Based on industry-level data for majority-owned U.S. foreign affiliates in 49 countries, this paper identifies the determinants of the cross-country distribution of fixed capital within multinational companies. Controlling for market size and trade openness, it is shown that U.S.-owned capital stocks are high in countries with a history of high profitability and low earnings variability. Simila...

The market value of residential lot size and market response to increasing housing prices have become increasingly important as regional policy makers have sought to limit the size of urban areas. Using sales data on recently constructed homes in the Portland Metro area for the years 1996-97, we have examined the effect of lot size on the sales price of detached and attached single family homes...

The Anatomy of Fluctuations in Book/Market Ratios We analyze trading activity accompanying equities' year-to-year switches from " growth " (low book-to-market ratios) to " value " (high book-to-market ratios), and vice versa. We find that a large book/market ratio increase, i.e., a shift from growth to value, is accompanied by a strongly negative small-trade order imbalance. Large-trade imbalan...

We study the implications of credit market frictions for the dynamics of corporate capital structure and the risk of default of corporations. To do so, we develop a dynamic capital structure model in which firms face uncertainty regarding their ability to raise funds in credit markets and have to search for investors when seeking to adjust their capital structure. We provide a general analysis ...

We develop a tractable two-country overlapping generations model and show analytically that the cross-country differences in financial development help explain three recent empirical facts characterizing international capital flows: financial capital flows from relatively poor to relatively rich countries while FDI flows in the opposite direction; net capital flows are from poor to rich countri...

the main purpose of this paper is to apply of islamic transactions rules on iran capital market contracts by studying the economic actions of the individuals in tehran stock market. based on the theories of four major islamic laws, i.e., no damage rule, gaining from invalid activities rule, peril rule and usury rule; the basic islamic assumptions is drawn in order to testify in the capital mark...

This study provides new estimates of systematic risk and the cost of equity capital for the pharmaceutical, biotechnology, and medical device sectors using data for firms with publicly-traded stock on U.S. exchanges during 2001-2005 and 2006-2008. Two frameworks are employed for estimating firms’ risk and the cost of equity capital: (1) the capital asset pricing model, and (2) the Fama-French t...

In this paper, the nominal wage equation of a Core-Periphery model of New Economic Geography is derived. In order to show empirical evidence of the resulting hypothesis, the nominal wage equation is estimated for the Spanish provinces in the year 2003. Our results illustrate that the market access variable is statistically significant and quantitatively important in the explanation of the spati...