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Investment Activity (investment + activity)
Selected AbstractsAnticipating Tax Changes: Evidence from the Finnish Corporate Income Tax Reform of 2005,FISCAL STUDIES, Issue 2 2008Seppo Kari H25; H32 Abstract Using register-based panel data covering all Finnish firms from 1999 to 2004, we examine how corporations anticipated the 2005 dividend tax increase via changes in their dividend and investment policies. The Finnish capital and corporate income tax reform of 2005 creates a useful opportunity to measure this behaviour, since it involves exogenous variation in the tax treatment of different types of firms. The estimation results reveal that those firms that anticipated a dividend tax hike increased their dividend payouts in a statistically significant way. This increase was not accompanied by a reduction in investment activities, but rather was associated with increased indebtedness in non-listed firms. The results also suggest that the timing of dividend distributions probably offsets much of the potential for increased dividend tax revenue following the reform. [source] The Euro and International Capital MarketsINTERNATIONAL FINANCE, Issue 1 2000Carsten Detken Long before the introduction of the euro there was an active debate among researchers, policy-makers and financial market participants over how the new European money would change the relative roles of currencies in the international monetary and financial system. A widely held view was that the euro's use in international capital markets would be the key element. Therefore, this paper provides a broad empirical examination of the major currencies' roles in international capital markets, with a special emphasis on the first year of the euro. A contribution is made as to how to measure these roles, both from the viewpoint of international financing and from that of international investment activities. Time series of these new measures are presented, including euro aggregates calculated up to six years back in time. The data allow for the identification of changes in the role of the euro during 1999 compared to the aggregate of euro predecessor currencies, net of intra-euro area assets/liabilities, since the start of stage 2 of EMU in 1994. A number of key factors determining the currency distribution of international portfolio investments, such as relative market liquidity and relative risk characteristics of assets, are also examined empirically. It turns out that for almost all important market segments for which data are available, the euro immediately became the second most widely used currency for international financing and investment. For the flow of international bond and note issuance it even slightly overtook the US dollar in the second half of 1999. The data also suggest that most of this early supply of euro bonds by non-euro area residents, clearly exceeding the euro-predecessor currency aggregate, is actually absorbed by euro area residents and not by outside investors so far. [source] HUMAN CAPITAL AND THE LABOR OF LEARNING: A CASE OF MISTAKEN IDENTITYEDUCATIONAL THEORY, Issue 2 2007Alexander M Sidorkin Specifically, human capital theorists underestimate the private cost of schooling by taking low-level manual labor as the basis for estimating students' forgone earnings. This does not take into consideration the nature of students' labor of learning. In the essay, Sidorkin describes student work as a form of labor, not an investment activity, and considers the implications such an understanding of student work has for school reform. [source] US Outward Foreign Direct Investment in the European Union and the Implementation of the Single Market: Empirical Evidence from a Cohesive FrameworkJCMS: JOURNAL OF COMMON MARKET STUDIES, Issue 5 2008FRAGKISKOS FILIPPAIOS In this article we investigate the determinants of US outward Foreign Direct Investment (FDI) in the European Union for the period 1982,2002. The data set allowed us to discern differences in the pattern of US FDI between EU core and EU periphery countries, as well as over different time periods during the last two decades. The results indicate that the US FDI pattern varies among different groups of countries and that there was a restructuring in multinational firms' investment activity after the implementation of the single market plan. Agglomeration factors, market size, qualified and productive labour and cost efficiency of local production seem to dominate in the location choice of US investors. [source] Altering Investment Decisions to Manage Financial Reporting Outcomes: Asset-Backed Commercial Paper Conduits and FIN 46JOURNAL OF ACCOUNTING RESEARCH, Issue 5 2008DANIEL A. BENS ABSTRACT We evaluate the manner in which sponsors of highly leveraged asset-backed commercial paper (ABCP) conduits responded to Financial Accounting Standards Board Interpretation No. 46 (FIN 46), Consolidation of Variable Interest Entities an Interpretation of ARB No. 51, and its Canadian counterpart Accounting Standards Board of Accounting Guideline 15 (AcG-15), Consolidation of Variable Interest Entities. By matching commercial paper investors with corporations seeking liquidity, ABCP sponsors facilitate a significant amount of short-term, securitized financing in the United States. FIN 46 and AcG-15 require sponsors to consolidate their ABCP conduits with their financial statements. We demonstrate that the volume of ABCP began to decline when FIN 46 was first proposed, and that this decline is primarily attributable to a reduction in North American banks' sponsorship of ABCP. We also demonstrate that North American banks entered into costly restructuring arrangements to avoid having to consolidate their conduits per the new accounting standards. Our results suggest that, in certain settings, accounting standards appear to have real effects on investment activity and product-market competition. [source] The Role of Uncertainty in Investment: An Examination of Competing Investment Models Using Commercial Real Estate DataREAL ESTATE ECONOMICS, Issue 1 2000A. Steven Holland Neoclassical investment decision criteria suggest that only the systematic component of total risk affects the rate of investment, as channeled through the built-asset price. Alternatively, option-based investment models suggest a direct role for total uncertainty in investment decisionmaking. To sort out uncertainty's role in investment, we specify and empirically estimate a structural model of asset-market equilibrium. Commercial real estate time-series data with two distinct measures of asset price and uncertainty are used to assess the competing investment models. Empirical results generally favor predictions of the option-based model and hence suggest that irreversibility and delay are important considerations to investors. Our findings also have implications for macroeconomic policy and for forecasts of cyclical investment activity. [source] The Limits of Financial GlobalizationTHE JOURNAL OF FINANCE, Issue 4 2005RENÉ M. STULZ ABSTRACT Despite the dramatic reduction in explicit barriers to international investment activity over the last 60 years, the impact of financial globalization has been surprisingly limited. I argue that country attributes are still critical to financial decision-making because of "twin agency problems" that arise because rulers of sovereign states and corporate insiders pursue their own interests at the expense of outside investors. When these twin agency problems are significant, diffuse ownership is inefficient and corporate insiders must co-invest with other investors, retaining substantial equity. The resulting ownership concentration limits economic growth, financial development, and the ability of a country to take advantage of financial globalization. [source] | ||||||||||