This paper examines how control and ownership structure affect share repurchases in an emerging market where controlling families derive large private benefits. Whereas firms with concentrated ownership often pay cash dividends, firms with weak control rights often repurchase shares. The magnitude of repurchase increases with weak control rights, but decreases with strong foreign ownership. The...

This paper examines the evolution of market structure in emerging markets during the 1990’s. While a significant process of bank consolidation has been taking place in these countries, reflected in a sharp decline in the number of banks, this process has not systematically been associated with increased concentration as measured by standard indices. Moreover, econometric estimates based on the ...

This paper offers an analysis of the evolution of e-commerce markets. We develop a model in which an initial group of small, no-name “click” firms create such markets by offering horizontally differentiated customized or “versioned” products and competing in prices. Subsequently, a traditional “brick” firm enters by stretching its brand name into the digital marketplace. Such entry causes many ...

This paper presents an experimental study of dynamic indefinite horizon R&D races with uncertainty and multiple prizes. The theoretical predictions are highly sensitive: small parameter changes determine whether technological competition is sustained, or converges into a market structure with an entrenched leadership and lower aggregate R&D. The subjects’ strategies are far less sensitive. In m...

Implied volatilities of interest rate derivatives present some distinctive features, like the inverse relation with the underlying rates and the humped or decreasing shape of their term structure. The objective of this paper is to analyze and explain such features in a Gaussian framework. We will use an approximate relation which separates in a simple and natural way the effects on the implied ...

We offer a sketch of an Austrian theory corporate finance by studying the structure firms’ liabilities both on unhampered market and through monetary policy-induced business cycle. Building recent contributions time-structure savings, we show that booms are characterized increased leverage higher levels maturity mismatches for firms. Such fragilities to be corrected during busts.
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this paper examines the impact of 2005 presidential election of iran on the tehran stock exchange volatility as a political shock. it uses garch family (fiegarch, egarch, and garch) and markov regime switching (mrs) models as the analytical frameworks for the main the stock daily prices index. our findings confirm statistical validity of arima – fiegarch-x and ar(1) mrs as appropriate specifica...

We formalize the editorial role of news media in a multisector economy and show that can be an independent source business cycle fluctuations, even when they report accurate information. Public reporting about subset sectoral developments are newsworthy but unrepresentative causes firms across all sectors to hire too much or little labor. construct historical measures US coverage use them calib...

Firm-level, revenue-based productivity measures are ubiquitous in studies of firm dynamics and aggregate outcomes. One common measure is increasingly interpreted as reflecting “distortions” since distortions’ absence, equalization marginal revenue products should yield no dispersion this measure. Another but distinct the residual firm-level function, which reflects “fundamentals.” Using micro-l...

This paper applies a model of market power measurement under product differentiation to the case of the gasoline market in California, using data for the period 1983-1989. Our results show that there is a considerable degree of product differentiation among major brands. This allows firms to exercise local market power over their own specific products, but there are also signals of an important...