DSpace Collection:
http://hdl.handle.net/10203/192578
2024-03-29T02:11:39ZIs the zero-leverage policy value-enhancing?
http://hdl.handle.net/10203/318008
Title: Is the zero-leverage policy value-enhancing?
Authors: Jiang, Wenwen; Kang, Jangkoo; Kim, Hwa-Sung
Abstract: Incompatible with standard capital structure theories, zero-leverage (ZL) firms are becoming increasingly common in recent decades. In this study, we examine whether shareholders consider a firm's ZL policy value -enhancing or value-reducing. Using Faulkender and Wang's (2006) methodology, we find that shareholders place a positive value on the event of a firm switching to zero debt. Furthermore, this valuation is not affected by whether the firm faces a managerial entrenchment problem, but is affected significantly by whether it is financially constrained before becoming debt-free. We find that shareholders place no value on a financially constrained firm following a ZL policy, but place a positive value on an unconstrained firm doing so, indicating that they only consider the latter as a value-enhancing policy. We also show that our finding still holds even when conducting an event study with short-term event windows. We infer that shareholders' positive valuation on financially unconstrained firms is related to the financial flexibility of ZL policies.2024-02-01T00:00:00ZThe Role of Advertising in High-Tech Medical Procedures: Evidence from Robotic Surgeries
http://hdl.handle.net/10203/315259
Title: The Role of Advertising in High-Tech Medical Procedures: Evidence from Robotic Surgeries
Authors: Yoon, Tae Jung; Kim, TI Tongil
Abstract: <jats:p> Hospital advertising has grown more than five-fold in the last two decades. However, hospital advertising has been understudied, unlike detailing and advertising for prescription drugs. This study introduces a customer-centric view to this market by investigating the role of advertising in patients’ choice of high-tech medical procedures, with a focus on robotic surgery. The authors analyze approximately 140,000 individual patient records and television advertising data from Florida during 2011-2015 to investigate how hospital advertising of robotic surgery affects patients’ choice of robotic surgery over more conventional laparoscopic and open surgeries. Using a variation of a Designated Market Area border identification strategy, the authors find that this advertising leads to more robotic surgery choices. The advertising effect is especially strong for Medicaid patients, whose socioeconomic status tends to be lower. While robotic surgery is associated with a shortterm health benefit (i.e., reduced length-of-stay), it does not affect long-term health benefits and comes at a higher cost than other forms of surgery. Thus, understanding the effect of advertising robotic surgery has significant health, cost, and marketing implications for different stakeholders in the healthcare industry, such as patients, healthcare providers, surgical robot manufacturers, insurance providers, and policymakers. </jats:p>2024-01-01T00:00:00ZTechnological diversification, technology portfolio properties, and R&D productivity
http://hdl.handle.net/10203/315087
Title: Technological diversification, technology portfolio properties, and R&D productivity
Authors: Yoo, Seh-Hyun; Lee, Chang-Yang
Abstract: This study aims to examine the differential effect of technological diversification on research and development (R&D) productivity based on the qualitative properties of technology portfolios (i.e., the direction of technological diversification). Using the U.S. patent database from 1980 to 2010, we divided overall technological diversification into related and unrelated technological diversification; furthermore, the two potential moderating factors of technology portfolio centrality and R&D consistency were tested across the different types of technological diversification. The notable findings are as follows: First, technology portfolio centrality has a positive moderating effect that is more pronounced as the degree of technological diversification increases. Second, R&D consistency has a positive and linear moderating effect. Third, the positive (negative) effect of technological diversification is more pronounced under related (unrelated) technological diversification. Consequently, firms can better utilize the R&D-productivity-enhancing effect of technological diversification by considering both the current degree of technological diversification and the properties of their technology portfolios.2023-12-01T00:00:00ZLiquidity risk, return performance, and tracking error: Synthetic vs. Physical ETFs
http://hdl.handle.net/10203/317165
Title: Liquidity risk, return performance, and tracking error: Synthetic vs. Physical ETFs
Authors: Kim, Jinhwan; Cho, Hoon; Seok, Sangik
Abstract: As the global ETF market continues to grow, the significance of understanding replication strategies has become increasingly apparent. This study examines the compensation of synthetic exchange-traded funds (ETFs) due to their greater risk exposure than physical ETFs, using ETFs listed on developed European markets from 2009 to 2020. This is the first study to investigate liquidity risk related to the replication strategy of ETFs. We investigate the difference in systematic liquidity risk between synthetic and physical ETFs using a liquidity-adjusted capital asset pricing model (LCAPM). Our findings suggest that synthetic ETFs have higher liquidity risks than physical ETFs and offer additional returns within the low-liquidity group. We also analyze the tracking performance of ETFs based on their type and find that the synthetic replication method reduces tracking errors within the high-liquidity group. Specifically, the enhanced tracking performance of synthetic ETFs becomes more prominent during periods of liquidity shocks than in regular periods. These findings shed light on key considerations for resolving puzzles in tracking errors.2023-12-01T00:00:00Z