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E&BSS: Corruption and management practices. Firm-level evidence - Daphne Athanasouli (UCL SSEES)

We argue that corruption can decrease aggregate productivity by deteriorating firm management practices.  More...

Starts: Mar 18, 2014 5:00:00 PM

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E&BSS: The urban-rural divide in educational outcome: Evidence from Russia - Chiara Amini (London Metropolitan University, UK)

This paper analyses the differences in educational achievement between urban and rural Russian secondary school students using data from the Program for International Student Assessment (PISA) surveys. More...

Starts: Feb 11, 2014 5:30:00 PM

E&BSS: ‘Black Spots’ in Capital Structure Studies: The Case of Non-Existing Debt - Eugene Nivorozhkin (UCL SSEES)

Publication date: Oct 24, 2013 2:01:16 PM

Start: Dec 3, 2013 5:00:00 PM

Location: Room 347, UCL SSEES Building, 16 Taviton Street, London, WC1H 0BW.

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This study focuses on what can be characterized as “black spots” in the existing studies - the selection issue, which is manifested in the fact that a nontrivial number of companies occasionally do not have any debt on their balance sheet. The problem of zero debt is akin to truncated and censored regression models, which are useful when the dependent variable is observed in some ranges but not in others. We find strong evidence that the results of the target adjustment studies of capital structure, which use fitted values of debt ratios, can be potentially biased due to failure to correct for censoring due to zero-leverage observations. The results also have tangible implications for corporate finance practitioners. Moreover, this paper also looks at the issue of dynamic properties of capital structure choice and the persistence in the capital structure choice and examines the effect of the 2008 global financial crisis on Russian firms’ capital structure choice.

Eugene Nivorozhkin is a Lecturer in the Economics of Central-Eastern Europe at UCL SSEES. His research interests include in particular corporate finance, banking regulation economics of education. His recent publications include papers in The European Journal of Finance, Eastern European Economics, Eastern European Economics and others.

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