Essays on Corporate Finance and Social Capital
Author : Omar Al-Bataineh
Publisher :
Page : pages
File Size : 11,10 MB
Release : 2022
Category :
ISBN :
Corporate Social Capital and Liability
Author : Roger Th.A.J. Leenders
Publisher : Springer Science & Business Media
Page : 559 pages
File Size : 10,89 MB
Release : 2013-03-09
Category : Business & Economics
ISBN : 1461550270
Book Description
In studies of inter-organizational relations (lOR's), there is a tendency to look at dyads of flrms, and to consider networks as aggregates of such dyads. But there are several roles for a third party; a go-between. This chapter looks at a go-between not in the sense of a middleman who intermediates in existing production or trade, such as an agent, wholesaler, retailer, and not in the sense of an entrepreneur who intermediates in the realization of new potential in connecting supply and demand. It looks at a go between in the sense of a relationship counsellor for the development and maintenance of social capital; providing support in setting up, adapting and ending cooperative relations between others. Or, in yet different terms: to help in the embedding of relati ons, in Granovetter's (1985) sense (Uzzi 1997a). Such roles may be performed by middlemen or entrepreneurs, but also by specialized agents who do not playa direct role in linking stages in a chain of production and distribution, as middlemen and entrepreneurs typically do. Indeed, some of the roles require an independence that is served by not having a direct stake in the relations that need to be developed. I propose that the analysis yields a perspective for looking at the roles of trade and industry associations in European business systems, and of banks and trading houses in Japanese enterprise groups (Kigyo Shudan).
Essays on Networks and Corporate Finance
Author : Tatiana Igorevna Salikhova
Publisher :
Page : 296 pages
File Size : 23,81 MB
Release : 2019
Category : Business networks
ISBN :
Book Description
In my dissertation I explore how personal networks affect firms' financial decisions. In the first essay, I study how social connections among divisional managers affect the capital allocation to divisions in diversified conglomerates. In contrast to the previous studies, I focus on the horizontal connections or connections formed among managers of the same level of corporate hierarchy. I show that connections among divisional managers lead to higher sensitivity of segment capital spending to segment's growth opportunities, higher firm-level allocation efficiency and higher firm value. Additionally, firms tend to strategically assign better-connected managers to these segments, and connections help to reduce internal information asymmetry. The results are consistent with the idea that connections facilitate interdivisional cooperation and better alignment of divisional and firm's incentives. In the second essay, I examine capital structure decisions of suppliers with social connections to major customers, which invest in relation-specific assets. Suppliers connected to major customers with relation-specific assets have higher debt ratios. The effect is more pronounced when intensity and duration of business relationship is high, and when information asymmetry between parties is high. In addition, building up debt helps suppliers to reduce underleverage and move faster toward target leverage ratios. Overall, the results are consistent with the view that connections help to strengthen implicit contracts through establishing trust between trading parties. In the third essay, I study the effect of divisional manager-CEO social connections on the scale and success of corporate innovation activities. Divisional managers who previously worked or studied with CEO file a greater number of patents during their tenure at the segment. These patents receive more citations in future and represent a greater scientific and economic value. These findings can imply that socials connections help to mitigate adverse selection problems associated with R&D investments.
Social Capital, Corporate Social Responsibility, Economic Behaviour and Performance
Author : L. Sacconi
Publisher : Springer
Page : 393 pages
File Size : 37,70 MB
Release : 2010-12-13
Category : Business & Economics
ISBN : 0230306187
Book Description
This book focuses on the concepts of social capital, corporate social responsibility, and economic development in relation to economic theory of institutions and behavioural economics. It also takes a macroeconomic and empirical approach, on the relationship between social capital, ethical behaviour and economic development.
ESSAYS IN EMPIRICAL CORPORATE FINANCE
Author : Yinge Zhang
Publisher :
Page : 0 pages
File Size : 49,14 MB
Release : 2022
Category :
ISBN :
Book Description
This dissertation consists of three chapters. First two chapters examines how nonprofit organizations (NPOs) react to the state level minimum wage increases, and the third chapter studies the effect of board interlock on the diffusion of innovation.In the first chapter, I investigate the impact of minimum wage increases on employment. I extend the literature by hypothesizing and showing a differential impact of state-level minimum wage increases on nonprofit organizations relative to for-profit organizations. While I find that increases in minimum wages reduce employment growth in both types of organizations, this decrease is substantially larger for nonprofit organizations. I also find that investment in automation, i.e., information technology, rises in nonprofits post minimum wage increase, consistent with the substitution of capital for labor. Minimum wage increases also increase the likelihood of nonprofit exit. In the second chapter, I investigate how CEO pay in nonprofit organizations responds to an exogeneous increase in labor cost resulting from state-level minimum wage hikes. I find that these increases in labor cost, which constrain budgets, are followed by declines in the total pay of NPO CEOs. In contrast, I do not find an impact on CEO pay in for-profit companies. I attribute the differential response between NPO and for-profit organizations to NPO CEOs acting as stewards of the NPO, whereby they are willing to take less to ensure the continued existence of the enterprise, as well as fulfillment of its mission. This phenomenon has previously been observed in the nonprofit sector and termed labor donation, whereby individuals who work for NPOs are intrinsically motivated and consequently, are willing to work for less money. Cross-sectionally I find the declines in compensation are larger in NPOs headquartered in smaller counties, in counties with higher levels of religiosity, and in counties with greater levels of social capital, and in NPOs that are run by their founders. In the last chapter, I propose that board interlocks can act as a channel of information transmission and social learning, hence enhancing the diffusion of innovation among firms. I find that a firm's patents are more likely to be cited by patents from firms that have common directors (i.e., interlocked firm). The result is robust under a difference-in-differences setting, where the death or retirement of interlocking directors is used as an exogeneous shock to board interlock. The effect is more pronounced for interlocking directors who have longer experience in R&D-intensive industries, have a larger network, and have a higher compensation delta. While I find that board interlock enhances the diffusion of innovation across industries, it has no effect on within-industry knowledge diffusion. Finally, I document that board interlock enhances firms' overall innovation output, measured by patent counts and citation counts per patent. The paper sheds light on an important role played by board of directors in promoting knowledge spillover and innovation.
Money and Capital in Online Exchange Communities. an Essay on Coining New Finance
Author : Georges de Redmont
Publisher : Logos Verlag Berlin GmbH
Page : 126 pages
File Size : 36,80 MB
Release : 2013
Category : Business & Economics
ISBN : 3832534040
Book Description
This book is about new financial instruments that serve corporate capital investment and social or impact investment. Due to their cost efficiency, these financial tools make green and/or clean tech investment more affordable to medium sized and even smaller companies. Based on novel microeconomic theory that is derived from consistent arithmetic axioms and theorems, above new corporate finance has been specifically designed as an online digital currency and asset value.
The Strategic Value of Social Capital
Author : Francesca Masciarelli
Publisher : Edward Elgar Publishing
Page : 191 pages
File Size : 19,22 MB
Release : 2011
Category : Business & Economics
ISBN : 0857936433
Book Description
This is an outstanding book by an outstanding scholar. This is the first book to really explain what social capital means and how and why firms generate value and profit from social capital. The author combines a rigorous approach to empirical evidence in support of her arguments with new theoretical insights. This is a "must read" for all those concerned with firm competitiveness, knowledge acquisition and social capital theory.' - Michael G. Hobday, University of Sussex, UK This groundbreaking book explores whether, how and why firms may generate value from social assets. Based on original empirical evidence, this is the first book that systematically integrates different approaches to social capital and develops a new and more comprehensive framework that relates social capital to various firm's strategies. The author delves deeply into the nature, dimensions and dynamics of social capital deploying research and analytical techniques from a wide variety of disciplines including, the theory of the firm, entrepreneurship, regional studies, strategic management, international business and innovation studies. Francesca Masciarelli provides insights into a new multilevel configuration of social capital and supports this with an abundance of empirical evidence.
Essays on Corporate Finance and Disclosure
Author : Brian Gibbons
Publisher :
Page : pages
File Size : 39,76 MB
Release : 2021
Category :
ISBN :
Book Description
This dissertation contains three essays. In the first essay, I document that disclosure of financially immaterial environmental and social (E&S) information has material effects on firms' investment and financing decisions using the staggered introduction of 87 country-level regulations that mandate firms report such information. Firms domiciled in countries that mandate E&S transparency increase R&D expenditures and patenting activity after disclosing. Transparent non-financial disclosure reduces financing frictions, resulting in more innovation for equity-dependent firms and increased reliance on external equity. It also improves shareholders' contracting and monitoring abilities, incentivizing managers to invest in innovation. Fixed capital investment, which is less sensitive to information frictions, does not change following E&S disclosure. Additionally, I only observe changes to investment and financing decisions when E&S disclosure is mandatory--highlighting the unique value of consistent and comparable disclosure. In the second essay, I study venture capital firms (VCs) use of public market information and how attention to this information relates to their private market investment outcomes. I link web traffic to public disclosure filings hosted on the Security and Exchange Commission's (SEC's) EDGAR server to individual VCs. VCs analyze public information before most deals. An increase in EDGAR filing views relates positively to the probability of an exit through acquisition, suggesting that public information helps identify paths to acquisition. The effect is stronger when the VC has less access to private information. I conclude that policymakers should consider spillover effects on private markets when setting public disclosure requirements. In the third essay, we identify analysts' information acquisition patterns by linking EDGAR server activity to analysts' brokerage houses. Analysts rely on EDGAR in 24% of their estimate updates, with an average of eight filings viewed. We document that analysts' attention to public disclosure is driven by the demand for information and the analysts' incentives and career concerns. We find that information acquisition via EDGAR is associated with a significant reduction in analysts' forecasting error relative to their peers. This relationship is likewise present when we focus on the intensity of analyst research. Attention to public information further enables analysts to provide forecasts for more time periods and more financial metrics. Informed recommendation updates are associated with substantial and persistent abnormal returns, even when the analyst accesses historical filings. Analysts' use of EDGAR is associated with longer and more informative analyses within recommendation reports.
Three Essays on the Influence of National Culture on Corporate Finance
Author : Vipin Mogha
Publisher :
Page : 0 pages
File Size : 35,37 MB
Release : 2020
Category :
ISBN :
Book Description
The premises of this doctoral dissertation is investigating the role played by national culture on corporate financial choices and outcomes. The investigation is done through three empirical essays. The first essay analyzes the influence of national culture on firms' capital structure choices. The second essay is analyzing the role played by national culture on firms extending more or less trade credit from pre-to-post the mortgage financial crisis. The third essay analyzes the influence of national culture on firms' market value. Furthermore, a chapter of theoretical conceptualization is done to fit these empirical essays work into a mathematical topology framework. This doctoral dissertation work finds itself at the junction of three broad sets of research bodies. These are the literature around the New Institutional Economics (NIE), the finance literature, and the social economics literature. We glue these literature sets together through the general mathematical topology framework to structure our culture and finance research. Chapter 2 introduces these literature sets and describes the foundations of our three essays.Chapter 3 (essay one) presents the analysis of the links between national culture and firms financing choices leading to their capital structure. Chapter 4 (essay two) presents the analysis of culture's influence on firm's choice of extending higher or lower trade credit from pre-to-post the 2008 mortgage financial crisis. Chapter 5 (essay three) presents how firms' financial value maybe influenced national cultural values.National culture is defined as the firm's country-of-origin cultural values. We represent it by four of Hofstede (1980, 2001) six cultural dimensions of individualism, masculinity, uncertainty avoidance, and long-term orientation. Hofstede national culture dimensions are largely applied in the growing culture and finance literature, thus providing strong empirically validity. Our choice of Hofstede dimensions are described in chapter 2.We apply these cultural dimensions in our three essays. Our empirical analysis is build following the New Institutional Economics framework (Williamson, 2000). This framework is the key structure around which we are able to build the theoretical bodies of our three essays. NIE has popularized the understanding and acceptance of the non-financial constraints -in macro-and-micro economics- of the social embeddedness level of culture. We empirically test the hypotheses in our three essays following Williamson NIE framework. The empirical tests are done on samples of listed firms from over 30 countries. These tests provide a broad applicability of our results to firms in the globalized economy. The results of our three essays meet our hypotheses expectations of culture's influence on firms' financial choices and outcomes.The results provide all stakeholders a lens to view and analyze corporate financial choices and outcomes through firms' national culture values. Indeed, the financial numbers one may read may have different meaning depending on firm's country-of-origin cultural values. This understanding would have multiple implications for investors, creditors, managers, shareholders, and policy makers. It may help them in their investing, lending, financing, returns expectations, and policy design to optimize their profits.
Creation and Returns of Social Capital
Author : Henk Flap
Publisher : Routledge
Page : 405 pages
File Size : 38,93 MB
Release : 2004-08-02
Category : Social Science
ISBN : 1134495145
Book Description
The idea of a social capital research program has become increasingly significant within the social sciences. This collection of essays contributes to a theoretical integration as well as standardization of measurement instruments and co-ordination of empirical research on the significance of social capital.
