Suchergebnisse

The edited volume on The Role of Institutional Investors in a Globalized Environment will publish original papers that examine various issues concerning the strategies of institutional investors, the role of institutional investors in corporate governance, their impact on local and international capital markets, as well as the emergence of sovereign and other asset management funds and their interactions with micro and macro economic and market environments including the impacts on international economic and market stability.

AbstractTo determine whether corporate international diversification leads firms to increase their leverage, we perform an event study that compares the leverage of corporations before and after they acquire foreign subsidiaries. We find that on average leverage increases from the first to the third year following the acquisition. When we examine the relation between additional debt financing after foreign acquisitions and the characteristics of these acquisitions, we find that in addition to such major determinants as size and profitability, debt financing is explained by geographical and industrial diversification effects.

AbstractThis paper replicates Export Development Corporation's (EDC) short‐term and medium‐/ long‐term country risk classifications on the basis of economic variables. Using a recursive partitioning algorithm, the results suggest that EDC's risk categories respond to some of the variables suggested by the theory and can be correctly predicted from a handful of publicly available economic information. Whatever the time horizon, the most important discriminators are external debt indicators, such as long‐term foreign debt, trend in the debt service ratio, and foreign debt rescheduling. Moreover, the findings suggest that EDC considers different factors to decide the amount of short‐term and medium‐/ long‐term exposure it is prepared to accept in a country.RésuméCet article reproduit les cotes de risque‐pays à court terme et à moyen/long terme de la Société pour l'Expansion des Exportations (SEE) du Canada. Les résultats suggèrent que les classes de risque de la SEE répondent à certaines des variables que la théorie économique a identifiées. En outre, il apparait que ces classes de risque peuvent ětre reproduites correctement à l'aide d'un nombre limité de variables économiques. Quel que soit l'horizon, les déterminants majeurs de ces cotes de risque sont des indicateurs de la dette externe, tels que la dette étrangère à long terme, la tendance dans le ratio du service de la dette et un rééchelonnement récent de la dette étrangère. Finalement, les résultats de cette recherche indiquent que la SEE considère differents facteurs pour décider des engagements à court terme et à moyen/long terme qu'elle est prěte à accepter dans un pays.

AbstractWe investigate the impact that the political connections of publicly traded firms have on their performance and financing decisions. Using a long‐term event study covering a sample of 234 politically connected firms headquartered in 12 developed and 11 developing countries from 1989 to 2003, we find that firms increase their performance and indebtedness after the establishment of a political connection. We also find that the political connection is more strongly associated with changes in leverage and operating performance for firms with closer ties to political power. Overall, our study confirms that politically connected firms gain easier access to credit and reap benefits in terms of performance from their ties with politicians.