Всего статей в данном разделе : 15
Опубликовано на портале: 14-06-2006Mihir A. Desai, C. Fritz Foley, James R. Hines Journal of Finance. 2004. Vol. 59. No. 6. P. 2451-2487.
This paper analyzes the capital structures of foreign affiliates and internal capital markets of multinational corporations. Ten percent higher local tax rates are associated with 2.8% higher debt/asset ratios, with internal borrowing being particularly sensitive to taxes. Multinational affiliates are financed with less external debt in countries with underdeveloped capital markets or weak creditor rights, reflecting significantly higher local borrowing costs. Instrumental variable analysis indicates that greater borrowing from parent companies substitutes for three-quarters of reduced external borrowing induced by capital market conditions. Multinational firms appear to employ internal capital markets opportunistically to overcome imperfections in external capital markets.
Опубликовано на портале: 14-06-2006Hyun-Han Shin, Rene M. Stulz Quarterly Journal of Economics. 1998. Vol. 113. No. 2. P. 531-552.
Using segment information from Compustat, we find that the investment by a segment of a diversified firm depends on the cash flow of the firm's other segments, but significantly less than it depends on its own cash flow. The investment by segments of highly diversified firms is less sensitive to their cash flow than the investment of comparable single-segment firms. The sensitivity of a segment's investment to the cash flow of other segments does not depend on whether its investment opportunities are better than those of the firm's other segments.
Опубликовано на портале: 21-06-2006Jeffrey MacIntosh Journal of Business Venturing. 2005. Vol. Volume 21. Issue 5. P. Pages 569-609.
In this paper, we examine a Canadian tax-driven venture capital vehicle known as the “Labour Sponsored Venture Capital Corporation” (LSVCC). As a theoretical matter, we suggest that the LSVCCs can be expected to have higher agency costs and lower profitability than private venture capital funds. We present data that is consistent with this view. The central question that we analyze, however, is whether the tax advantages conferred on LSVCCs have resulted in LSVCCs “crowding out,” or displacing other types of venture capital funds. Empirical analysis of our data (which covers the 1977–2001 period) is highly consistent with crowding out. The data suggest that crowding out has been sufficiently energetic as to lead to a reduction in the aggregate pool of venture capital in Canada, frustrating one of the key governmental goals underlying the LSVCC programs; namely, the expansion of the aggregate pool of capital. In the course of our analysis, we confirm the importance of macroeconomic factors (the performance of the stock market, real interest rates, and changes in real gross domestic product) in affecting the supply of and demand for venture capital. We also generate evidence that is consistent with the proposition that entrepreneurs in the market for venture capital prefer to incorporate their businesses federally, rather than provincially.
Опубликовано на портале: 14-06-2006Shenghui Tong, Ning Yixi Journal of Investing. 2004. Vol. 13. No. 4. P. 53-66.
The article studies the affect of capital structure on institutional investor choices. Institutional investors play a critical role in supervising the management of the companies. Most of the S&P 500 firms tend to have large institutional holdings. The finding of the study suggests that the capital structure influences stock picking choices of institutional investors. There is a negative relation between dividend yield and institutional ownership. There is limited evidence that institutional investors prefer firms with low debt ratios, high ratios of capital expenditures to assets, and high ratios of cash flow to sales.
Опубликовано на портале: 03-10-2003Douglas T. Breeden, Michael R. Gibbons, Robert H. Litzenberger Journal of Finance. 1989. Vol. 44. No. 2. P. 231-262.
The empirical implications of the consumption-oriented capital asset pricing model (CCAPM) are examined, and its performance is compared with a model based on the market portfolio. The CCAPM is estimated after adjusting for measurement problems associated with reported consumption data. The CCAPM is tested using betas based on both consumption and the portfolio having the maximum correlation with consumption. As predicted by the CCAPM, the market price of risk is significantly positive, and the estimate of the real interest rate is close to zero. The performances of the traditional CAPM and the CCAPM are about the same.
Опубликовано на портале: 14-06-2006Leonard L. Lundstrum Review of Quantitative Finance & Accounting. 2003. Vol. 21. No. 2. P. 141-156.
Examines how information problems between the firm and the investor affect the value of an internal capital market. Relation of the firm's access to an internal capital market to firm value; Asymmetric information and excess firm value.
Internal Capital Markets, Bank Borrowing, and Financing Constraints: Evidence from Belgian Firms [статья]
Опубликовано на портале: 14-06-2006Marc Deloof Journal of Business Finance & Accounting. 1998. Vol. 25. No. 7/8. P. 945-968.
Presents information on the interpretation regarding the Belgian firms belonging to a corporate group, where investment is incompletely financed on an internal capital market of the group. How many firms are indirectly controlled; Important role the holding companies and corporate groups play in the financing of Belgian firms; Reference to the tracing of origins of these networks.
Опубликовано на портале: 14-06-2006Julia Porter Liebeskind Organization Science. 2000. Vol. 11. No. 1. P. 58-77.
Diversification not only internalizes transactions of goods and services, but it also internalizes transactions of capital. Hence, the value of diversification will depend, inter alia, on whether internal capital markets are relatively efficient or inefficient. This essay reviews and discusses the possible benefits and costs of internal capital markets by conducting a careful comparative institutional analysis. The essay concludes that internal capital markets can add value to lines of business only under a limited number of circumstances. Some recent developments in the organization of internal capital markets in diversified firms can be understood as attempts to increase their efficiency.
Internal Capital Markets in Financial Conglomerates: Evidence from Small Bank Responses to Monetary Policy [статья]
Опубликовано на портале: 05-06-2006Murillo Campello Journal of Finance. 2002. Vol. 57. No. 6. P. 2773-2805.
This paper looks at internal capital markets in financial conglomerates by comparing the responses of small subsidiary and independent banks to monetary policy. I find that internal capital markets in financial conglomerates relax the credit constraints faced by smaller bank affiliates. Further analysis indicates that those markets lessen the impact of Fed policies on bank lending activity. The paper also examines the role of internal capital markets in influencing the investment allocation process of those conglomerates. My findings suggest that frictions between conglomerate headquarters and external capital markets are at the root of investment inefficiencies generated by internal capital markets.
Опубликовано на портале: 05-06-2006Adolfo De Motta Journal of Finance. 2003. Vol. 58. No. 3. P. 1193-1220.
Capital budgeting in multidivisional firms depends on the external assessment of the whole firm, as well as on headquarters' assessment of the divisions. While corporate headquarters may create value by directly monitoring divisions, the external assessment of the firm is a public good for division managers who, consequently, are tempted to free ride. As the number of divisions increases, the free-rider problem is aggravated, and internal capital markets substitute for external capital markets in the provision of managerial incentives. The analysis relates the value of diversification to characteristics of the firm, the industry, and the capital market.
Опубликовано на портале: 03-05-2005Emmanuel Saez NBER Working Paper Series. 2005. No. 9046.
This paper analyzes optimal progressive capital income taxation in an infinite horizon model where individuals differ only through their initial wealth. We show that, in that context, progressive taxation is a much more powerful and efficient tool to redistribute wealth than linear taxation on which previous literature has focused. We consider progressive capital income tax schedules taking a simple two-bracket form with an exemption bracket at the bottom and a single marginal tax rate above a time varying exemption threshold. Individuals are taxed until their wealth is reduced down to the exemption threshold. When the intertemportal elasticity of substitution is not too large and the top tail of the initial wealth distribution is infinite and thick enough, the optimal exemption threshold converges to a finite limit. As a result, the optimal tax system drives all the large fortunes down a finite level and produces a truncated long-run wealth distribution. A number of numerical simulations illustrate the theoretical result.
Опубликовано на портале: 05-06-2006Naveen Khanna, Sheri Tice Journal of Finance. 2001. Vol. 56. No. 4.
We examine capital expenditure decisions of discount firms in response to Wal-Mart's entry into their markets. Before Wal-Mart's entry, focused incumbents and discount divisions of diversified incumbents are similar in size, geographic dispersion, and firm debt levels. However, discount divisions of diversified firms are significantly more productive. After Wal-Mart's entry, diversified firms are quicker to either “exit” the discount business or “stay and fight.” Also, their capital expenditures are more sensitive to the productivity of their discount business. Internal capital markets function well, as transfers are away from the worsening discount divisions. It appears diversified firms make better investment decisions.
The Dark Side of Internal Capital Markets: Divisional Rent-Seeking and Inefficient Investment. [статья]
Опубликовано на портале: 05-06-2006David S. Scharfstein, Jeremy C. Stein Journal of Finance. 2000. Vol. 55. No. 6. P. 2537-2565.
We develop a two-tiered agency model that shows how rent-seeking behavior on the part of division managers can subvert the workings of an internal capital market. By rent-seeking, division managers can raise their bargaining power and extract greater overall compensation from the CEO. And because the CEO is herself an agent of outside investors, this extra compensation may take the form not of cash wages, but rather of preferential capital budgeting allocations. One interesting feature of our model is that it implies a kind of "socialism" in internal capital allocation, whereby weaker divisions get subsidized by stronger ones.
Опубликовано на портале: 03-11-2004Robert E. Hall American Economic Review. 2001. Vol. 91. No. 5. P. 1185-1202.
The value of a firm's securities measures the value of the firm's productive assets. If the assets include only capital goods and not a permanent monopoly franchise, the value of the securities measures the value of the capital. Finally, if the price of the capital can be measured or inferred, the quantity of capital is the value divided by the price. A standard model of adjustment costs enables the inference of the price of installed capital. Data from U.S. corporations over the past 50 years imply that corporations have formed large amounts of intangible capital, especially in the past decade.
When Do Incumbents Learn from Entrepreneurial Ventures? Corporate Venture Capital and Investing Firm Innovation Rates [статья]
Опубликовано на портале: 21-06-2006Michael Lenox Research Policy. 2005. Vol. Volume 34. Issue 5. P. Pages 615-639.
In this paper, we focus on the potential innovative benefits to previous corporate venture capital(CVC), i.e. equity investments in entrepreneurial ventures by incumbent firms. We propose that previous termcorporate venture capitalnext term programs may be instrumental in harvesting innovations from entrepreneurial ventures and thus an important part of a firm's overall innovation strategy. We hypothesize that these programs are especially effective in weak intellectual property (IP) regimes and when the firm has sufficient absorptive capacity. We analyze a large panel of public firms over a 20-year period and find that increases in previous termcorporate venture capitalnext term investments are associated with subsequent increases in firm patenting.