Does a Parent-Subsidiary Structure Enhance Financing Flexibility?

Does a Parent–Subsidiary Structure Enhance Financing Flexibility?

I examine whether firms exploit a publicly traded parent–subsidiary structure to issue equity of the overvalued firm regardless of which firm needs funds, and whether this conveys opposite information about firm values. Using 90 subsidiary and 37 parent seasoned equity offering (SEO) announcements during 1981–2002, I document negative returns to issuers but insignificant returns to nonissuers i...

Does flexibility enhance risk tolerance?

The optimal decision under risk depends upon the ability of the decision makers to adapt their actions to the state of nature ex post. We examine two choice problems, one in which agents select their action ex post, and one in which they must commit on their action ex ante. Contrary to the intuition, it is not true in general that agents are more tolerant to risk in the flexible context than in...

Health Financing: Does Governance Quality Matter?

This paper contributes to the existing literature by examining the determinants of health financing in 177 developed and developing countries. The study introduces the variables of government effectiveness and control of corruption to capture the impact of governance quality on different mechanisms of health financing. Utilizing panel data analysis, namely system-GMM estimators, to obtain unbia...

Health Financing: Does Governance Quality Matter?

Abstract T his paper contributes to the existing literature by examining the determinants of health financing in 177 developed and developing countries. The study introduces the variables of government effectiveness and control of corruption to capture the impact of governance quality on different mechanisms of health financing. Utilisng panel data analysis, namely system...

Diversifying experiences enhance cognitive flexibility