We study firms’ incentives to acquire private information in a setting where subsequent competition leads to firms’ later signaling their private information to rivals. Due to signaling, equilibrium prices are distorted, and so while firms benefit from obtaining more precise private information, the value of information is reduced by the price distortion. Thus, compared with firms that do not a...

This paper talks about the measurement of efficiency and productivity of non-life insurance firms in India. This study is focused on twelve private non-life insurance firms and four public sector non-life insurance firms of India in the period 2008-09 to 2012-13. Data Envelopment Analysis (DEA) coupled with Malmquist productivity Index is used in measuring the efficiency as well as productivity...

We examine the participation of public and private firms in merger waves and productivity outcomes. We show that public firms participate more than private firms as buyers and sellers of assets and their participation is more cyclical. Public firms are affected more by credit spreads and aggregate market valuation. Public firm transactions are also impacted positively by their stock market valu...

We empirically examine the impact of flotation costs, agency conflicts, regulation, and information asymmetries on a firm’s mix between public and private debt. Results indicate that firms with larger issue sizes exploit the scale economies in flotation costs of public debt. Firms with higher contracting costs due to moral hazard have higher proportions of private debt. There is only limited su...

We analyze the determinants of environmental policy when two firms engage in two types of lobbying against a restriction on allowed pollution: General lobbying increases the total amount of allowed pollution, which is beneficial for both firms. Private lobbying increases the individual pollution standard of the lobbying firm, but has a negative or zero effect on the allowed emissions of the com...

Using hand-collected data, we study the evolution, causes, and economic effects of the pyramidal ownership structure in China’s listed firms over 2001-2008. We quantitatively characterize the use of pyramidal structure by private firms and local state controlled firms. We find that private owners in China show strong incentives to build more extensive pyramids in weak institutional environments...

The consequences of occupational licensing regulations on the private security market are examined. Analysis suggests that these regulations impact the number of private security firms in a state, the distribution of firm size, and the average wage of private security employees. Regulations imposed in some states reduce the number of private security firms, increase the size of firms, and raise...