662 records from EconBiz based on author Name

1. Idiosyncrasy as a leading indicator

Morck, Randall; Yeung, Bernard; Zhang, Lu Y.;
2023
Type: Aufsatz in Zeitschrift; Article in journal;
Availability: Link

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2. What do we learn from stock price reactions to China's first announcement of anti-corruption reforms?

abstract

China's markets gained 3.86% around December 4, 2012, when the Party announced anti-corruption reforms. State-owned enterprises (SOEs) with higher past entertainment and travel costs (ETC) gained more. NonSOEs gained in more liberalized provinces, especially those with high past ETC, productivity, growth opportunities, and external financing. NonSOEs lost in the least liberalized provinces, especially those with high past ETC. These findings support investors' expect reduced official corruption to create value overall, reduce SOE waste, lower bureaucratic barriers to efficient resource allocation where markets function, and impede business in unliberalized provinces, where “getting things done” still requires investment in greasing bureaucratic gears.

Lin, Chen; Morck, Randall; Yeung, Bernard; Zhao, Xiaofeng;
2023
Type: Aufsatz in Zeitschrift; Article in journal;
Availability: Link

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3. Idiosyncrasy as a Leading Indicator

abstract

Disequilibrating macro shocks affect different firms' prospects differently, increasing idiosyncratic variation in forward-looking stock returns before affecting economic growth. Consistent with most such shocks from 1947 to 2020 enhancing productivity, increased idiosyncratic stock return variation forecasts next-quarter real GDP growth, industrial production growth, and consumption growth both in-sample and out-of-sample. These effects persist after controlling for other leading economic indicators

Morck, Randall; Yeung, Bernard; Zhang, Lu Y.;
2022
Type: Arbeitspapier; Working Paper; Graue Literatur; Non-commercial literature;
Availability: Link Link

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4. Personal Bankruptcy Law and Innovation around the World

abstract

Because corporate limited liability protects founder's personal assets, creditors often require founders of new, small and risky firms to contract around limited liability by pledging their personal assets as collateral for loans to their firms. This makes personal bankruptcy law (PBL) relevant to corporate finance. We find that pro-debtor PBL reforms increase the number of patents filed, citations to those patents, and début patents by firms with no previous patents. These reforms also redistribute innovation across industries in closer alignment to its distribution in the U.S., which we take to approximate industry innovative potential. These effects are driven by firms without histories of high-intensity patenting, and are damped in countries that impose minimum capital requirements on new firms. Firms with largescale legacy technology may avoid radical innovations that devalue that technology. Consequently, new, initially small and risky firms often develop the disruptive innovations that contribute most to economic growth. Consistent with this, we also find pro-debtor PBL reforms increasing value-added growth rates across all industries, and by larger margins in industries with more innovation potential. Our difference-in-differences regressions use patents and PBL reforms for 33 countries from 1990 to 2002, with subsequent years used to measure citations to patents in this period

Cumming, Douglas J.; Morck, Randall; Rong, Zhao; Zhang, Minjie;
2024
Type: Arbeitspapier; Working Paper; Graue Literatur; Non-commercial literature;
Availability: Link Link

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5. Business Groups : Panics, Runs, Organ Banks and Zombie Firms

abstract

Business groups often contain banks or near banks that can protect group firms from economic shocks. A group bank subordinate to other group firms can become an "organ bank" that selflessly bails out distressed group firms and anticipates a government bailout. A group bank subordinating other group firms can extend loans to suppress their risk-taking to default risk, preserving risk-averse low-productivity zombie firms. Actual business groups can fall between these polar cases. Subordinated group banks magnify risk-taking; subordinating banks suppress risk-taking; yet both distortions promote business group firms' survival. Limiting intragroup income and risk shifting, severing banks from business groups, or dismantling business groups may mitigate both distortions; but also limits business groups' internal markets, thought important where external markets work poorly

Colpan, Asli M.; Morck, Randall;
2021
Type: Arbeitspapier; Working Paper; Graue Literatur; Non-commercial literature;
Availability: Link Link

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6. Kindleberger Cycles & Economic Growth : Method in the Madness of Crowds?

abstract

Because positive spillovers give investment in innovation a social rate of return several times higher than its internal rate of return to innovators, innovation is chronically underfunded. Recurrent manias, panics and crashes in stock markets inundate "hot" new technologies with capital. To the extent that manias compensate for chronic underinvestment in innovation, competition at the economy-level may favor institutions and behavioral norms conducive to innovation-related bubbles despite ultimately low returns to the hindmost investors

Morck, Randall;
2021
Type: Arbeitspapier; Working Paper; Graue Literatur; Non-commercial literature;
Availability: Link Link
Citations: 2 (based on OpenCitations) Cited By

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7. Indexing and the Incorporation of Exogenous Information Shocks to Stock Prices

abstract

Savings increasingly flow to low-cost index funds, which simply buy and hold the stocks in a major index, such as the S&P 500. Increased indexing impedes incorporation of idiosyncratic information into stock prices. We limit endogeneity bias by showing that exogenous idiosyncratic currency shocks induce smaller idiosyncratic moves in the stock prices of currency-sensitive firms in proximate time windows when in the index than when not in it. Increased indexing thus appears to be undermining the efficient markets hypothesis that supports its viability

Morck, Randall; Yavuz, Mehmet Deniz;
2023
Type: Arbeitspapier; Working Paper; Graue Literatur; Non-commercial literature;
Availability: Link Link

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8. Corporate governance, business group governance and economic development traps

Dau, Luis; Morck, Randall; Yeung, Bernard;
2020
Type: Graue Literatur; Non-commercial literature; Arbeitspapier; Working Paper;
Availability: Link

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9. Corporate Governance, Business Group Governance and Economic Development Traps

abstract

Every firm in a developed economy relies on the mere existence of countless other firms to keep prices competitive up and down all supply chains. Without this network externality, no firm forms; and without many firms, no network forms; locking in a low-income trap. Business group governance supersedes corporate governance in most developing economies and in the rapid catch-up development phases of most high-income economies by hierarchically coordinating firms in multiple industries, internalizing this network externality. High-income economies grow via creative destruction - creative firms imposing a negative externality upon firms they destroy or disrupt, but a larger positive innovation-related externality upon the whole economy. Business groups avoid creative self-destruction, innovation by one group firm that disrupts another. Corporate governance supersedes business group governance in high-income economies to facilitate productivity growth. If business group governance does not retreat, productivity growth is impaired and a middle-income trap can result

Dau, Luis; Morck, Randall; Yeung, Bernard;
2020
Availability: Link Link
Citations: 2 (based on OpenCitations) Cited By

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10. Asset Prices, Corporate Actions, and Bank of Japan Equity Purchases

abstract

Since 2010, the Bank of Japan (BOJ) has purchased stocks to boost domestic firms' valuations to increase GDP growth. The stock return elasticity with respect to BOJ purchases relative to the previous month's market capitalization is around 1.6 on the day of the purchase and decreases across longer horizons. Over a quarter, BOJ share purchases worth 1% of total assets correspond to an increase of 1% in returns and a 0.27% increase in total assets. BOJ share purchases predict equity issuances but not debt issuances. However, this largely reflects increased cash and short-term investments. This unconventional monetary stimulus thus may boost share prices and encourages equity issuances, but is ultimately not well transmitted into real tangible capital investment

Charoenwong, Ben; Morck, Randall; Wiwattanakantang, Yupana;
2019
Availability: Link Link
Citations: 5 (based on OpenCitations) Cited By

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