Diversi®ed ®rms trade at a discount relative to comparable portfolios of stand-alone ®rms. One explanation is that these ®rms have inecient internal capital markets. We examine the link between ®rm value and the value of internal capital markets using a new form of corporate restructuring called tracking stock. We present a model that illustrates that the announcement e€ect of a tracking stock...

abstract t he return of capital is fundamental to the intertemporal allocation of resources by changing the consumption behavior and capital accumulation over time. taxation on return of capital increases the marginal product of capital, meaning that capital stock is lower than when capital is not taxed, which results decreased growth and welfare in steady state. this paper studies the impact o...

explanation relation between risk and return and capital asset pricing are concepts which is appointed as dominator and major paradigms in capital markets. so far as after offering capm by sharp & lintner, this model has been revised and criticized frequently. in this paper another version of capm has been tested versus traditional capm in tehran stock exchange. this version of capm measures se...

The purpose of this study was to examine the expected returns of Carhart model compared to the capital asset pricing model and the implicit capital cost model based on cash and capital returns of growth and value stocks. The statistical population consisted of the companies listed in Tehran Stock Exchange and the time domain is between 2007 and 2016. By choosing Cochran sampling, 126 companies ...

With trend of globalization in the international financial market, a more intimate relationship of capital flows is being formed day by day in capital market. Thus, it is important to understand the relationship of individual country with others in the international stock markets. The main purpose of this study is to explore the relationship of Stock Indices among China, US, and Japan. The stud...

China’s current saving and investment levels are extraordinary— both in terms of its own history, but also by comparison with the current and historical experience of high-saving countries like Japan. The International Monetary Fund’s 2005 World Economic Outlook places China’s gross saving at 50 percent of GDP with gross capital formation, not far behind, at 45 percent of GDP (IMF 2005: 96–97)....

Our objective is to investigate, how the combination of habit formation with endogenous capital utilization decisions affects the process of economic growth. We find that in the presence of positive productivity growth, habit formation in consumption reduces the rate of capital utilization while increasing the long run stock of capital. We show in the Chamley–Judd result of zero income capital ...

The state of capital markets looks particularly poor when we consider the efforts already undertaken to improve the macroeconomic environment and reform the institutions believed to foster financial development. In the case of Latin America, the results appear even more discouraging in light of the better evolution of capital markets in East Asia and their rapid growth in developed economies (e...

Human capital is increasingly believed to play an important role in the growth process; however, adequately measuring its stock remains controversial. Because the estimated impact that human capital has on economic growth is sensitive to the measures or proxies of human capital, accurate and consistent measures of human capital are needed. While many measures of human capital have been develope...