that strong shareholder rights in governance contracting have both benefits and costs due to their varying agency implications.
Author: Thomas F. Cooley
Publisher: Princeton University Press
ISBN: 9780691043234
Category : Business & Economics
Languages : en
Pages : 452
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Book Description
This introduction to modern business cycle theory uses a neoclassical growth framework to study the economic fluctuations associated with the business cycle. Presenting advances in dynamic economic theory and computational methods, it applies concepts to t
Author: Igor Filatotchev
Publisher: Edward Elgar Publishing
ISBN:
Category : Corporate governance
Languages : en
Pages : 312
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Book Description
This unique collection of new, previously unpublished chapters examines corporate governance and the various life cycle stages of firms and organizations. The role of the corporate governance life cycle in different industrial and institutional contexts is identified and reviewed, and crucial governance issues relating to the transition between stages are considered. This book will extend our understanding of governance issues beyond the narrow confines of economics and finance perspectives to embrace both learning and knowledge dimensions as well as contextual issues.
Author: Takeo Hoshi
Publisher: MIT Press
ISBN: 0262582481
Category : Business & Economics
Languages : en
Pages : 379
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Book Description
In this book, Takeo Hoshi and Anil Kashyap examine the history of the Japanese financial system, from its nineteenth-century beginnings through the collapse of the 1990s that concluded with sweeping reforms. Combining financial theory with new data and original case studies, they show why the Japanese financial system developed as it did and how its history affects its ongoing evolution. The authors describe four major periods within Japan's financial history and speculate on the fifth, into which Japan is now moving. Throughout, they focus on four questions: How do households hold their savings? How is business financing provided? What range of services do banks provide? And what is the nature and extent of bank involvement in the management of firms? The answers provide a framework for analyzing the history of the past 150 years, as well as implications of the just-completed reforms known as the "Japanese Big Bang." Hoshi and Kashyap show that the largely successful era of bank dominance in postwar Japan is over, largely because deregulation has exposed the banks to competition from capital markets and foreign competitors. The banks are destined to shrink as households change their savings patterns and their customers continue to migrate to new funding sources. Securities markets are set to re-emerge as central to corporate finance and governance.
Author: David Bourghelle
Publisher: Emerald Group Publishing
ISBN: 1801177880
Category : Business & Economics
Languages : en
Pages : 313
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Book Description
Rethinking Finance in the Face of New Challenges provides an overview of the new research perspectives devoted to financial activity, reconsidering the opposition between orthodox and heterodox schools of finance.
Author: Gerald F. Davis
Publisher: Oxford University Press
ISBN: 0199216614
Category : Business & Economics
Languages : en
Pages : 323
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Book Description
The turbulence of the stock market and the housing market in the early years of the 21st century have demonstrated the dangers of tying society too closely to financial markets. Managed by the Markets provides a guide to how we got here and unpacks the consequences of linking the well-being of society too closely to financial markets.
