Real business cycles in China are different than in many other countries, including consumption being more volatile than output and uncorrelated with investment. To study whether Chinese institutions can account for these features, we expand the standard real business cycle model with private...

We investigate the implications of government versus private ownership for bank minority shareholders. Specifically, we use unique data to examine whether the stock prices of government-owned and family-owned banks, equally engaged in related lending, differently react to loan announcements. Our...

This Article identifies a disturbing trend: wildlife management agencies permitting landowners to shift threatened and endangered species from their native habitat on commercially valuable land to public land, land in foreign countries, and even captive breeding facilities. Surprisingly, this...

On April 16, 2012 the Argentine Federal Government decreed the intervention of YPF. Its share price declined 29% the day after. Two weeks later the Argentinean Parliament approved the expropriation of 51% of the YPF shares owned by Repsol. We prepared a month ago the case “Valuation of an...

The “VERAVAL Valuation” forecasts a great future for ElectraBul with solid customer, sales and FCF growth. Between 2010 and 2019 the customer base is expected to grow by 60%, sales in MWh by 72%, etc. However, the “VERAVAL Valuation” concludes that the value of ElectraBul shares in April...

This case presents the valuation of the shares of an electric company in an emerging country. It permits the reader to identify errors and recalculate the valuation.ElectraBul was expropriated by the government in April 2010. The government said that ElectraBul shareholders should be paid a fair...

On April 16, 2012 the Argentine Federal Government decreed the intervention of YPF and expropriated of 51% of the YPF shares owned by Repsol. Repsol had a 57.4% stake. A tribunal will determine the compensation Repsol will receive for its YPF shares. You are required to help the tribunal. What...

We set up a model to study how ownership structure, corporate law and employment law interact to set the incentives that influence the decision by the large shareholder or manager effectively controlling the firm to divert resources from minority shareholders and employees. We suggest that...