Coups d’état and the cost of debt

Balima, Hippolyte

doi:10.1016/j.jce.2020.04.001

Cited by 42 publications

(25 citation statements)

References 35 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…By adjusting for a vast variety of variables that may affect the treatment and control groups differently, entropy balancing corrects for self-selection caused by measurable characteristics. Entropy balancing, in particular, offers a high degree of covariate balance by utilizing a reweighting approach that directly includes covariate balance into the weight function applied to the sample units [ 21 , 47 ]. Entropy balancing imposes a number of equilibrium constraints, requiring that the matching covariate distributions of the treatment and control groups in the preprocessed data match perfectly at all prespecified moments [ 21 , 47 ].…”

Section: Resultsmentioning

confidence: 99%

“…Entropy balancing, in particular, offers a high degree of covariate balance by utilizing a reweighting approach that directly includes covariate balance into the weight function applied to the sample units [ 21 , 47 ]. Entropy balancing imposes a number of equilibrium constraints, requiring that the matching covariate distributions of the treatment and control groups in the preprocessed data match perfectly at all prespecified moments [ 21 , 47 ]. Hainmueller [ 21 ] offers more detailed information regarding entropy balancing.…”

Section: Resultsmentioning

confidence: 99%

See 1 more Smart Citation

Does board gender diversity weaken or strengthen executive risk-taking incentives?

2021

View full text Add to dashboard Cite

We investigate the effect of board gender diversity on managerial risk-taking incentives. Our results demonstrate that companies with stronger board gender diversity provide more powerful executive risk-taking incentives. It appears that female directors’ risk aversion exacerbates managers’ risk aversion, resulting in a sub-optimal level of risk-taking. To offset this tendency for too little risk, companies are induced to provide stronger risk-taking incentives. Specifically, an increase in board gender diversity by one standard deviation raises vega by 10.3%. Further analysis corroborates the results, including propensity score matching, entropy balancing, and an instrumental-variable analysis. Endogeneity appears to be unlikely, suggesting that female directors are not merely associated with, but probably bring about stronger risk-taking incentives.

show abstract

Section: Resultsmentioning

confidence: 99%

Section: Resultsmentioning

confidence: 99%

Does board gender diversity weaken or strengthen executive risk-taking incentives?

2021

View full text Add to dashboard Cite

show abstract

“…may affect the treatment and control groups differently, entropy balancing corrects for selfselection caused by measurable characteristics. Entropy balancing, in particular, offers a high degree of covariate balance by utilizing a reweighting approach that directly includes covariate balance into the weight function applied to the sample units [21,47]. Entropy balancing imposes a number of equilibrium constraints, requiring that the matching covariate distributions of the treatment and control groups in the preprocessed data match perfectly at all prespecified moments [21,47].…”

Section: Plos Onementioning

confidence: 99%

Does board gender diversity weaken or strengthen executive risk-taking incentives?

2021

View full text Add to dashboard Cite

We investigate the effect of board gender diversity on managerial risk-taking incentives. Our results demonstrate that companies with stronger board gender diversity provide more powerful executive risk-taking incentives. It appears that female directors' risk aversion exacerbates managers' risk aversion, resulting in a sub-optimal level of risk-taking. To offset this tendency for too little risk, companies are induced to provide stronger risk-taking incentives. Specifically, an increase in board gender diversity by one standard deviation raises vega by 10.3%. Further analysis corroborates the results, including propensity score matching, entropy balancing, and an instrumental-variable analysis. Endogeneity appears to be unlikely, suggesting that female directors are not merely associated with, but probably bring about stronger risk-taking incentives.

show abstract

“…12 Democratizations themselves do produce growth benefits in both short- (Rodrik and Wacziarg, 2005) and long-run (Papaioannou and Siourounis, 2008). Even if he does not care about broad prosperity, a dictator might want to democratize to avoid facing mass protests or internal coups, which are costly even when unsuccessful (Balima, 2020). Partial democratization might be desirable if it provides a commitment device to protect property rights and thus improve agents' incentives (Acemoglu, 2003;Acemoglu and Robinson, 2005;Myerson, 2008).…”

Section: The Challenge Of Democratizationmentioning

confidence: 99%