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The Role of Firm Dynamics in Wage Determination

The bulk of the literature on wage determination is aimed at identifying the relative contribution of various determinants of variation in wages across workers. Most attention has focused on the role of individual-specific heterogeneity. Wages have also been found to vary with firm-specific characteristics, although less research has been conducted on this component of wage determination.

Firm Dynamics, Markup Variations, and the Business Cycle

This paper analyzes how the interaction between firms entry and exit decisions and variation in competition gives rise to endogenous procyclical movements in measured total factor productivity (TFP). Three basic stylized facts motivate this paper: the existence of monopoly power in the U.S. economy; procyclical variations in the number of competitors; and markups being counter cyclical and negatively correlated with the number of competitors.

Conservation Contracts under Asymmetric Information

The partial or complete delegation of management responsibilities for publicly owned forests, grazing lands, fisheries and other natural resources from public agencies to private decision makers is an increasingly popular approach taken by some governments to manage resources more efficiently.

Does Stock Market Liquidity Matter? Evidence from Seasoned Equity Offerings

Should a firm have any interest in the market liquidity of its securities? This question is central in much of the research in market microstructure. Previous studies have tried to answer this question by relating liquidity to the firm's cost of capital. However, the empirical evidence to date on this issue is somewhat mixed. This paper takes a different approach to test whether liquidity matters to the firm by examining an event that links liquidity to an easily observable component of the firm's cash flows.

Market-based Mechanisms of Corporate Governance and Regulatory Environment: Complements or Substitutes?

Accounting information is the basis for communicating financial performance to the market place. As such, it continues to be open to opportunistic behavior on the part of managers by means of earnings management. Typically, this opportunistic behavior involves using discretion allowed under Generally Accepted Accounting Principles (GAAP), managing earnings to obtain desirable outcomes, without breaking the law.

Strategies for Improving Access to Comprehensive Obesity Prevention

This policy brief builds on our prior work for the Robert Wood Johnson Foundation. In 2005, The George Washington University School of Public Health and Health Services (GW) evaluated the role of public and private insurance in financing preventive care and treatment for at-risk and obese children.

What To Eat? Goal-Conflict Theory and Weight Maintenance

It is rare to find an individual who has not at some point been unhappy with his or her body. Who hasn't stood in front of the mirror and critiqued his or her appearance? It is becoming commonplace to see individuals comparing nutrition labels in the grocery store and opting for the low-fat, no-fat options. Commercials for weight loss products and programs abound. Weight is obviously on the collective mind of the public.

Debt Maturity Structure and Earnings Management

In their discussion of the classic agency problem Jensen and Meckling (1976) note that although the introduction of debt in the capital structure of the firm presents a new set of agency problems, the existence of debt helps to mitigate the agency costs of equity. Jensen (1980) discusses the reduction in equity-related agency costs brought about by the elimination of free cash flow resulting from an increase in the relative amount of debt financing. Additionally, certain types of lenders (e. g. , banks) may provide a monitoring function for their borrowers, thereby further reducing the agency costs of equity.

Information in Accruals about the Quality of Earnings

This paper provides a systematic examination of the source of information in accruals about earnings quality. Our work extends work in Sloan (1996) demonstrating that high levels of accruals are a leading indicator of deterioration in earnings and stock returns. We extend Sloan's analysis in several ways. First, we extend the analysis of accruals from the subset of accruals considered by Sloan to include all accruals relating to firms operating activities.

Information Capital, Firm Dynamics and Macroeconomic Performance

In the last decade we have witnessed episodes of successful and unsuccessful speculative attacks on domestic currencies, especially in emerging economies. Interestingly, in some of these episodes we observed that these economies entered long recessions even when the attacks were unsuccessful and confidence was recovered swiftly. The aftermath of these episodes was generally characterized by financial distress, particularly for small firms (most of which are dependenton banks for financing investments).

Dynamics of Asymmetric Information and Capital Structure

In this study, I propose a model of financing decisions in an environment with dynamic asymmetric information. In this setting, the choice of security depends not only on the current adverse selection cost of the security but also on the future information environment and future financing needs of the firm. When managers anticipate an increase in the asymmetric information, even though they have private information at present, managers may choose to issue equity. The goal is to determine the optimal sequence of securities as a function of the size and dynamics of the asymmetric information advantage that insiders of the firm have with respect to outside investors.

Employee Stock Options in Compensation Agreements: A Financing Explanation

Stock options are often used as part of a compensation package offered to the employees of a firm. The use of stock options as part of compensation is usually justified on the basis of providing incentives to employees in terms of increased compensation when shareholder wealth grows (i.e., the stock price increases). In this way, employees are enticed to act in the interests of owners to increase the value of the firm since their own wealth increases at the same time.

Financing Constraints, Export Decisions, and Aggregate productivity

This paper develops a dynamic industry model with heterogeneous firms in order to analyse how firm-specific financing frictions affect export decisions and industry dynamics. The predictions of the model are verified empirically with a large panel of Italian manufacturing firms for the period 1995-2003. This panel contains detailed information on the trade policies of firms and on their self declared financing constraints.

Bank Control, Capital Allocation, and Economic Performance

Economic growth is highly correlated with financial development. Financial systems, in turn, are more developed where corruption and the returns to political rent-seeking are less (La Porta & et al. 1997; La Porta 2000; La Porta & et al. 2002; La Porta et al. 2006, 2008). Financial development is neither inevitable nor irreversible. Many countries never sustained dynamic financial systems and, more surprisingly, many that once did ceased doing so (Rajan & Zingales 2003).

Capital Flows to Developing Countries: The Allocation Puzzle

The role of international capital flows in economic development raises important open questions. In particular, the question asked by Robert Lucasalmost twenty years ago—why so little capital flows from rich to poor countries—received renewed interest as capital has been flowing "upstream" from developing countries to the U.S. since 2000. This paper takes a fresh look at the pattern of capital flows to developing countries through the lenses of the neoclassical growth model.

The Value of Active Mutual Fund Management: An Examination of the Stock holdings and Trades of Fund Managers

Over $5.5 trillion are currently managed by the U.S. mutual fund industry, with roughly $3 trillion managed in equity funds. A significant portion of this amount is actively managed by money managers who presumably rely on superior stock-selection skills to outperform passive strategies. Several billion dollars per year are expended by these active fund managers in pursuit of under priced stocks, well in excess of the amount that is typically expended by their passive, index-fund counterparts.

Do hedge funds exhibit performance persistence? A new approach

In selecting a hedge fund for investment, is it helpful to consult the manager's prior performance record? If past performance is indicative of future results, there is value to investors in this information. If not, then investors may be better off selecting a manager based on his reputation, investment style, or trading costs. Recent research regarding this issue finds consistent results: there is some evidence of short term (one to three month) persistence among individual hedge funds. (See Agarwal and Naik (1999, 2000), Bares, Gibson, and Gyger (2002), and Baquero, ter Horst, and Verbeek (2002)). This persistence is not driven by the existence of survivorship bias. At longer time horizons (semiannual or beyond), however, persistence largely disappears; see e.g., Brown, Goetzmann, and Ibbotson (1999), and Brown and Goetzmann (2001).

Venture Capitalists versus Angels: The Dynamics of Private Firm Financing Contracts

It is well known that angel financing is an important source of financing for private firms in the United States. However, beyond the fact that the annual amount of angel financing is much larger than that of venture capital financing, and that angels tend to be individuals who invest much smaller amounts than venture capitalists in individual firms, little is known about the important economic differences between venture capital and angel financing.

Syndication in Venture Capital Financing

Previous researchers consider the benefits associated with alternative organizational arrangements. Syndication is an organizational arrangement common to the venture capital industry. In a syndicated investment multiple venture capital (VC) firms make investments in a firm simultaneously. Syndication has been the subject of relatively little empirical examination.

Entrepreneurial Risk, Investment and Innovation

This paper analyses the effect of uncertainty on entrepreneurial risky innovation. Entrepreneurial households account fora large share of aggregate consumption and output. Moreover, they are likely responsible fora substantial portion of productivity and employment growth. Among the factors that affect entrepreneurial activity, are cent literature has emphasized the importance of capital market imperfections. In particular, several authors have argued that borrowing constraints may prevent skilled individuals from starting an entrepreneurial activity, and constrain the growth of entrepreneurial businesses (see Quadrini, 2000, and Cagetti and De Nardi, 2006, among others).

Financial Constraints and Investment Efficiency: Internal Capital Allocation across the Business Cycle

This article examines whether the efficiency of internal capital markets of diversified firms is affected by their ability to raise capital. Unlike focused firms, conglomerates have the opportunity to reallocate a given amount of capital between different investment projects avoiding the frictions of external capital markets.

Acute and Chronic Pain in the Elderly

Pain is defined by The International Association for the Study of Pain as an unpleasant sensory and emotional experience associated with actual or potential tissue damage, or described in terms of such damage. In the elderly many complex issues may contribute to the emotional experience of pain including: a long history of various pain experiences, multiple chronic comorbid conditions, proximity to death, dependency issues and family support issues.

Medications for Persistent Pain

Pain at any age is not good for anything except as a warning signal that something is wrong. Once that alarm goes off, pain should not be tolerated as just a part of "growing older." Your health care provider can evaluate your pain and determine the right treatment to relieve your pain. Your health care provider will ask questions or observe your condition to understand your pain.

Entrepreneurial Teams, Optimal Team Size, and Founder Exits

Recent studies suggest that continuous innovative change leads to knowledge accumulation and complexity of knowledge, and this causes individuals to opt for specialisation in knowledge (Jones, 2009). As a result, innovation has become task of specialised individuals (Audretsch, 1995; Jones, 2009; Wuchtyetal., 2007). Team formation is desirable when team members gain from complementarities, encourage knowledge transfer of idiosyncratic information, and create synergy (Lazear, 1998; Hamilton et al., 2003; Rose, 2002).

Competition Under Credit Rationing: Theory and Evidence from Rural China

Strategic pricing of the interest rate is a central feature of models of competition among financial institutions (Dinc, 2000; Villas-Boas and Schmidt-Mohr, 1999; Peterson and Rajan, 1995; Riordan, 1993; Besanko and Thakor, 1993 and 1987). In many countries, however, especially developing ones, financial markets remain highly regulated. Interest rates are set by the government, typically below market-clearing levels, and inter-bank lending is restricted. In such environments, banks are limited in their ability to price and lend strategically, so that the effects of competition may be different.

The Effect of High and Low Fat Pollens on Honeybee Longevity

A survey was conducted nationally of bee-collected pollens which were analysed for fatty acids. During the survey (see also DAW-100A), 73 different fatty acids were identified from all pollen samples. Only five of these fatty acids: palmitic, stearic, oleic, linoleic and linolenic were common to all 577 pollens sampled.

Slow and Fast Dietary Proteins

We all know that there are differences in carbohydrate - high glycemic, low glycemic, simple sugars, starches, etc. And we know that different carbohydrates are absorbed in the gut and appear in the blood at different rates depending on various factors - for example simple sugars are absorbed quickly and more complex ones, depending on how quickly they can be broken down, are absorbed more slowly. This makes up the basis for the glycemic index of not only foods but whole meals since the presence of protein and fat with the carbohydrates usually slows down the absorption over the whole digestive process. Fast and slow carbohydrates have different metabolic effects on the hormones and on various metabolic processes.

The Insurance Role of Rosca in the Presence of Credit Markets: Theory and Evidence

Rotating savings and credit associations (Roscas) are an important informal financial institution around the world. They are most common in developing countries, but immigrant groups in the United States also used them. All forms of Roscas share the following common feature: a group of individuals, mostly connected in some close social networks, commit to contribute a fixed sum of money into a "pot" in each of the equally spaced periods of the life of the Rosca; in each period, the "pot" is then allocated to one member of the Rosca through some mechanisms. The mechanism through which the"pot"is allocated is one of the key dimensions of the many variations of how Roscas operates around the world, as documented by the classic anthropological studies of Roscas by Geertz (1962) and Ardener (1964).

A Review of Commitment Savings Products in Developing Countries

Many financial institutions in developing countries offer savings products. Yet, little has been done to assess systematically and quantitatively the relative merits of different product designs. Savings is critical to households in developing countries. It allows households to smooth consumption in the face of volatile income and supports investments in human and physical capital.

The Role of Pension Funds in Capital Market Development

Demographic change is a growing concern for both developed and developing countries. Increasing longevity and reduced fertility threaten the sustainability of traditional pay-as-you-go pension systems. The pension contributions from the working population will not be sufficient to support the elderly. In response, countries are increasingly shifting their pension systems toward partial or full funding. In addition to the main purpose of coping with demographic pressures and unsustainable fiscal positions, other motivations for countries to reform their pension systems often include the hope that funded pensions will contribute to economic development by promoting national savings and capital market development.

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