06.09.2023 • 22/2023
IWH-Insolvenztrend: Etwas weniger Firmenpleiten im August, im nächsten Quartal wohl deutlich mehr
Die Zahl der Insolvenzen von Personen- und Kapitalgesellschaften lag im August erneut über dem Niveau vor der Corona-Pandemie, ging jedoch den zweiten Monat in Folge leicht zurück. Für das vierte Quartal sind steigende Insolvenzzahlen wahrscheinlich.
Steffen Müller
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Ownership Structure and the Cost of Debt: Evidence From the Chinese Corporate Bond Market
Sris Chatterjee, Xian Gu, Iftekhar Hasan, Haitian Lu
Journal of Empirical Finance,
September
2023
Abstract
Drawing upon evidence from the Chinese corporate bond market, we study how ownership structure affects the cost of debt for firms. Our results show that state, institutional and foreign ownership formats reduce the cost of debt for firms. The benefits of state ownership are accentuated when the issuer is headquartered in a province with highly developed market institutions, operates in an industry less dominated by the state or during the period after the 2012 anti-corruption reforms. Institutional ownership provides the most benefits in environments with lower levels of marketization, especially for firms with low credit quality. Our evidence sheds light on the nexus of ownership and debt cost in a political economy where state-owned enterprises (SOEs) and non-SOEs face productivity and credit frictions. It is also illustrative of how the market environment interacts with corporate ownership in affecting the cost of bond issuance.
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Committing to Grow: Privatizations and Firm Dynamics in East Germany
Ufuk Akcigit, Harun Alp, André Diegmann, Nicolas Serrano-Velarde
IWH Discussion Papers,
No. 17,
2023
Abstract
This paper investigates a unique policy designed to maintain employment during the privatization of East German firms after the fall of the Iron Curtain. The policy required new owners of the firms to commit to employment targets, with penalties for non-compliance. Using a dynamic model, we highlight three channels through which employment targets impact firms: distorted employment decisions, increased productivity, and higher exit rates. Our empirical analysis, using a novel dataset and instrumental variable approach, confirms these findings. We estimate a 22% points higher annual employment growth rate, a 14% points higher annual productivity growth, and a 3.6% points higher probability of exit for firms with binding employment targets. Our calibrated model further demonstrates that without these targets, aggregate employment would have been 15% lower after 10 years. Additionally, an alternative policy of productivity investment subsidies proved costly and less effective in the short term.
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10.08.2023 • 20/2023
IWH-Insolvenztrend: Zahl der Insolvenzen bleibt hoch
Die Zahl der Insolvenzen von Personen- und Kapitalgesellschaften lag im Juli erneut über dem Niveau vor der Corona-Pandemie. Der Anstieg bei den Insolvenzzahlen ist jedoch vorerst zu Ende.
Steffen Müller
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Media Response
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