Social and Behavioral Sciences Commons^™

Default Risk, Zeynep Topaloglu

Dissertations, Theses, and Capstone Projects

The hazard rate models used in recent bankruptcy literature assume censoring and default are two independent events, which means the censored company will eventually default. However we believe there will be a portion in the censored group that will be long-term survivors and we propose a mixture model of survivors and risky companies. Moreover this dissertation models the event and the timing of default incident at the same time. For the event of default and the timing of default we utilize a logistic regression. The results have justified the advantage of our model over the standard hazard rate models and …

Essays In Corporate Finance, Milos Vulanovic

Dissertations, Theses, and Capstone Projects

This dissertation consists of two essays on corporate finance. In the first essay we test the pecking order theory by examining how firms finance maturing long-term debt. This allows us to accomplish three goals: resolve the issues of debt capacity and the endogeneity of financing deficit; examine the role of internal financing; and generate evidence regarding the order in which different sources of financing are used. We determine that firms use internal funds before they issue new debt to refinance maturing long-term debt. Firms with more cash on hand are less likely to issue new debt to refinance. On average, …

Railroads And Economies Of Scale And Scope In U.S. Manufacturing Industries: 1850-1880. Chandler Revisited, Michael Kalson

Dissertations, Theses, and Capstone Projects

This study concerns the measurement and quantification of the relationship between railroadization in the United States in the mid-19^th century and the subsequent evolution of the modern, large-scale, corporate form of industrial business organization marked by significant economies of scale and scope, as described in various writings by Alfred Chandler. Focusing on American industry as it developed from 1850-1880 using data uniquely suited to empirical analysis of economies of scale and scope, its aim is to determine whether the growth of the American railroad network, as Chandler contended, expanded markets and augmented the American financial sector such that the …

Essays On Economic Policy: Income Inequality And Health Insurance, Eric Doviak

Dissertations, Theses, and Capstone Projects

This dissertation contains economic analyses of two critical social issues facing the United States at the dawn of the 21st century: income inequality and the affordability of health insurance.

The chapter on income inequality uses the Solow Model of economic growth to model the evolution of inequality over time. In steady state, differences in household saving rates generate differences in household capital income. Households that save more accumulate more capital and have higher steady-state income. Tax policy affects the distribution of income through its influence on household saving rates. Increasing the tax rate on labor income causes a greater percentage …

Three Essays On The Determinants Of Foreign Direct Investment (Fdi), Haitao Liang

Dissertations, Theses, and Capstone Projects

At first, a literature review of over 150 articles on the determination of Foreign Direct Investment (FDI) proposes the main determinants of FDI. A meta-analysis tests the reliability of the previous studies on FDI.

Then, a cluster analysis on FDI data reveals the necessary to segment economies, especially by income level, in FDI analysis.

A large number of studies emphasize FDI determinants but ignore the income distribution on the results, which biases the estimates. In Chapter 3, I correct for heterogeneity due to income distribution by using the Blundell-Bond System GMM (Generalized Method of Moments), which controls for endogeneity problem …