IS THERE A POSITIVE ASSOCIATION BETWEEN MERGER AND ACQUISITION AND NON-MERGER AND ACQUISITION FDI? FIRM-LEVEL EVIDENCE FROM JAPANESE FOREIGN DIRECT INVESTMENT INTO UNITED STATES

2013 ◽  
Vol 58 (04) ◽  
pp. 1350028
Author(s):  
JOSEPH D. ALBA ◽  
PETER X. K. SONG ◽  
PEIMING WANG
Keyword(s):  
United States ◽  
Positive Association ◽  
The United States ◽  
Merger And Acquisition ◽  
Foreign Direct Investments ◽  
Firm Level ◽  
Complementary Effect ◽  
Japanese Firms ◽  
Level Data ◽  
Unit Increase

Japanese firms undertake multiple foreign direct investments (FDIs) in the United States. When Japanese firms undertake merger and acquisition (M&A) FDI, they acquire indivisible assets in the United States. To utilize their acquired assets fully, these firms may undertake additional non-M&A FDI. This implies a positive association between the number of M&As and the number of non-M&A FDIs because they may be complements. In contrast, the literature on the choice of modes of FDI examines the tradeoff between M&A and non-M&A FDI. This may suggest a negative association between the number of M&As and non-M&A FDIs because they may be substitutes. The authors examine whether the number of M&As and non-M&A FDIs are positively associated or not by proposing an econometric model that tests the contemporaneous association and the lagged complementary effect between M&A and non-M&A FDI. Using firm-level data, the authors find evidence that M&A and non-M&A FDI of Japanese firms in the United States are positively associated. Particularly, the findings indicate that given all other things equal, a one unit increase in the number of the firm's M&A FDI (non-M&A) projects in a given year will increase the firm's average non-M&A (M&A) FDI by 28.1% (15.8%) the following year.

scholarly journals Heterogeneous Markups, Growth, and Endogenous Misallocation

Econometrica ◽  
2020 ◽  
Vol 88 (5) ◽  
pp. 2037-2073 ◽  
Author(s):  
Michael Peters
Keyword(s):  
United States ◽  
Market Power ◽  
Productivity Growth ◽  
Firm Dynamics ◽  
The United States ◽  
Equilibrium Outcome ◽  
Firm Level ◽  
Competitive Effects ◽  
Level Data ◽  
Firm Level Data

Markups vary systematically across firms and are a source of misallocation. This paper develops a tractable model of firm dynamics where firms' market power is endogenous and the distribution of markups emerges as an equilibrium outcome. Monopoly power is the result of a process of forward‐looking, risky accumulation: firms invest in productivity growth to increase markups in their existing products but are stochastically replaced by more efficient competitors. Creative destruction therefore has pro‐competitive effects because faster churn gives firms less time to accumulate market power. In an application to firm‐level data from Indonesia, the model predicts that, relative to the United States, misallocation is more severe and firms are substantially smaller. To explain these patterns, the model suggests an important role for frictions that prevent existing firms from entering new markets. Differences in entry costs for new firms are less important.

Covered Farm Mortgage Bonds in the United States During the Late Nineteenth Century

2010 ◽  
Vol 70 (4) ◽  
pp. 783-812 ◽  
Author(s):  
Kenneth A. Snowden
Keyword(s):  
United States ◽  
The United States ◽  
Mortgage Market ◽  
Late Nineteenth Century ◽  
Housing Crisis ◽  
Firm Level ◽  
Mortgage Debt ◽  
Risk Characteristics ◽  
Level Data ◽  
Mortgage Crisis

Covered mortgage bonds have been used successfully in Europe for two centuries, but failed in the United States when introduced as farm mortgage debentures in the 1880s. Using firm-level data and a sample of loans made by one Kansas mortgage company, I find that debenture programs grew out of established loan brokerage operations and were used to fund mortgages that were difficult to broker because of size, term, or risk characteristics. Debentures broadened access to the interregional mortgage market and facilitated an expansion of western farm mortgage debt before the innovation failed in the mortgage crisis of the 1890s.“[T]he availability of affordable mortgage financing is essential to turning the corner on the current housing crisis …. One option we have looked at extensively is covered bonds, which … have the potential to increase mortgage financing, improve underwriting standards, and strengthen U.S. financial institutions ….”Secretary of Treasury Henry PaulsonJuly 28, 2008

scholarly journals Investor Sentiment and Employment

2019 ◽  
Vol 55 (5) ◽  
pp. 1581-1618
Author(s):  
Maurizio Montone ◽  
Remco C. J. Zwinkels
Keyword(s):  
Investor Sentiment ◽  
Strong Support ◽  
Positive Association ◽  
Spillover Effects ◽  
The United States ◽  
Dark Side ◽  
Foreign Direct Investments ◽  
Level Data ◽  
International Industry ◽  
Negative Effect

We develop a multi-country model with moral hazard and noise traders and show that investor sentiment should affect employment growth both domestically and abroad. Using a large sample of international industry-level data, we find strong support for the model’s predictions. We show that U.S. investor sentiment has a positive association with labor market conditions around the world, due to spillover effects as well as foreign direct investments from the United States. We also find that U.S. sentiment amplifies the negative effect of local financial crises on job losses, which supports the idea that financial development has a “dark side.”

scholarly journals Troubled Banks, Impaired Foreign Direct Investment: The Role of Relative Access to Credit

2002 ◽  
Vol 92 (3) ◽  
pp. 664-682 ◽  
Author(s):  
Michael W Klein ◽  
Joe Peek ◽  
Eric S Rosengren
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Real Exchange Rates ◽  
The United States ◽  
Data Sets ◽  
Firm Level ◽  
Access To Credit ◽  
Japanese Firms ◽  
Level Data ◽  
Japanese Fdi

During the 1980's, theories were developed to explain the striking correlation between real exchange rates and foreign direct investment (FDI). However, this relationship broke down for Japanese FDI in the 1990's, as the real exchange rate appreciated while FDI plummeted. We propose the relative access to credit hypothesis and show that unequal access to credit by Japanese firms contributes to the explanation of declining Japanese FDI. Using bank-level and firm-level data sets, we find that financial difficulties at banks were economically and statistically important in reducing the number of FDI projects by Japanese firms into the United States.

scholarly journals Household COVID-19 risk and in-person schooling

Science ◽  
2021 ◽  
pp. eabh2939
Author(s):  
Justin Lessler ◽  
M. Kate Grabowski ◽  
Kyra H. Grantz ◽  
Elena Badillo-Goicoechea ◽  
C. Jessica E. Metcalf ◽  
...  
Keyword(s):  
United States ◽  
Online Survey ◽  
Positive Association ◽  
The United States ◽  
Mitigation Measures ◽  
Office Work ◽  
School Based ◽  
Increased Risk ◽  
Extra Curricular Activities ◽  
Low Levels

In-person schooling has proved contentious and difficult to study throughout the SARS-CoV-2 pandemic. Data from a massive online survey in the United States indicates an increased risk of COVID-19-related outcomes among respondents living with a child attending school in-person. School-based mitigation measures are associated with significant reductions in risk, particularly daily symptoms screens, teacher masking, and closure of extra-curricular activities. A positive association between in-person schooling and COVID-19 outcomes persists at low levels of mitigation, but when seven or more mitigation measures are reported, a significant relationship is no longer observed. Among teachers, working outside the home was associated with an increase in COVID-19-related outcomes, but this association is similar to other occupations (e.g., healthcare, office work). While in-person schooling is associated with household COVID-19 risk, this risk can likely be controlled with properly implemented school-based mitigation measures.

scholarly journals Sport Spectatorship and Life Satisfaction: A Multicountry Investigation

2017 ◽  
Vol 31 (4) ◽  
pp. 419-432 ◽  
Author(s):  
Yuhei Inoue ◽  
Mikihiro Sato ◽  
Kevin Filo ◽  
James Du ◽  
Daniel C. Funk
Keyword(s):  
United States ◽  
Life Satisfaction ◽  
Emotional Support ◽  
Positive Association ◽  
Well Being ◽  
The United States ◽  
Professional Sport ◽  
Team Identification ◽  
Sport Events ◽  
Satisfaction Relationship

Elite and professional sport events have been recognized as potential mechanisms to enhance well-being. This multicountry study investigates how engagement in such events, behaviorally through live spectating and psychologically through team identification, is associated with life satisfaction. Data from Australia (N = 268) revealed a positive association between live spectating and life satisfaction through a two-wave design measuring live spectating and life satisfaction in separate surveys. Data from the United States (N = 564) confirmed the live spectating–life satisfaction relationship found in Study 1. Additionally, Study 2 revealed individuals with higher levels of team identification perceived greater emotional support from other fans, and this perception, in turn, predicted life satisfaction. Our findings provide sport managers with implications for positioning appeals in support of sport programs and designing events that facilitate engagement to promote life satisfaction in the community.

Quality of Life and the Carbon Footprint: A Zip-Code Level Study Across the United States

2021 ◽  
Vol 30 (4) ◽  
pp. 323-343
Author(s):  
Matthew Thomas Clement ◽  
Chad L. Smith ◽  
Tyler Leverenz
Keyword(s):  
Quality Of Life ◽  
United States ◽  
Carbon Footprint ◽  
Ecological Impact ◽  
Well Being ◽  
The United States ◽  
Alternative Measure ◽  
Level Data ◽  
Zip Code

Much sustainability scholarship has examined the environmental dimensions of subjective and objective well-being. As an alternative measure of human well-being, we consider the notion of quality of life and draw on a framework from the sustainability literature to study its association with ecological impact, specifically the carbon footprint. We conduct a quantitative analysis, combining zip-code level data on quality of life and the carbon footprint per household for the year 2012 across the continental United States ( n=29,953). Findings consistently show a significant, negative association between quality of life and the carbon footprint. Our findings point to the potential advantages of utilizing robust objective measures of quality of life that extends beyond economic well-being and life expectancy alone. Furthermore, our findings question the conventional wisdom that sustainability requires sacrifices, while suggesting opportunities for how increased levels of sustainability may be achieved while retaining high levels of quality of life.

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