Legal Insider Trading and Stock Market Liquidity
Hans Degryse, Frank de Jong, Jérémie Lefebvre
De Economist,
No. 1,
2016
Abstract
This paper assesses the impact of legal trades by corporate insiders on the liquidity of the firm’s stock. For this purpose, we analyze two liquidity measures and one information asymmetry measure. The analysis allows us to study as well the effect of a change in insider trading regulation, namely the implementation of the Market Abuse Directive (European Union Directive 2003/6/EC) on the Dutch stock market. The first set of results shows that, in accordance with theories of asymmetric information, the intensity of legal insider trading in a given company is positively related to the bid-ask spread and to the information asymmetry measure. We also find that the Market Abuse Directive did not reduce significantly this effect. Secondly, analyzing liquidity and information asymmetry around the days of legal insider trading, we find that small and large capitalization stocks see their bid-ask spread and the permanent price impact increase when insiders trade. For mid-cap stocks, only the permanent price impact increases. Finally, we could not detect a significant improvement of these results following the change in regulation.
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Does Social Capital Matter in Corporate Decisions? Evidence from Corporate Tax Avoidance
Iftekhar Hasan, Chun-Keung (Stan) Hoi, Qiang Wu, Hao Zhang
Journal of Accounting Research,
No. 3,
2017
Abstract
We investigate whether the levels of social capital in U.S. counties, as captured by strength of civic norms and density of social networks in the counties, are systematically related to tax avoidance activities of corporations with headquarters located in the counties. We find strong negative associations between social capital and corporate tax avoidance, as captured by effective tax rates and book-tax differences. These results are incremental to the effects of local religiosity and firm culture toward socially irresponsible activities. They are robust to using organ donation as an alternative social capital proxy and fixed effect regressions. They extend to aggressive tax avoidance practices. Additionally, we provide corroborating evidence using firms with headquarters relocation that changes the exposure to social capital. We conclude that social capital surrounding corporate headquarters provides environmental influences constraining corporate tax avoidance.
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Non-linearity in the Finance-Growth Nexus: Evidence from Indonesia
Nuruzzaman Arsyad, Iftekhar Hasan, Wahyoe Soedarmono
International Economics,
August
2017
Abstract
This paper investigates the finance-growth nexus where bank credit is decomposed into investment, consumption, and working capital credit. From a panel dataset of provinces in Indonesia, it documents that higher financial development measured by financial deepening and financial intermediation exhibits an inverted U-shaped relationship with economic growth. This non-linear effect of financial deepening is driven by both investment credit and consumption credit. These results suggest that too much investment credit and, to a lesser extent, consumption credit are detrimental to economic growth. Ultimately, only financial intermediation associated with working capital credit has a positive and monotonic impact on economic growth.
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Social Capital and Debt Contracting: Evidence from Bank Loans and Public Bonds
Iftekhar Hasan, Chun-Keung (Stan) Hoi, Qiang Wu, Hao Zhang
Journal of Financial and Quantitative Analysis,
No. 3,
2017
Abstract
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Industry and Construction Industry Surveys 1999 – Documentation of main results
Doris Gladisch, Bärbel Laschke, Brigitte Loose, Udo Ludwig
IWH Discussion Papers,
No. 111,
2000
Abstract
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Schrumpfende Städte - schrumpfende Wirtschaft? Der Fall Ostdeutschland
Peter Franz
Deutsche Zeitschrift für Kommunalwissenschaften,
No. 1,
2004
Abstract
In der Diskussion über die Zukunft schrumpfender Städte wird häufig unterstellt, rückgängige Einwohnerzahlen würden auch mit zurückbleibendem wirtschaftlichen Wachstum einhergehen. Der Beitrag setzt sich damit auseinander, welche potenziellen wechselseitigen Einflüsse zwischen demographischen Größen und ökonomischen Wachstumsfaktoren bzw. indikatoren bestehen. Am Beispiel der großen ostdeutschen Städte wird gezeigt, dass in den Zeiträumen 1994-96 und 1998-2000 von einer Parallelität von demographischer und ökonomischer Schrumpfung noch nicht die Rede sein kann. Allerdings ist in zahlreichen Städten das Muster eines Wachstums ohne Beschäftigungseffekte (jobless growth) identifizierbar. Darüber hinaus lassen die Ergebnisse erkennen, dass die ökonomischen Entwicklungspfade der Städte zunehmend unterschiedlich werden.
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Comply or Explain - Die Akzeptanz von Corporate Governance Kodizes in Deutschland und Großbritannien
Nicole Steinat
Beiträge zum Transnationalen Wirtschaftsrecht,
No. 39,
2005
Abstract
Die zahlreichen Unternehmenszusammenbrüche, Bilanzskandale sowie der Absturz der Indizes an den Kapitalmärkten zu Beginn des neuen Jahrtausends verstärkten die Diskussion um die Unternehmensführung und -kontrolle in Deutschland und führten schließlich vor nunmehr fast drei Jahren zur Verabschiedung des deutschen Corporate Governance Kodex. Dieser Verhaltenskodex, der sich an börsennotierte Gesellschaften richtet, greift internationale Kritikpunkte an der deutschen Unternehmensverfassung auf und soll somit den Standort Deutschland für ausländische Investoren attraktiver machen und das Vertrauen der Anleger zurückgewinnen. Ob dies gelungen ist, soll in dieser Studie ebenso untersucht werden, wie die Frage, ob und in welchen Bereichen der Kodex mit seinen Anforderungen von den Unternehmen akzeptiert wird...
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Staggered Completion of the European Banking Union: Transposition Dates of the BRRD
Michael Koetter, Thomas Krause, Eleonora Sfrappini, Lena Tonzer
IWH Technical Reports,
No. 1,
2021
Abstract
In May 2014, the European Commission published the Bank Recovery and Resolution Directive (BRRD). The directive introduces rules on bank resolution and restructuring including a bailin tool. It constitutes the legal foundation underlying the Single Resolution Mechanism (SRM). Member countries of the European Union (EU) had to transpose this directive into national law by 31 December 2014 and implement the rules on resolution and restructuring of failing banks from 1 January 2015 onwards. However, many countries delayed the implementation. We assemble a dataset on national transposition dates of the BRRD across the EU-27 countries.
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Konjunktur aktuell: Zurück ins Leben – Zunahme persönlicher Kontakte beflügelt wirtschaftliche Aktivität
Konjunktur aktuell,
No. 2,
2021
Abstract
Im Sommer 2021 expandiert die weltwirtschaftliche Produktion kräftig, hauptsächlich dank rasch voranschreitender Impfkampagnen in den fortgeschrittenen Volkswirtschaften des Westens. Geld- und Finanzpolitik bleiben dort expansiv, und die konjunkturelle Dynamik wird auch in den kommenden Quartalen hoch sein. In vielen Schwellen- und Entwicklungsländern wird die Pandemie hingegen das ganze Jahr 2021 über noch auf der Wirtschaft lasten. In Deutschland sind die konjunkturellen Aussichten günstig, weil die Corona-Restriktionen nach und nach aufgehoben werden. Das BIP wird 2021 um 3,9% und 2022 um 4,0% zunehmen. Die Produktion in Ostdeutschland dürfte in beiden Jahren um jeweils 3% zulegen.
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Do We Want These Two to Tango? On Zombie Firms and Stressed Banks in Europe
Manuela Storz, Michael Koetter, Ralph Setzer, Andreas Westphal
ECB Working Paper,
2017
Abstract
We show that the speed and type of corporate deleveraging depends on the interaction between corporate and financial sector health. Based on granular bank-firm data pertaining to small and medium-sized enterprises (SME) from five stressed and two non-stressed euro area economies, we show that “zombie” firms generally continued to lever up during the 2010–2014 period. Whereas relationships with stressed banks reduce SME leverage on average, we also show that zombie firms that are tied to weak banks in euro area periphery countries increase their indebtedness even further. Sustainable economic recovery therefore requires both: deleveraging of banks and firms.
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