Showing 1 - 10 of 12
Birth and death may be a better model than Brownian motion for many physical processes, which real options models will increasingly need to deal with. In this paper, we value a perpetual American call option, which gives the monopoly right to invest in a market in which the number of active...
Persistent link: https://www.econbiz.de/10005438027
We analyze the incentives of firms to delay patenting a product they intend to commercialize to maximize the period they can exploit the market under patent protection. We model the patenting and market-launching decisions and consider partial financing of these costs with debt. Agency conflicts...
Persistent link: https://www.econbiz.de/10010824356
The accounts of a large retailer showed statistical evidence that shrinkage (stock loss) was being measured with serious error. As a result, profit itself in many departments was seriously in error. These errors tended to wash out over large areas of the business, but at local level, serious...
Persistent link: https://www.econbiz.de/10009212325
This study examines the impact of ownership structure on Chinese banks' risk-taking behaviours. We classify the Chinese commercial banks into three categories based on the types of controlling shareholder, and find that banks controlled by the government (GCBs) tend to take more risks than those...
Persistent link: https://www.econbiz.de/10011117761
This paper examines the role of mutual funds in enhancing financial reporting quality in China. Mutual funds are more sophisticated and influential than individual investors. Therefore, they are expected to be more effective at preventing executives from expropriating investors and manipulating...
Persistent link: https://www.econbiz.de/10011117776
Persistent link: https://www.econbiz.de/10010824370
We examine the impact of the Split Share Structure Reform on the well-known foreign share discount puzzle in China. Existing literature confirms that foreign investors are more concerned about insider expropriation because of their information disadvantage relative to domestic investors. The...
Persistent link: https://www.econbiz.de/10010824373
The recent Split Share Structure Reform launched by the government in the Chinese stock market terminates trading constraints on restricted shares. In exchange for the consent of freely traded shareholders, restricted shareholders offer them consideration mainly in the form of restricted shares....
Persistent link: https://www.econbiz.de/10010824380
Persistent link: https://www.econbiz.de/10009150445
We examine the impact of mutual fund ownership on stock price informativeness in China. Existing evidence shows that stock price informativeness is low in China, and attributes this to firms’ lack of disclosure incentives under the weak investor protection institutional environment. Mutual...
Persistent link: https://www.econbiz.de/10010664199