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Giroud et al. (2012) demonstrate in their study of corporate default that linking a significant reduction in leverage to an increase in firm performance can reverse causality.
In addition, while comply-or-explain reforms result in a greater increase in firm value than rule-based reforms, the effects of reforms are similar across civil law and common law countries.
We also find that for realistic parameter values, jointly optimizing the debt and capital structures generates a significant increase in firm value with respect to a situation where only the capital structure is optimized.
Based on a large-scale analysis of a sample of US manufacturing firms, we found that greater innovation rents appropriation is associated with an increase in firm specificity of its innovative knowledge.
However, ordered logit regressions show that the probability that a firm rates secrecy as more valuable than patents declines with an increase in firm size for product innovations, while there is no relationship for process innovations.
Using federal elections records to review 800,000 donations linked with 1,900 firms between 1984 and 2005, Michael J. Cooper, Huseyin Gulen and Alexei V. Ovtchinnikov calculate that political activity gave businesses a 3.6% increase in firm value.
Similar(51)
The tripartite national pact of 2009, without approval of the largest union confederation, conceded the possibility to suspend the sectoral wage increase in firms that had fallen on hard times.
Of course, the latter percentage reflects a reduction in firms taking a wait-and-see approach in the intermediate term (which seems intuitively plausible), but also an increase in firms deciding not to re-open (anytime soon or never) from 15% to 28% at the 10 month point.
We analyze a large panel of public firms over a 20-year period and find that increases in corporate venture capital investments are associated with subsequent increases in firm patenting.
Finally, the long-run growth effects associated with trade liberalization need to be considered, including increases in firm productivity due to access to new inputs and technologies as well as potential gains due to the disciplining effect of foreign competition on domestic mark-ups.
For the representative firm, an increase in the firm's capital stock leads to a parallel increase in its stock of knowledge.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com