Wealth transfer effects between stockholders and bondholders

Prior research has addressed the question of whether certain events cause a transfer of wealth between stockholders and bondholders but does not control for the events’ impacts on firms’ credit risk. This may explain why many studies fail to identify wealth transfers. By employing announcements of reductions in credit quality, we find that two types of events cause wealth transfers from bondholders to stockholders. These are unexpected increases in firm leverage, and the firms’ contemporaneous involvement in M&A. Both cases reveal positive excess stock returns and CDS premiums, which exhibit a significantly positive correlation.     

Price and quality decisions under network effects

I analyse monopoly pricing and quality decisions under network effects. High quality premium and low quality punishment are found to depend on how the impact of marginal costs on quality relates to the intensity of the network effect and the optimism of the producer about final demand. More precisely, marginal costs have to be low enough (but not too low) with respect to the intensity of the network effects and/or the optimism about final demand so that higher prices reflect higher quality. A similar conclusion can be drawn about incentives for quality provision, whenever quality is considered endogenous together with price.     

Estimating causal effects of credit decisions

In principle, making credit decisions under uncertainty can be approached by estimating the potential future outcomes that will result from the various decision alternatives. In practice, estimation difficulties may arise as a result of selection bias and limited historic testing. We review some theoretical results and practical estimation tools from observation study design and causal modeling, and evaluate their relevance to credit decision problems. Building on these results and tools, we propose a novel approach for estimating potential outcomes for credit decisions with multiple alternatives based on matching on multiple propensity scores. We demonstrate the approach and discuss results for risk-based pricing and credit line increase problems. Among the strengths of our approach are its transparency about data support for the estimates and its ability to incorporate prior knowledge in the extrapolative inference of treatment-response curves.     

Wealth effects of time variation in investor risk preferences

We investigate the source of risk premiums: individual risk preferences. By examining the wealth characteristics of agents of different risk preferences, we study the financial incentive of investors to demonstrate different risk preferences. To accomplish this, we model the stock market utilizing artificial adaptive agents. If investors have incentive to vary their risk preferences, or if investors of a constant risk preference vary the way they participate in the market under different market conditions, this could lead to time variation in market risk premiums. We find that agents have significant incentive to demonstrate different risk preferences under different market conditions.(JEl G12)     

Wealth effects of the Basle Accord on small banks

This paper examines the share price reactions of small commercial banks to the announcement of the Basle Accord. Previous studies document that large banks have negative price reactions to the announcement of the accord. Findings here show that small banks have positive share price reactions. Our overall evidence gives some support to the notion that small banks had excessive capital before the Basle Accord, and the Accord created wealth effects in the banking industry.     

Experimental evidence of gender effects in arbitration decisions

The study investigates arbitrator gender and arbitrator-grievant gender effects on the decisions of 146 arbitrators rendered on a hypothetical sexual harassment case. Gender was not found to have a statistically significant effect on the decisions examined. However, other characteristics of the arbitrator—level of experience and level of education—were found to influence the arbitral decision.     

Uncertain dynamics,correlation effects,and robust investment decisions

We analyze a firm׳s investment problem when the dynamics of project value and investment cost are uncertain. We provide an explicit solution using a robust method for an ambiguity averse firm taking this into account. Ambiguity aversion regarding a common risk factor impacts differently than ambiguity aversion regarding investment cost residual risk. Correlation between project value and investment cost matters; ambiguity aversion regarding common risk can decrease the investment probability only if correlation is positive. Ambiguity aversion regarding residual risk always increases the investment probability. When only project value is risky, volatility can monotonically decrease the investment threshold; this does not hold with the multiple prior method.     

From The Wealth of Nations to Populorum Progressio (On the Development of Peoples): Wealth and Development from the Perspective of the Catholic Social Thought Tradition

Catholic social thought (CST) looks at economic development from the broader framework of authentic human development. It is only by viewing both man's dignity and his social nature that we include the full nature of the human being. In CST wealth is understood based on its role in promoting authentic human development. Wealth is a gift from God, with humans participating in its creation, and its creation, distribution, and its use must be carried out in a manner that respects God's law (justice and charity). Furthermore, man should never place wealth above God or above humans. Those who control wealth have special responsibilities with regards to their use of it; thus the right of private property is always restricted by the social responsibility to use it towards the common good. The goal must be the development of the whole person and all people. Wealth is socially created and thus must be distributed, at least partially, among the entire community. Economic development needs to be grounded in social justice and its two co‐principles, charity and justice. Grounding economic development in the authentic development of the person means placing the people of the poor countries at the center of their development drama, both as the leading actors and as the directors.     

生鲜食品加工物流中心规划设计系列讲座之四生鲜食品加工物流中心细部设计(之一)

本章中定义的细部设计,是在前几章从概念设计、数据分析、系统化设计的基础上,计算出的生鲜食品加工物流中心明确的可量化的各项需求,并在此需求的基础上进行进一步的细化、具体化的设计,包括:明确化的标准作业流程、各作业区域及库区场地面积;各作业区域、库区温层温度控制范围;物流相关设备、设施细部规划、工艺说明、施工规范;物流容器选择、规格等等.     

生鲜食品加工物流中心规划设计系列讲座之二生鲜食品加工中心规划设计准备

一、基本资料收集 1．数据资料的取得 首先要收集EIQ的资料。E（Entry of Order）指订单分析，I（Item）指品项，Q（Quantity）指数量。可根据一日、一周、一个月或一年的数据进行汇总、平均、筛选，数据收集的时间跨度依需求而定。     

Statistics and the Wealth of Nations

The relationship of statistics and national prosperity is not a simple causal one, but some historical examples suggest a persistent association. A number of examples are considered, from the political arithmetic of the seventeenth century to the quality assurance methods of the 1950s, and a few speculative conclusions are offered.     

杰克·韦尔奇:为投资者创造了亿万财富的商界奇才(二)

大师课堂1 领导一个团队每个领导者都要完成某种任务和领导某个团队.要想像杰克·韦尔奇那样工作.你不仅要自己尽力做到最好,你还必须能让整个团队取得最佳成绩.     

杰克·韦尔奇:为投资者创造了亿万财富的商界奇才(三)

杰克·韦尔奇对竞争如痴如狂,但只是对他能获胜的竞争才如此.他指出,去打那些注定要失败之仗是毫无好处的.韦尔奇的主张,表达了他在GE早期经历中萌生的那种坚定不移的哲学:成为你所在市场的第一或第二,否则,拿不起就放下.     

杰克·韦尔奇:为投资者创造了亿万财富的商界奇才(五)

5 开发变革力量●互联网怎样创造了无限商机●为什么到达最高点只是开始而不是结束●韦尔奇怎样发现GE剧增的订单背后潜在的危机●在公司里强行推行变革的方法显然是成功的     

杰克·韦尔奇:为投资者创造了亿万财富的商界奇才(一)

企业开拓者杰克·韦尔奇是20世纪后期企业职业经理人精英中的代表.直到2000年,作为通用电气公司(GE)的首席执行官任期届满之时,他一直都足首席执行官这个角色的最佳楷模.韦尔奇的赫赫声名部分来自他所创造的巨大财富.在1981年4月1日愚人节这天,韦尔奇走马上任,当时通用电气公司的市值是139亿美元.时至1999年秋,通用电气公司的市值已飙涨了将近30倍,高达4108亿美元.     

生鲜食品加工物流中心细部设计(之二)

在本章中,详细介绍生鲜食品加工物流中心物流设备设施细部设计说明及相应规范. 货架工程 主要包括与本规划设计相适应的货架的工艺要求及规范. 1.货架系统总体结构必须达到的防震效果 2.防震、防风需求标准值为:     

生鲜食品加工物流中心规划系列讲座之一生鲜食品加工物流中心规划设计程序

蔬菜、水果、肉类、水产品等生鲜食品需要通过低温流通才能使其最大限度地保持食品原有的新鲜程度、色泽、风味及营养，冷链物流因此而产生。冷链中的重要节点是低温物流中心。与普通物流中心相比较，低温物流中心的规划设计具有许多特殊之处。 这次我们特别邀请了北京启达乔泰咨询有限公司总经理李彦杰先生撰写系列文章，主要内容包括：生鲜食品加工物流中心规划设计程序、生鲜食品加工物流中心规划设计准备、系统化设计、细部规划设计、工程图纸与工程项目划分等。[编者按]     

Investment decisions in manufacturing: assessing the effects of real oil prices and their uncertainty

We investigate the effects of real oil prices and their uncertainty on investment decisions. Making use of plant‐level data, we estimate dynamic, discrete‐choice models that allow modeling investment inaction, under different assumptions related to initial conditions and unobserved heterogeneity. We find that increases in real oil price changes and in real oil price uncertainty significantly reduce the likelihood of investment action, in line with the predictions of irreversible investment theory. We also document that investment decisions exhibit strong, pure state dependence and are also significantly affected by initial conditions. Copyright © 2012 John Wiley & Sons, Ltd.