Adverse Selection, Debt Capacity And Corporate Growth: An Industry Life Cycle Perspective

This paper examines the industry impact on financing corporate growth. According to underinvestment and overinvestment problems, ?rms are more likely to have less debt capacity in their growth stage of life cycle. However, it is known that new economy firms have higher levels of growth rate, return and risk, and particularly undertake more technical projects. Therefore, I test the hypothesis that debt capacity during the growth stage of life cycle is affected by New Economy. My empirical analysis covers U.S. companies listed on NYSE, AMEX and NASDAQ in the period of 1990-2010. I find that growth firms have significantly smaller debt capacity. Nevertheless, supporting the life cycle theory of financing that emphasizes the adverse selection problem faced by new economy firms, this link tends to be less prominent in the new economy industry. The results complement prior studies that have found significant relationship between firm growth and corporate debt capacity by confirming the important role played by the industry membership (New Economy) in determining the intensity of this relation

Volatility Spillovers Between Oil Prices And Stock Returns: A Focus On Frontier Markets

Frontier markets are increasingly sought by investors in search of higher returns and low correlation with traditional assets. As such, it is important for financial market participants to understand the volatility transmission mechanism across these markets in order to make better portfolio allocation decisions. This paper employs a bivariate BEKK-GARCH(1,1) model to simultaneously estimate the mean and conditional variance between equity stock markets (twenty-one national frontier stock indices and two broad indices – the MSCI Frontier Markets and the MSCI World) and oil prices. We examine weekly returns from February 8, 2008 to February 1, 2013 and find significant transmission of shocks and volatility between oil prices and some of the examined markets. Moreover, this spillover effect is sometimes bidirectional

On The Role Of Management Commitment In Export Performance: A Meta-Analysis

Research on exporting frequently points the role of management commitment in the export performance of the firm. This article reviews the conceptual, methodological, and empirical insights gained from a systematic analysis of 65 studies conducted on this subject. Undoubtedly, this stream of research has enhanced understanding of the importance of management commitment in affecting exporting activities. However, conceptually, there is still a lack of integral theoretical framework. Methodologically, limitations are identified concerning sampling designs, fieldwork procedures, and analytical methods. Empirically, hypothesized associations between export commitment and export performance lead to conflicting findings. After a presentation of meta-analysis techniques used and articles compiled, our paper provides an original investigation of this issue by implementing three meta-analyses to examine the relationship between commitment to export and export performance. The meta-analysis, more relevant than simple literature surveys, generally leads to the conclusion that there is a significant positive relationship between export commitment and export performance. Moreover, our findings suggest directions for future research in the field

On The Role Of Management Commitment In Export Performance: A Meta-Analysis

Research on exporting frequently points the role of management commitment in the export performance of the firm. This article reviews the conceptual, methodological, and empirical insights gained from a systematic analysis of 65 studies conducted on this subject. Undoubtedly, this stream of research has enhanced understanding of the importance of management commitment in affecting exporting activities. However, conceptually, there is still a lack of integral theoretical framework. Methodologically, limitations are identified concerning sampling designs, fieldwork procedures, and analytical methods. Empirically, hypothesized associations between export commitment and export performance lead to conflicting findings. After a presentation of meta-analysis techniques used and articles compiled, our paper provides an original investigation of this issue by implementing three meta-analyses to examine the relationship between commitment to export and export performance. The meta-analysis, more relevant than simple literature surveys, generally leads to the conclusion that there is a significant positive relationship between export commitment and export performance. Moreover, our findings suggest directions for future research in the field

Tools for the selection of microeconomic from socioeconomic rentability

Our aim in this research paper is to propose useful and practical criteria to answer the question of targeting aid of a micro-economic structure: Generating Activity of Revenues type. To achieve this goal, we have constructed macro and micro indices linking thecapital of a Generating Activity of Revenues with the update, which allowed us to obtain: a) A socioeconomicpartition of structures constituting the fabric of Generating Activity of Revenues; b) Indices based on the global rentability permitting to order these structures of thisbasis notion.&nbsp

On The Impact Of Firm Size On Risk And Return: Fresh Evidence From The American Stock Market Over The Recent Years

According to the size effect, small cap securities generally generate greater returns than those of large cap securities. Recent studies have however suggested that for certain periods, size cannot be considered as a relevant explanatory variable, and therefore as an anomaly. Our study, based on the American stock market, confirms that there is indeed a size effect applicable to the values of the Russell 3000 index. However, when considering the American market as a whole, the size effect is reversed

Characterization and limits of a cold atom Sagnac interferometer

We present the full evaluation of a cold atom gyroscope based on atom interferometry. We have performed extensive studies to determine the systematic errors, scale factor and sensitivity. We demonstrate that the acceleration noise can be efficiently removed from the rotation signal allowing to reach the fundamental limit of the quantum projection noise for short term measurements. The technical limits to the long term sensitivity and accuracy have been identified, clearing the way for the next generations of ultra-sensitive atom gyroscopes

Crowdfunding In France: A New Revolution?

In the last few years, small firms have had difficulties to finance their projects via the traditional bank system. A new type of financing has recently appeared in Europe and in particular in France: the crowdfunding. It is a method for funding a variety of new ventures, allowing individual founders of for-profit, cultural, or social projects to request funding from many individuals via Internet. Our paper contributes to the literature by introducing this financial innovation and building a theoretical framework to explain its success. We also discuss some more practical issues to enhance crowdfunding in France

Shock And Volatility Transmissions Between Bank Stock Returns In Romania: Evidence From A VAR-GARCH Approach

We develop a VAR-GARCH approach to investigate shock and volatility transmissions between bank stock returns in Romania during the 2007-2009 international financial crisis. Our findings provide evidence of significant shock and volatility transmissions between Romanian bank returns. We also show how our empirical results can be used to build effective diversification and hedging strategies

The Tunisian Tourism Business: What We Learn About The European Demand?

People from European countries are traditionally the most important sources of tourism for Tunisia. The aim of this paper is to analysis the European tourism demand for Tunisia. we propose a vector autoregression error correction model. The following methodology allows us to analysis the dynamic of Tunisian tourism in both short-term and long-term. Our main results show that the real exchange rate is an important factor explaining long-term overnight stays. A currency depreciation of 10% will increase the number of nights spent by visitors by 12% in the long term, but will have the opposite effect in the short term. However, we show that tourism demand is inelastic to income, indicating the low-cost nature of Tunisian tourism