We analyze capital allocation in a conglomerate where divisional managers with uncertain abilities compete for promotion to CEO. A manager can sometimes gain by unobservably adding variance to divisional performance. Capital rationing can limit this distortion, increase productive efficiency, and allow the owner to make more accurate promotion decisions. Firms for which CEO talent is more impor...

The corrosion sensitivity of several austenitic stainless steels (316L, 316Ti, Sanicro28, Sanicro35) and nickel-based alloys (Hastelloy G30 Hastelloy G35) was determined at elevated temperatures in food grade phosphoric acid (FGPA). materials were submerged a harsh environment >85 wt% FGPA ranging from 80 to 160°C. main aim understand the phenomena occurring such define temperature range for wh...

Objective - This study aims to examine whether the condition of bankruptcy risk a company will influence market response capital expenditure. The main hypothesis this research is that positive reaction level expenditure issued be different in companies with high and low risk. Methodology/Technique was conducted on 56 large capitalization Indonesia Stock Exchange for 2018-2021. Findings results ...

This study investigates the relationship between gender diversity on board and dividend payouts in China using a large sample over period 2003–2017. Our results provide robust strong evidence showing that is positively associated with cash payments of dividends. The empirical outcomes confirm facilitates corporate governance subsequently promotes payouts. We demonstrate has greatest effect when...

We estimate the relation between union presence and executive compensation using a unique panel of executives in publicly listed US firms during the period 1992-2001. We find evidence that union presence is associated with lower levels of total executive compensation. We find this union effect to be primarily the result of substantially lower stock option awards, and to a lesser extent due to l...

This paper first examines various definitions of Kornai’s soft budget constraint (SBC) and the difficulties involved in interpreting data on losses, subsidies and financing, and then considers selective evidence from transition economies. Stocks of overdue trade credit are no larger than in Western economies and firms in transition economies (TEs) typically impose hard budget constraints on eac...

This paper investigates how a firm’s borrowing cost evolves as it ages. Using a new data set of more than 200,000 bank-dependent small firms for 1997-2002, we find the following. First, the distribution of borrowing costs tends to become less skewed to the right over time, which can be partially attributed to “selection” (i.e., exits of defaulting firms reduce the total borrowing costs), but is...

We examine the effect of corporate governance on the use of dividends and repurchases, composition of payout, and inclusion of a pre-commitment feature in the payout policy. We find that dividend payout is decreasing in governance quality. Corporate governance has a mixed effect on repurchases: good external governance prompts managers to repurchase more and to use repurchases as the only form ...

I develop a novel diagnostic procedure to estimate the associations between measurement errors of expected returns proxies and …rm characteristics. Application to GLS, a popular implementation of the implied cost of capital ("ICC"), yields the …rst direct empirical evidence that ICC measurement errors i) are persistent, ii) can be associated with …rms’risk or growth characteristics, and therefo...