Essays in empirical corporate finance
Abstract/Contents
- Abstract
- This thesis studies how government regulation affects firms' financial and governance decisions. In the first chapter I examine how deregulation in the railroad industry affects CEO-firm matches and firms' performance. I exploit the 1980 Staggers Rail Act, which introduced competition to the highly regulated freight railroad industry. The results show that after the deregulation there was an increase in CEO turnover and in the percentage of CEOs with business education and with broader work experience. I also find that CEO turnover was less related to firm performance in the deregulated period. The next two chapters study the unintended consequences of two different types of financial regulation, which intended to protect consumers. In Chapter 2, I use the introduction of state deposit guarantee systems in the early 20th century as a quasi-natural experiment to study its effects on the banking system. I find that insured banks experienced higher growth rates than uninsured banks. However, I find no effects of deposit insurance on failure rates, or risk taking proxied by leverage and illiquid assets holdings. Finally, Chapter 3 analyzes the effects of double liability for banks' shareholders in the United States during the Great Depression. In case of a bank failure, shareholders subject to double liability could not only lose their equity, but an additional amount equal to the par value of their shares. My coauthors and I find that single-liability banks were riskier than double-liability banks in terms of their asset allocation. We also conclude that an unintended effect was the higher exit rates via merger or voluntary liquidation of double-liability banks. This is consistent with the hypothesis that in the presence of double liability, shareholders decide to liquidate their investment earlier to avoid risking their personal assets in case of failure.
Description
| Type of resource | text |
|---|---|
| Form | electronic; electronic resource; remote |
| Extent | 1 online resource. |
| Publication date | 2014 |
| Issuance | monographic |
| Language | English |
Creators/Contributors
| Associated with | Aldunate, Felipe |
|---|---|
| Associated with | Stanford University, Graduate School of Business. |
| Primary advisor | Jenter, Dirk |
| Thesis advisor | Jenter, Dirk |
| Thesis advisor | Koudijs, Peter |
| Thesis advisor | Pérez González, Francisco |
| Advisor | Koudijs, Peter |
| Advisor | Pérez González, Francisco |
Subjects
| Genre | Theses |
|---|
Bibliographic information
| Statement of responsibility | Felipe Aldunate. |
|---|---|
| Note | Submitted to the Graduate School of Business. |
| Thesis | Thesis (Ph.D.)--Stanford University, 2014. |
| Location | electronic resource |
Access conditions
- Copyright
- © 2014 by Felipe Eduardo Aldunate
- License
- This work is licensed under a Creative Commons Attribution Non Commercial 3.0 Unported license (CC BY-NC).
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