Contingent capital, Tobin’s <mml:math xmlns:mml="http://www.w3.org/1998/Math/MathML" display="inline" id="d1e485" altimg="si196.svg"><mml:mi>q</mml:mi></mml:math> and corporate capital structure

Yang, Bo; Gan, Liu

doi:10.1016/j.najef.2020.101305

Cited by 7 publications

(4 citation statements)

References 20 publications

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“…B. Yang and Gan (2021) examine the impact of CoCo financing on a firm's Tobin's Q. Avdjiev et al (2020) undertake the first comprehensive empirical analysis of bank CoCo issues, a market segment that comprises over 730 instruments totaling $521 billion.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Barucci and Del Viva (2012) analyze the optimal capital structure of a bank issuing countercyclical CoCos, that is, the notes that will convert into common shares in a recession. B. Yang and Gan (2021) examine the impact of CoCo financing on a firm's Tobin's Q. Avdjiev et al (2020) undertake the first comprehensive empirical analysis of bank CoCo issues, a market segment that comprises over 730 instruments totaling $521 billion.…”

Section: Introductionmentioning

confidence: 99%

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Pricing contingent convertibles with idiosyncratic risk

Wang

Yang

Zeng

2023

Int J of Economic Theory

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We consider capital structure including equity, straight bonds (SBs), and contingent convertibles (CoCos) for nonfinancial firms. We price equity and CoCos by a utility‐based method. We show that benefits from issuing CoCos increase dramatically with idiosyncratic risk and risk aversion. The firm value is concave in CoCos' conversion ratio and the optimal conversion ratio increases with risk aversion and idiosyncratic risk. If risk aversion is sufficiently high, shareholders' risk‐shifting incentives disappear, and the firm issues less CoCos and equity and more SBs as idiosyncratic risk rises. The higher the idiosyncratic risk or risk aversion, the higher the leverage.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Pricing contingent convertibles with idiosyncratic risk

Wang

Yang

Zeng

2023

Int J of Economic Theory

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“…Enterprise value index (TOBINQ): Tobin's Q is the value indicator of an enterprise [31]. It is the ratio of the company's market value to the replacement cost of assets.…”

Section: Variable Definitionmentioning

confidence: 99%

The Influence of Government Subsidies on the Efficiency of Technological Innovation: A Panel Threshold Regression Approach

Chen

Fan

2022

Sustainability

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As a typical technology-intensive industry, the renewable energy industry is a standard sample for scholars to study the R&D innovation of enterprises. At present, the industry is strongly supported by the government subsidy policy in China and has developed rapidly in recent years. Its own financing constraints and lack of innovation power are also the main problems for the development of renewable energy enterprises. Taking A-share renewable energy enterprises from 2016 to 2020 as the research object, this paper constructs a panel model to empirically study the relationship between government subsidies and enterprise innovation efficiency. The findings are as follows. First, government subsidies can significantly promote the innovation efficiency of enterprises; second, the government subsidy has an obvious double threshold effect on the innovation efficiency of enterprises, and when the government subsidy is in a certain range, the subsidy effect is the best; third, the government subsidy effect of non-state-owned renewable energy enterprises is better than that of state-owned enterprises; the effect of government subsidies for renewable energy enterprises in the central and western regions is better than that in the eastern region. The threshold effect of government subsidies on enterprise innovation efficiency is also quite different.

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“…(Korajczyk & Levy, 2003;Bastos, Nakamura & Basso, 2009;Bokpin, 2009;Sett & Sarkhel, 2010;Duan, Chik & Liu, 2012;Camara, 2012, Jinji, Zhang & Haruna, 2019Tanaka, et. al, 2020;Yang & Gan, 2021. The latest study on the Covid-19 vaccine done by Shrotri, Swinnen, Kampmann & Parker (2021) hopefully can treat and eliminate the pandemic for spreading and recovery processes by mitigating the issue in increasing unemployment rate at the global level. Here, non-pharmaceutical interventions have been the mainstay of epidemic control to date, vaccination is likely to constitute the definitive, long-term defence strategy against SARS-CoV-2 morbidity, mortality, and transmission, offering the best hope of a return to normal life.…”

Section: Literature Reviewmentioning

confidence: 99%

Relationship between Covid-19 pandemic and firm’s performance towards unemployment across countries

Saad¹

2021

TURCOMAT

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As a result of the consequences of the Covid-19 pandemic, stock market players issued their quick response on how coronavirus has affected the performance of firms whereby most of the affected sectors are airlines, tourism, hotels, transportation and many more. This has led to an increase in the unemployment rate worldwide. Considering this global issue, this study was aimed at investigating the relationship between unemployment with a number of confirmed cases of Covid-19 and firms’ performance as well as the controlling factors across seven (7) countries. Secondary data were utilized with the data obtained from Bloomberg and Worldometers website. The dataset for dependent as proxy by unemployment rate and explanatory variables proxies by COVID-19 and firm’s performance were then tested using multivariate regression approach. Finally, from the study, it is suggested that an increase in the number of Covid-19 cases will affect business performance as controlled by macroeconomics factors which lead to a significant positive relationship between the unemployment rates in all the countries of this study. This factor may affect the government’s decision to implement the Movement Control Order (MCO), for instance by the Malaysian Government. By Covid-19 vaccine development in the market nowadays, hopefully, the spread can be mitigated and firms’ performance can return to normalcy to avoid increasing rate of unemployment in the world.

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Contingent capital, Tobin’s q and corporate capital structure

Cited by 7 publications

References 20 publications

Pricing contingent convertibles with idiosyncratic risk

Pricing contingent convertibles with idiosyncratic risk

The Influence of Government Subsidies on the Efficiency of Technological Innovation: A Panel Threshold Regression Approach

Relationship between Covid-19 pandemic and firm’s performance towards unemployment across countries

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