In this paper, I examine the influence of the investment bank’s reputation on the price of underwriting services of Chinese firm. Based on a sample of offers from 2004-2015, the results show that prestigious investment banks charge higher fees. Furthermore, in comparison to big firms, prestigious investment banks charge more underwriting fees for small firms. In comparison to state-owned firms,...

ecause a large number of tourists come to  Mashhad, this city has a high potential for the development of tourism-related activities. Therefore, it is necessary to equip resources for tourism activities and investment in this regard. Despite the highest tourism potential in Mashhad, there are great opportunities for the tourism industry, which has not been fully identified and has not been made...

We solve the credit spread puzzle with a structural model of firms policies that endogenously replicates the empirical cross–section of credit spreads. Structural estimation of the model’s parameters reveals that the model cannot be rejected by the data, and that endogenous investment decisions are major determinants of CDS spreads. We also verify that controlling for financial leverage, CDS sp...

This study investigates the potential simultaneous relationships among leverage, debt maturity and cash holdings how these jointly affect financial policy firms' investment activities in developing countries of Thailand, Indonesia Singapore during period 2006–2015. Using two-step system GMM estimator, our results show that high-growth firms not only shorten to reduce underinvestment incentive, ...

We quantify the effects of lending and balance sheet channels on corporate investment during large crises in emerging markets. The depreciated currency creates investment opportunities in the tradable sector but firms might be financially constrained due to: 1) a deterioration of their balance sheet via un-hedged foreign currency debt (balance sheet channel) and 2) a decline in the supply of cr...

This paper attempts to address a puzzle in China’s investment pattern: despite high aggregate investment and remarkable economic growth, negative net investment is commonly found at the microeconomic level. Using a large firm-level dataset, we test three hypotheses to explain the existence and extent of negative investment in each ownership group: what we term the efficiency (or restructuring) ...

Applications of the real options approach hardly consider investment returns to be the result of competitive markets. The reason is probably that Dixit and Pindyck (1994, ch. 8) find that the investment triggers of firms in competitive markets are equal to those of firms with exclusive options. In this study, however, it is shown that this finding is restricted to markets in which assets have i...