JOURNAL OF ECONOMICS AND BUSINESS最新文献

In this theoretical paper, we examine the risk-shifting problem between lenders and a firm running projects in two different environments. In a synchronous environment, the firm introduces two new 2-period projects that both begin and end on the same date and hence have a new start date in odd-numbered periods. In an asynchronous environment, the firm introduces one new 2-period project in every period: This process creates an overlapping structure for the projects. We show that the set of parameters that allow for reputation-supported lending is larger if projects are asynchronous rather than synchronous. The findings can be generalized to other forms of moral hazard.

This paper unravels the board structure of 42,146 firms in China and 21 European emerging markets and empirically examines its determinants. Structural estimation of simultaneous equation models that endogenize board size, outside board chairmanship, and board independence produced evidence supporting our predictions about potential factors that determine these three variables, which are based on previous studies of developed economies. However, we found striking differences in the combination of factors that strongly affect board structure between China and European emerging markets and between public and private companies. Furthermore, the empirical results in this paper suggest that the close interdependence among board components requires analytical consideration.

In response to scepticism about the benefits of patenting in small firms, this paper provides new evidence on the relationship between financial performance in SMEs and patents, distinguishing between applications and granted patents. Empirical analyses show that firms with a patent application still pending five years after the filing date report higher sales than comparable firms who have not filed. Yet, we also find that the monopoly rights attached to granted patents do not result in higher sales than simply filing for a patent. This analysis leads us to infer that the activities performed during the patent application process improve firm knowledge stocks and absorptive capacity, in turn promoting performance above and beyond the status quo. SME managers should find in this study solid empirical evidence supporting well-informed decision-making over patenting.

This paper examines the relationship between government-funded R&D grants in the US and pharmaceutical firm innovation. We find a positive and robust relationship between grant receipt, future patents, and medical innovations. The strength of the relationship between R&D grants and pharmaceutical innovation is attenuated by firm lobbying but strengthened by industry competition, geographic dispersion, and leverage. Investors recognize the unequal value added by grant receipt. R&D grant receipt also impacts future financial performance and sales growth. Our results indicate that the relationship between R&D and innovation is more nuanced than previously identified.

We explore the relationship between traditional microfinance screening variables and a new one (job experience) for a Brazilian fintech microcredit firm, which developed a strategy that targets poor workers using the clients’ job contracts as collateral and by implementing a 100% online application. A total of 911 contracts were analyzed. Unlike previous studies, we show that the main variable used for screening is job experience: borrowers with lengthy experience in their current jobs received larger loans with lower interest rates while maintaining smaller delinquencies. Additionally, we find that women receive lower interest rates and longer loan durations because of their job experience. We theorize that job experience helps to reduce the “collateral gap” between genders in Brazilian microcredit markets.