Annual Conference

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Economic Transformation of Asia

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May 2017

Product Market Development and Business Group Affiliation Value: Evidence from an Emerging Market

Narahari HANSOGE, Vijaya B. MARISETTY, Poonam SINGH
In this paper, we attempt to understand whether business group affiliation continues to create value with improvements in institutional environment, especially with increased product market competition. This question comes at a time when there is growing awareness that business groups dominate produ...
Keywords: business groups, Horizontal and Vertical Integration, Deep Pockets and Indian Competition Act, 2002
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Annual Conference

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Corporate Finance, Senior Fellows/Fellows

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May 2014

Product Market Competition Shocks, Firm Performance, and CEO Turnover

Sudipto DASGUPTA, Xi LI, Albert WANG
We examine the effect of competition shocks induced by major industry-level tariff cuts on forced CEO turnover. Both the likelihood of forced CEO turnover and its sensitivity to performance increase. These effects are stronger for firms exposed to greater predation risk and with products more simila...
Keywords: Product Market Competition, Forced CEO Turnover, Corporate governance
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Annual Conference

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Economic Transformation of Asia

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May 2016

Product Dynamics and Aggregate Shocks: Evidence from Japanese Product and Firm Level Data

Robert DEKLE, Atsushi KAWAKAMI, Nobuhiro KIYOTAKI, Tsutomu MIYAGAWA
We examine the effects of shocks to aggregate productivity, foreign output demand, government expenditures, and demand for foreign liquidity on dynamics of products and exports of heterogeneous firms. The framework is motivated by open economy general equilibrium models of Bilbie, Ghironi and Melitz...
Keywords: Product Adding, Product Dropping, Aggregate and Idiosyncratic Productivity Shocks, Foreign Demand Shocks, Exports, Real Exchange Rates
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Annual Conference

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Real Estate and Urban Economics, Senior Fellows/Fellows

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May 2019

Private Equity Incentive Contracting and Fund Leverage Choice When Investors Only Care About Meeting Return Targets

Yongheng DENG, Teng LI, Timothy RIDDIOUGH
We show how the standard PE compensation contract is used to create incentives for GPs to utilize leverage so that LP investors can meet their return targets. A theory of fund capital structure is developed in which investors trade off alpha with costs of financial distress. We then show how carried...
Keywords: private equity, Investment, pension fund, carried interest
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Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2019

Private Company Valuations by Mutual Funds

Si CHENG, Allaudeen HAMEED, Ayako YASUDA, Brad BARBER, Vikas AGARWAL
Mutual fund families set and report values of their private startup holdings, which affect the fund net asset value (NAV) at which investors buy/sell fund shares. We test three hypotheses related to the valuation practice: (i) information cost/access, (ii) litigation risk, and (iii) strategic NAV ma...
Keywords: Mutual Funds, Venture Capital, Private valuation, Stale prices, Financial fragility
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