We investigate how universal banking groups utilized information advantage at the initial public offerings (IPOs) in Japan over the period 2002-2012. We focus on the IPO issues of universal bank clients allocated by underwriters from the issuers’ main bank groups, competing commercial bank groups, and traditional investment bank groups. We find that the main bank underwriters do not advantage their

Prior literature examines the effects of both macroeconomic uncertainty and cyclicality (how strongly a firm's earnings is tied to macroeconomic conditions) on management and analyst earnings forecasts. However, these studies consider macroeconomic uncertainty and cyclicality independently and find conflicting results. This study argues that macroeconomic uncertainty and cyclicality are inextricably

Merger and acquisition (M&A) have become a foremost strategic alliance for business, product and geographic tactics in global market. Using meta-literature review, we conduct a synthesis analysis on M&A to assess motives, methods, financing sources, announcement effects, cross-border competitions, success-failure, valuation issues, and business strategies. We review 155 recent and relevant papers preferably

This paper investigates the relative importance of microfinance institutions (MFIs) at both the macro (financial development, economic growth, income inequality, and poverty) and micro levels (efficiency of traditional commercial banks). We observe a significant impact on most of the fronts. MFIs’ participation increases overall savings (total bank deposits) and credit allocation (loans to private

This paper investigates the role of microeconomic and macroeconomic factors on Italian bank risk taking, paying particular attention on the differences between cooperative and non-cooperative banks. The non-performing loan ratio is used as dimension of bank risk taking. The data refer to a large sample of financial institutions covering the 2001−2014 period. We then assess whether the impact of microeconomic

This paper examines the time and frequency co-movement between sovereign credit ratings and economic risk for five Balkan countries, namely Bulgaria, Greece, Croatia, Romania, and Slovenia, during the 1999Q1 to 2018Q4 period. To the best of knowledge, this is the first study attempt to conduct this nexus. We measured the sovereign credit scores by using the ratings and outlooks of Standard & Poor's

In this paper, we use administrative data covering Mexico’s formal labor market to investigate the employment effects of the Great Lockdown (GL). Our results show that the COVID-19 pandemic and lockdown caused Mexico’s formal sector to contract by 5% by November of 2020. By August, men’s jobs started to recover, while women’s jobs remain stagnant. We then document heterogeneous effects by age, income

The novel coronavirus (COVID-19) exposed individuals to a great uncertainty about its health and economic ramifications, especially in the early days and weeks of the outbreak. This study documents oil and gasoline market implications of individuals’ behavior upon such uncertainty by analyzing the relationship between Google search queries related to COVID-19—information search that reflects one's

The COVID-19 pandemic has inflicted an economic hardship unprecedented for the modern age. In this paper, we show that the health crisis and ensuing lockdown, came with an unseen shift in households’ economic sentiment. First, using a European dataset of country-level and regional internet searches, we document a substantial increase in people's business cycle related searches in the months following

Using U.S. Current Population Survey data, this paper compares the distributional impacts of the COVID-19 Pandemic Crisis and those of Global Financial Crisis in terms of (i) worker characteristics, (ii) job characteristics–“social” (where individuals interact to consume goods), “teleworkable” (where individuals have the option of working at home), and “essential” jobs (which were not subject to government

This paper evaluates and quantifies the short-term impact of the coronavirus disease of 2019 (COVID-19) on stock market performance in thirteen (13) African countries, using daily time series stock market data spanning 1st October 2019 to 30th June 2020. We employ a novel Bayesian structural time series approach (a state-space model) to estimate the relative effects of the COVID-19 pandemic on stock

The paper uses newly released Small Business Pulse Survey data on small business’ response to questions about overall COVID-19 impact, federal aid request, federal aid receipt, and subsequent changes in revenue and employee hours to evaluate the efficacy of three federal aid programs: Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL), and Small Business Administration (SBA) loan

We explore the effect of various factors on interstate differences in weekly unemployment insurance claims, focusing specifically on the determinants over the initial period of the pandemic in the U.S. We consider the effects of COVID-19 cases, state policies enacted in response to COVID-19, relevant provisions of Federal Coronavirus Aid, Relief and Economic Security (CARES) legislation, and the nature

Children constitute an important demographic for marketers. Driven by their insatiable hunger for profits, marketers are recklessly and relentlessly targeting the children with their actions and promotions. However, there are growing concerns and widespread criticisms associated with marketing to children. With the arguments for and against marketing to children polarized to extremes, the assessment

Based on the supply of stock market returns hypothesis, we argue that the unprecedented adverse shock of COVID-19 on the countries’ economic growth translates into a negative shock to the stock markets. According to the institutional theory, we also argue that the impact of COVID-19 in emerging countries is different from developed countries. Based on the overreaction hypothesis, we expect that the

The present study evaluates the hypothesis that countries where banks expand financial access through branches and ATM networks have smaller interest rate spreads. To do so, the financial access index produced by the International Monetary Fund was used to capture financial access through bank branches and ATMs (automated teller machines). Through a data panel analysis of 68 countries during the period

This paper examines the impacts of entry by Hainan Airlines (HA) to the U.S.-China air travel market, using user-reported data from Travelsuperlink.com. The sample consists of 15,773 round-trip economy-class fares for 39 routes purchased between 2010 and 2016. Our analysis indicates that, compared to other routes, the average airfare of the routes where HA entry occurs increases by up to 3.4 %. We

We explore the effect of home price appreciation on residential lending standards in the U.S. across different sample periods. Using housing supply elasticity measures as instrumental variables for home price changes, we find that rising home prices led to easing lending standards between 2001 and 2006. Mortgage acceptance rates increased more in MSAs that experienced higher home price appreciation

The pandemic of the COVID-19 virus originated from China in December 2019, and since then it has significantly affected the world’s economy and all sectors of life. This review will highlight the impact of COVID-19 on entrepreneurship. Due to preventive measures taken by governments to limit virus transmission, there was a prodigious disruption socially and economically to entrepreneurship, at different

ARTICLE DETAILS ABSTRACT History: Accepted: 08 May 2020 Available Online: 15 June 2020 This study examine the most debatable question of the last three decade, i.e., “Does the agriculture growth affect the economic growth?” with the use of annually data from 1966-to 2016. The study employed unit root and causality test suggested by the Dicky fuller, Phillips-Perron and Granger respectively. Besides

Abstract In this study, using a unique firm-level survey database, I investigate innovation for privatized former state-owned enterprises (SOEs) versus originally private firms (private at inception) in 30 Eastern European and Central Asian (ECA) countries. Besides using an invention-based narrow definition of innovation, I use an imitation and adaptation-based broad definition of innovation. I find

Abstract This paper develops a theoretical model of financing with informational feedback effect that jointly determines a firm's capital structure and cost of capital. We show that under some conditions capital structure affects traders’ incentives to produce information about the prospect of the firm which they then use to trade in its securities. On one hand, informed trades incorporate new information

Abstract This paper examines the roles of jumps in the time series of Real Estate Investment Trust (REIT) returns. Using measures of the quadratic variation of high-frequency REIT returns, it documents evidence of jumps in the returns and volatility of returns. Evidence of persistence in the occurrence of jumps is also uncovered. Motivated by these findings, the paper also examines whether a set of

Abstract This short paper provides a rigorous definition for the assertion “an increase of uncertainty harms investment” within the real-options framework. In most cases, the effect of uncertainty on investment depends on the time-horizon considered. For typical parameter configurations, more uncertainty favors investment in the short-run.

Abstract This paper uses administrative panel micro-data of Israeli firms between 2006 and 2015 to simulate corporate tax rates at Laffer Curve's peak. We first propose a theoretical model where three effects interact: a mechanical effect, a dynamic effect - related to opening and closing firms - and an efficiency effect related to profits. We run regressions for opening and closing firms, and for

Patent examiners, who are often accused of granting questionable patents, might lack proper incentives to carefully scrutinize applications. Furthermore, they have outside options and leave the patent office. It is thus interesting to investigate whether their granting behavior is affected by career concerns. In a simple setting, we analyze different incentive schemes that reward examiners on the basis

Abstract Initial Coin Offerings (ICOs) are unregulated offerings of digital tokens on the Internet, built on the blockchain technology, as to provide a means to collect finance for a project, disintermediating any external platform, payment agent or professional investor. ICO proponents are usually teams made up by entrepreneurs, professionals, technicians and managers, eventually assisted by an advisory

Abstract This paper investigates whether firms with more effective boards have lower firm risk. We show a strong negative relationship between board effectiveness (BSCI ratings) and firm risk. Furthermore, we show that several individual components of board effectiveness are negative and statistically related to firm risk. In particular, board independence, board structure, board system and board decision-making

Abstract The Pre-Commitment Approach (PCA) to capital requirements was developed and promoted by the US Federal Reserve in the 1990s. The proposal was conceived as an alternative to the market-risk capital requirements based on internal models then under discussion, and eventually adopted, by the Basel Committee. Notwithstanding the Fed continued to support the PCA, the idea was abandoned, probably

Abstract Firms hold excess resources, known as slack, that could be valuable as the environment becomes more complex. This article provides evidence on how higher environmental complexity alters the slack-performance relationship in the long run by introducing three types of effects: the efficiency effect, the profitability effect, and the incentives effect. After measuring those effects on a panel

Abstract While capital structure is usually presented in the context of a choice between debt and equity, even within these choices we observe different sources of capital, especially related to debt. Recent studies have arrived at differing conclusions regarding the reliance upon different sources for capital and regarding the importance of those sources. We find that the complexity of capital structure

Abstract This paper investigates the international transmission of various sources of uncertainty between the financial sector and the real economy. I focus on calibrating a two-country DGSE model with an international financial exposure in the banking sector for the Euro Area (EA) and the United States (US). In particular, the model studies the transmission mechanism of macroeconomic, monetary policy

Abstract Th