Accounting information and excess stock returns: the role of the cost of capital – new evidence from US firm-level data

2011 ◽  
Vol 22 (4) ◽  
pp. 321-329
Author(s):  
Nicholas Apergis ◽  
George Artikis ◽  
Sofia Eleftheriou ◽  
John Sorros
Keyword(s):  
Stock Returns ◽  
Cost Of Capital ◽  
Accounting Information ◽  
Firm Level ◽  
Level Data ◽  
Firm Level Data ◽  
Excess Stock Returns ◽  
The Cost ◽  
New Evidence

Is There a Presidential Election Cycle in Firm Financials?

2016 ◽  
Vol 19 (02) ◽  
pp. 1650010 ◽  
Author(s):  
Ray R. Sturm
Keyword(s):  
Stock Returns ◽  
Presidential Election ◽  
Firm Value ◽  
Firm Valuation ◽  
Election Cycle ◽  
Firm Level ◽  
Academic Literature ◽  
Level Data ◽  
Firm Level Data

A presidential election cycle (PEC) in stock returns has been well-documented in the academic literature. Prior studies have pointed to economic policy as a cause of the phenomenon apparently overlooking the role of firm value. This study examines changes in firm valuation as the cause. Using firm-level data, this study finds a convincing cycle in firms’ book-to-market (BE/ME) ratios, earnings yield and most notable, in log-changes in annual revenue. In particular, log-changes in revenue during the election year appear to be instrumental in the previously document PEC in stock returns.

Determinants of Business Fixed Investment: Evidence from German Firm-Level Data

2016 ◽  
Vol 236 (5) ◽  
pp. 533-556
Author(s):  
Thiess Buettner ◽  
Anja Hoenig
Keyword(s):  
Empirical Analysis ◽  
Cost Of Capital ◽  
German Economy ◽  
Business Climate ◽  
Firm Level ◽  
Level Data ◽  
Firm Level Data ◽  
Business Survey ◽  
The Cost ◽  
The Empirical Analysis

Abstract This paper employs a novel firm-level dataset that combines financial accounts of German firms with data from a business survey to shed new light on the demand for capital. The empirical analysis employs firm-specific indicators in order to explore the effects of sales, the cost of capital and indicators of the business climate, which are used by the ifo Institute to provide a leading indicator for the German economy. The empirical results support a robust significant effect of a firm’s cost of capital on the stock of capital with an elasticity not significantly different from –1. Controlling for sales, a good rather than normal business situation is found to be associated with about 8 % higher investment.

scholarly journals Creative Destruction of Industries: Yokohama City in the Great Kanto Earthquake, 1923

2019 ◽  
Vol 79 (1) ◽  
pp. 1-31 ◽  
Author(s):  
Tetsuji Okazaki ◽  
Toshihiro Okubo ◽  
Eric Strobl
Keyword(s):  
Creative Destruction ◽  
Manufacturing Industries ◽  
Firm Level ◽  
Machine Technology ◽  
Kanto Earthquake ◽  
Level Data ◽  
Firm Level Data ◽  
Before And After

The Great Kanto Earthquake occurred on 1 September 1923 and inflicted serious damage on Yokohama City. About 90 percent of the factories in Yokohama City were burnt down or completely destroyed. However, these manufacturing industries appear to have swiftly recovered in the aftermath of the damage. This article investigates the role of creative destruction due to the Great Kanto Earthquake. Using firm-level data on capital (horsepower of motors) before and after the earthquake, we find substantial creative destruction, that is, upgrade of machine technology and/or survival of efficient firms. We find further collaborating evidence of this at the prefecture level.

The Lead-Lag Relationship between the Stock Market and CDS Market in Korea

2010 ◽  
Vol 18 (4) ◽  
pp. 1-22
Author(s):  
Kwangil Bae ◽  
Hankil Kang ◽  
Changjun Lee
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Empirical Finding ◽  
Sample Analysis ◽  
Firm Level ◽  
Level Data ◽  
Firm Level Data ◽  
Controlling Variables ◽  
Bid Ask Spreads ◽  
Number Of Firms

This study examines the lead-lag relationship between the stock market and CDS market in Korea using the firm-level data during 2006-2009. Our main findings can be summarized as follows. First, our empirical finding shows that stock returns Granger cause CDS spread changes for a larger number of firms than vice versa. Second, the sub-sample analysis reveals that while the stock market leads the CDS market in each sub-sample, the lead-lag relationship is more pronounced in the post-crisis period. Finally, our main findings remain the same even in the presence of controlling variables such as equity volatilities, absolute bid-ask spreads, and CDS premium on foreign exchange stabilization bonds issued by Korean government. In sum, consistent with the U. S. and U. K. evidence, it appears that the stock market leads the CDS market in Korea.

Exporting and environmental performance: where you export matters

2022 ◽  
Author(s):  
Juan S. Blyde ◽  
Mayra A. Ramírez
Keyword(s):  
Developing Countries ◽  
High Income ◽  
Firm Level ◽  
Percentage Point Increase ◽  
Level Data ◽  
Point Increase ◽  
Firm Level Data ◽  
Micro Level ◽  
The Relationship

Empirical analyses that rely on micro-level panel data have found that exporters are generally less pollutant than non-exporters. While alternative explanations have been proposed, firm level data has not been used to examine the role of destination markets behind the relationship between exports and pollution. In this paper we argue that because consumers in high-income countries have higher valuations for clean environments than consumers in developing countries, exporters targeting high-income countries are more likely to improve their environmental outcomes than exporters targeting destinations where valuations for the environment are not high. Using a panel of firm-level data from Chile we find support to this hypothesis. A 10 percentage point increase in the share of exports to high-income countries is associated with a reduction in CO2 pollution intensity of about 16%. The results have important implications for firms in developing countries aiming to target high-income markets.

A neglected input to production: the role of ICT-schooled employees in firm performance

2017 ◽  
Vol 38 (3) ◽  
pp. 373-391 ◽  
Author(s):  
Eva Hagsten ◽  
Anna Sabadash
Keyword(s):  
Data Sets ◽  
Firm Level ◽  
Broadband Internet ◽  
Content Type ◽  
Institutional Settings ◽  
Level Data ◽  
Firm Level Data ◽  
Information And Communication ◽  
Econometric Approach

Purpose The purpose of this paper is to broaden the perspective on how information and communication technology (ICT) relates to productivity by introducing a novel ICT variable: the share of ICT-schooled employees in firms, an intangible input often neglected or difficult to measure. Design/methodology/approach Based on a Cobb-Douglas production function specification, the association between the share of ICT-schooled employees and firm productivity is estimated by the use of unique comparable multi-linked firm-level data sets from statistical offices in six European countries for the period of 2001-2009. Findings There are indications that the share of ICT-schooled employees significantly and positively relates to productivity, and also that this relationship is generally more persistent than that of ICT intensity of firms, measured as the proportion of broadband internet-enabled employees. However, the strength of the association varies across countries and demonstrates that underlying factors, such as industry structure and institutional settings might be of importance too. Research limitations/implications Data features and the way to access harmonised firm-level data across countries affect the choice of econometric approach and output variable. Practical implications The results emphasise the importance of specific ICT skills in firms independently of where in the organisation the employee works. Originality/value Studies on associations between employees with specific (higher) education based on formal credentials and productivity are rare. Even more uncommon is the cross-country setting with harmonised data including general ICT intensity of firms.

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