1,856 research outputs found

    Explaining the Cross-Section of Stock Returns in Japan: Factors or Characteristics?

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    Japanese stock returns are even more closely related to their book-to-market ratios than are their U.S. counterparts, and thus provide a good setting for testing whether the return premia associated with these characteristics arise because the characteristics are proxies for covariance with priced factors. Our tests, which replicate the Daniel and Titman (1997) tests on a Japanese sample, reject the Fama and French (1993) three-factor model but fails to reject the characteristic model.

    Why do firms switch banks? Evidence from China

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    This paper uses a sample of matched data of firms-banks in China over the period 1999-2012 to determine the drivers of firms switching behaviour from one bank relationship to another. The findings conform to the extant literature and therefore indicate that the switching behaviour of Chinese firms is no different to firms elsewhere. The results show that the principal driver of a switching action is the credit needs of the firm and a mixture of firm and bank characteristics. The findings support the extant literature that less opaque firms are able to switch more readily than opaque firms. The results also suggest that banks that develop there fee income services are more effective in locking-in their borrowers

    The determinants and profitability of switching costs in Chinese banking

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    Using a sample of 151 banks over the period 2003 to 2010, this paper estimates a model that examines the effect of switching costs in the Chinese loan market on banking profitability. In keeping with the extant empirical literature it reports a positive relationship between bank profitability and switching costs. Furthermore it reports the estimation of a systems model of switching costs and profitability. The main result is that bank size measured by total assets is has a complex relationship with switching costs. Competition between small banks creates the incentive for lock-in and increased switching costs whereas very large banks are less exercised by lock-in and switching costs. The study also finds that concentration has a negative relationship with switching costs and profitability, confirming the accepted view that the large state-owned banks are concerned with social as well as profit objectives

    Limited loan rate differentiation, guanxi, loan size and loan maturity in the Chinese bank credit market

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    Since 2004, China has partially liberalized loan rate setting by the banks, but loan rates remain stubbornly within narrow bounds. We argue that competition in the loan market is signalled through the variation of loan deal terms and loan maturity rather than loan rates. We examine the determinants of loan deal conditions in terms of size and maturity. This paper focuses on the role of single firm-bank relationships in determining loan deal conditions as evidence of guanxi in Chinese banking market. Commercial loan deal terms of listed companies are matched to provider banks over the period 1999–2012 and sub-sample estimation for the pre-2004 and post-2004 periods confirm a change in the bank-firm-loan relationship. We find that single firm-bank relationships are associated with larger loan size and longer loan maturity in the pre-liberalization period but that this relationship has weakened in the liberalization period

    Small Business Financing: Survey Evidence in West Texas

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    We investigate the financial sources of small firms through a survey of sample firms from West Texas. Evidence shows that the two most common start-up financing alternatives are personal savings and commercial bank loans. Commercial banks remain the most popular source of financing for present and future needs, followed by leasing companies and credit unions. Informal types of financing such as business credit cards, and trade credit are used in addition to lines of credit for transaction and working capital purposes. Firms typically review their financial performance monthly and use common cash balances as the primary financial tool

    The determinants and profitability of switching costs in Chinese banking

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    Using a sample of 151 banks over the period 2003 to 2010, this paper estimates a model that examines the effect of switching costs in the Chinese loan market on banking profitability. In keeping with the extant empirical literature it reports a positive relationship between bank profitability and switching costs. Furthermore it reports the estimation of a systems model of switching costs and profitability. The main result is that bank size measured by total assets is has a complex relationship with switching costs. Competition between small banks creates the incentive for lock-in and increased switching costs whereas very large banks are less exercised by lock-in and switching costs. The study also finds that concentration has a negative relationship with switching costs and profitability, confirming the accepted view that the large state-owned banks are concerned with social as well as profit objectives

    Why do firms switch banks? Evidence from China

    Get PDF
    This paper uses a sample of matched data of firms-banks in China over the period 1999-2012 to determine the drivers of firms switching behaviour from one bank relationship to another. The findings conform to the extant literature and therefore indicate that the switching behaviour of Chinese firms is no different to firms elsewhere. The results show that the principal driver of a switching action is the credit needs of the firm and a mixture of firm and bank characteristics. The findings support the extant literature that less opaque firms are able to switch more readily than opaque firms. The results also suggest that banks that develop there fee income services are more effective in locking-in their borrowers

    The finite element method for neutron diffusion problems in hexagonal geometry

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    Originally presented as the first author's thesis (Ph. D.), M.I.T. Dept. of Nuclear Engineering, 1975Includes bibliographical references (pages 163-164)Energy Research and Development Agency report AT(11-1)-226

    Local environment of Nitrogen in GaN{y}As{1-y} epilayers on GaAs (001) studied using X-ray absorption near edge spectroscopy

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    X-ray absorption near-edge spectroscopy (XANES) is used to study the N environment in bulk GaN and in GaN{y}As{1-y} epilayers on GaAs (001), for y \~5%. Density-functional optimized structures were used to predict XANES via multiple-scattering theory. We obtain striking agreement for pure GaN. An alloy model with nitrogen pairs on Ga accurately predicts the threshold energy, the width of the XANES ``white line'', and features above threshold, for the given X-ray polarization. The presence of N-pairs may point to a role for molecular N_2 in epitaxial growth kinetics.Comment: Four pages (PRL style) with two figure

    Why is it Difficult to Detect a Millisecond Pulsar in Neutron Star X-ray Binaries?

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    We explain why it is possible to detect directly X-ray emission from near the surface of the neutron star (NS) in SAX J1808.4-3658 but not in most other low-mass X-ray binaries (LMXBs), with the exception that emission from the surface can be seen during bursts events. We show that the X-ray emission from SAX J1808.4-3658 mostly originates in the Comptonization process in a relatively optical thin hot region (with an optical depth Ď„0\tau_0 around 4 and temperature is around 20 keV). Such a transparent region does not prevent us from detecting coherent X-ray pulsation due to hot spots on the NS surface. When the characteristic scattering time in the region is of order of inverse rotational frequency omega or higher then the amplitude of the harmonic oscillation decays exponentially with (tau_0 x omega). We give a precise model for the loss of modulation, such suppression of the QPO amplitude due to scattering can explain the disappearance of kHz QPOs with increasing QPO frequency. We also formulate general conditions under which the millisecond X-ray pulsation can be detected in LMXBs. We demonstrate that the observed soft phase lag of the pulsed emission is a result of the downscattering of the hard X-ray photons in the relatively cold material near the NS surface. In the framework of this downscattering model we propose a method to determine the atmosphere density in that region from soft-lag measurements.Comment: 9 pages, 3 figures, accepted for publication in Ap. J. Letter
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