On the Nonexclusivity of Loan Contracts: An Empirical Investigation
Hans Degryse, Vasso Ioannidou, Erik von Schedvin
Management Science,
No. 12,
2016
Abstract
We study how a bank's willingness to lend to a previously exclusive firm changes once the firm obtains a loan from another bank ("outside loan") and breaks an exclusive relationship. Using a difference-in-difference analysis and a setting where outside loans are observable, we document that an outside loan triggers a decrease in the initial bank's willingness to lend to the firm, i.e., outside loans are strategic substitutes. Consistent with concerns about coordination problems and higher indebtedness, we find that this reaction is more pronounced the larger the outside loan and it is muted if the initial bank's existing and future loans retain seniority and are protected with valuable collateral. Our results give a benevolent role to transparency enabling banks to mitigate adverse effects from outside loans. The resulting substitute behavior may also act as a stabilizing force in credit markets limiting positive comovements between lenders, decreasing the possibility of credit freezes and financial crises.
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Foreign Direct Investment: The Role of Institutional and Cultural Determinants
Stefan Eichler, N. Lucke
Applied Economics,
No. 11,
2016
Abstract
Using panel data for 29 source and 65 host countries in the period 1995–2009, we examine the determinants of bilateral FDI stocks, focusing on institutional and cultural factors. The results reveal that institutional and cultural distance is important and that FDI has a predominantly regional aspect. FDI to developing countries is positively affected by better institutions in the host country, while foreign investors prefer to invest in developed countries that are more corrupt and politically unstable compared to home. The results indicate that foreign investors prefer to invest in countries with less diverse societies than their own.
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Taxation and the International Mobility of Inventors
Ufuk Akcigit, Salomé Baslandze, Stefanie Stantcheva
American Economic Review,
No. 10,
2016
Abstract
We study the effect of top tax rates on “superstar” inventors’ international mobility since 1977, using panel data on inventors from the US and European Patent Offices. We exploit the differential impact of changes in top tax rates on inventors of different qualities. Superstar inventors' location choices are significantly affected by top tax rates. In our preferred specification, the elasticity to the net-of-tax rate of the number of domestic superstar inventors is around 0.03, while that of foreign superstar inventors is around 1. These elasticities are larger for inventors in multinational companies. An inventor is less sensitive to taxes in a country if his company performs a higher share of its research there.
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The Importance of Localized Related Variety for International Diversification of Corporate Technology
Eva Dettmann, Iciar Dominguez Lacasa, Jutta Günther, Björn Jindra
Regional Studies,
No. 10,
2016
Abstract
Die Bedeutung der lokalisierten verbundenen Vielfalt für die internationale Diversifizierung von Unternehmenstechnik.
Die Internationalisierung der Forschung und Entwicklung hat sich in den letzten Jahren erheblich verstärkt. In diesem Beitrag analysieren wir die Determinanten der räumlichen Verteilung von ausländischen Technikaktivitäten in 96 deutschen Regionen. Zur Identifizierung ausländischer Technikaktivitäten wird das Konzept des grenzübergreifenden Eigentums auf Patentanträge angewandt. Die wichtigste Prämisse lautet, dass Regionen mit einer höheren verbundenen Vielfalt von Technikaktivitäten zwischen den einzelnen Sektoren mehr ausländische Technikaktivitäten anziehen. Aus den Schätzungen geht hervor, dass dies auf Regionen zutrifft, die sich durch ein hohes Maß an genereller technischer Stärke auszeichnen. Dies lässt darauf schließen, dass verbundene Vielfalt die technische Diversifizierung von ausländischen Unternehmen in Regionen an der Spitze der geografischen Hierarchie begünstigt.
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Is the 'Central German Metropolitan Region' Spatially Integrated? An Empirical Assessment of Commuting Relations
Albrecht Kauffmann
Urban Studies,
No. 9,
2016
Abstract
The 'Central German Metropolitan Region' is a network of cities and their surroundings, located in the three East-German states of Saxony, Saxony-Anhalt and Thuringia. It was founded to bring the bundled strengths of these cities into an inter-municipal cooperation, for making use of the possible advantages of a polycentric region. As theory claims, a precondition for gains from polycentricity is spatial integration of the region. In particular, markets for high skilled labour should be integrated. To assess how this precondition is fulfilled in Central Germany, in the framework of a doubly constrained gravity model the commuting relations between the functional regions of the (until 2013) 11 core cities of the network are analysed. In particular for higher educated employees, the results display that commuting relations are determined not only by distance, but also by the state borders that cross the area.
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Mapping Potentials for Input-Output Based Innovation Flows in Industrial Clusters – An Application to Germany
Matthias Brachert, Hans-Ulrich Brautzsch, Mirko Titze
Economic Systems Research,
No. 4,
2016
Abstract
Our paper pursues two aims: first, it presents an approach based on input–output innovation flow matrices to study intersectoral innovation flows within industrial clusters. Second, we apply this approach to the identification of structural weaknesses in East Germany relative to the western part of the country. The case of East Germany forms an interesting subject because while its convergence process after unification began promisingly in the first half of the 1990s, convergence has since slowed down. The existing gap can now be traced mainly to structural weaknesses in the East German economy, such as the absence of strong industrial cluster structures. With this in mind, we investigate whether East Germany does in fact reveal the abovementioned structural weaknesses. Does East Germany possess fewer industrial clusters? Are they less connected? Does East Germany lack specific clusters that are also important for the non-clustered part of the economy?
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Support for Public Research Spin-offs by the Parent Organizations and the Speed of Commercialization
D. Göktepe-Hultén, Viktor Slavtchev
Journal of Technology Transfer,
No. 6,
2016
Abstract
We empirically analyze whether support by the parent organization in the early (nascent and seed) stage speeds up the process of commercialization and helps spin-offs from public research organizations generate first revenues sooner. To identify the impact of support by the parent organization, we apply multivariate regression techniques as well as an instrumental variable approach. Our results show that support in the early stage by the parent organization can speed up commercialization. Moreover, we identify two distinct channels—the help in developing a business plan and in acquiring external capital—through which support by the parent organization can enable spin-offs to generate first revenues sooner.
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Lend Global, Fund Local? Price and Funding Cost Margins in Multinational Banking
Rients Galema, Michael Koetter, C. Liesegang
Review of Finance,
No. 5,
2016
Abstract
In a proposed model of a multinational bank, interest margins determine local lending by foreign affiliates and the internal funding by parent banks. We exploit detailed parent-affiliate-level data of all German banks to empirically test our theoretical predictions in pre-crisis times. Local lending by affiliates depends negatively on price margins, the difference between lending and deposit rates in foreign markets. The effect of funding cost margins, the gap between local deposit rates faced by affiliates abroad and the funding costs of their parents, on internal capital market funding is positive but statistically weak. Interest margins are central to explain the interaction between internal capital markets and foreign affiliates lending.
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Too connected to fail? Wie die Vernetzung der Banken staatliche
Rettungsmaßnahmen vorhersagen kann
Friederike Altgelt, Michael Koetter
Wirtschaft im Wandel,
No. 4,
2017
Abstract
Seit der globalen Finanzkrise 2007/2008 liegt aufgrund ihrer Schlüsselrolle für ein funktionierendes Finanzsystem ein besonderer Fokus auf den so genannten systemrelevanten Finanzinstitutionen (systemically important financial institutions, SIFIs). Neben der Größe von Finanzinstitutionen ist auch das Ausmaß ihrer Vernetzung im internationalen Finanzsystem entscheidend für die Klassifikation als systemrelevant. Obwohl die Vernetzung von Banken untereinander in der Regel schwer zu messen ist, kann sie aus der Entwicklung von Prämien von Kreditausfallversicherungen (den so genannten Credit Default Swap (CDS) Spreads) und Aktienrenditen abgeleitet werden. Dieser Beitrag untersucht, inwieweit sich mit Hilfe der sich daraus ergebenden Co-Crash-Probability vor der Finanzkrise vorhersagen lässt, welche Finanzinstitutionen während der Krise Teil von staatlichen Rettungsprogrammen (bailout programmes) wurden.
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The Political Economy of Financial Systems: Evidence from Suffrage Reforms in the Last Two Centuries
Hans Degryse, Thomas Lambert, Armin Schwienbacher
Economic Journal,
No. 611,
2018
Abstract
Voting rights were initially limited to wealthy elites providing political support for stock markets. The franchise expansion induces the median voter to provide political support for banking development, as this new electorate has lower financial holdings and benefits less from the riskiness and financial returns from stock markets. Our panel data evidence covering the years 1830–1999 shows that tighter restrictions on the voting franchise induce greater stock market development, whereas a broader voting franchise is more conducive to the banking sector, consistent with Perotti and von Thadden (2006). The results are robust to controlling for other institutional arrangements and endogeneity.
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