International Journal of Banking, Accounting and Finance http://www.inderscience.com/browse/index.php?journalID=277&year=2011&vol=3&issue=4 Inderscience Publishers Ltd en-uk International Journal of Banking, Accounting and Finance 1755-3830 1755-3849 © 2011 Inderscience Publishers Ltd editor@inderscience.com https://www.inderscience.com/images/files/coverImgs/ijbaaf_scoverijbaaf.jpg http://www.inderscience.com/browse/index.php?journalID=277&year=2011&vol=3&issue=4 http://www.inderscience.com/link.php?id=43702 This paper investigates the relationship between pay disparity and innovation. In an empirical examination of S&P 4, 5, and 600 firms, it was found that difference in pay between CEO and the remaining top management is positively associated with higher research and development, patents and citations to patents. It was also found that the difference in pay between CEO and the chief technical officer (CTO) as well as CEO and the rest of the organisation also has a positive relationship with the measures of innovation. Positive relationship between pay inequality and innovation suggests that managers are rewarded for skill. Pay disparity and innovation: evidence from firm level data
Zenu Sharma
International Journal of Banking, Accounting and Finance, Vol. 3, No. 4 (2011) pp. 233 - 257
This paper investigates the relationship between pay disparity and innovation. In an empirical examination of S&P 4, 5, and 600 firms, it was found that difference in pay between CEO and the remaining top management is positively associated with higher research and development, patents and citations to patents. It was also found that the difference in pay between CEO and the chief technical officer (CTO) as well as CEO and the rest of the organisation also has a positive relationship with the measures of innovation. Positive relationship between pay inequality and innovation suggests that managers are rewarded for skill.

]]> 10.1504/IJBAAF.2011.043702 International Journal of Banking, Accounting and Finance, Vol. 3, No. 4 (2011) pp. 233 - 257 Zenu Sharma Long Island University, C.W. Post Campus, NY 11548, USA pay spread firm performance pay disparity innovation skills reward CEO top management research and development R&D patents patent citations CTO. 2011-11-16T23:20:50-05:00 3 4 233 257 2011-11-16T23:20:50-05:00 http://www.inderscience.com/link.php?id=43703 In this paper, we propose an integrated model of capital structure to study the partial adjustment process to the optimal long term debt ratio. In our analysis, we consider the characteristics of the institutional environment as a factor that influences such adjustment. We use a sample of quoted firms from Germany, Denmark, Spain, Italy, USA, Australia, Belgium, UK and France for the period 1996-2008. The key findings are that the firms follow optimal long-term debt ratios. Such optimal ratios are determined by firm characteristics identified in the trade-off, pecking order and market timing theories and by the country institutional environment. We observe that in those countries with lower cost of adjustment, essentially in those where banks are the main source of funds, firms can reach their target debt ratio in half the time needed by those countries with higher adjustment costs. An integrated model of capital structure to study the differences in the speed of adjustment to target corporate debt maturity among developed countries
Eleuterio Vallelado; Paolo Saona
International Journal of Banking, Accounting and Finance, Vol. 3, No. 4 (2011) pp. 258 - 293
In this paper, we propose an integrated model of capital structure to study the partial adjustment process to the optimal long term debt ratio. In our analysis, we consider the characteristics of the institutional environment as a factor that influences such adjustment. We use a sample of quoted firms from Germany, Denmark, Spain, Italy, USA, Australia, Belgium, UK and France for the period 1996-2008. The key findings are that the firms follow optimal long-term debt ratios. Such optimal ratios are determined by firm characteristics identified in the trade-off, pecking order and market timing theories and by the country institutional environment. We observe that in those countries with lower cost of adjustment, essentially in those where banks are the main source of funds, firms can reach their target debt ratio in half the time needed by those countries with higher adjustment costs.

]]> 10.1504/IJBAAF.2011.043703 International Journal of Banking, Accounting and Finance, Vol. 3, No. 4 (2011) pp. 258 - 293 Eleuterio Vallelado; Paolo Saona Research Group (GR144), University of Valladolid, 6 Valle de Esgueva Av., 47011, Valladolid, Spain. ' Business and Economics Department, Saint Louis University, Madrid Campus, 34 Del Valle Av., 28003, Madrid, Spain capital structure target debt maturity institutional environment panel data integrated modelling corporate debt maturity long term debt ratio optimal ratios trade-off pecking order market timing institutional environment adjustment costs. 2011-11-16T23:20:50-05:00 3 4 258 293 2011-11-16T23:20:50-05:00 http://www.inderscience.com/link.php?id=43704 It is widely acknowledged that firms performing R&D investments are very likely to undergo financial constraints due to their specific characteristics, which make external debt an imperfect substitute for internal finance, especially for small sized enterprises (Carpenter and Petersen, 2002; Hall, 2002). This situation calls into question the role that mutual guarantee consortia (MGC) might have in mitigating the effect of financial constraints on the innovative activities performed by small and medium enterprises (SMEs). In this paper, we explore how effectively this role is played by exploiting a large dataset of guarantee-backed loans provided by Eurofidi (an Italian mutual guarantee consortium), including both financial and non-financial information on applicant firms. We find that, when the destination of loans is considered, applications demanded to sustain R&D and innovation activities have a lower probability of being accepted, but they also have a lower probability of turning into bad loans (conditional on loan's acceptance), thus highlighting the potential absence of a minimising default risk behaviour by the granting institution (Boyes et al., 1989) with respect to the observed characteristics of the applicants. What role can mutual guarantee consortia play for financing innovation? A firm-level study for Italy
Elisa Ughetto; Andrea Vezzulli
International Journal of Banking, Accounting and Finance, Vol. 3, No. 4 (2011) pp. 294 - 319
It is widely acknowledged that firms performing R&D investments are very likely to undergo financial constraints due to their specific characteristics, which make external debt an imperfect substitute for internal finance, especially for small sized enterprises (Carpenter and Petersen, 2002; Hall, 2002). This situation calls into question the role that mutual guarantee consortia (MGC) might have in mitigating the effect of financial constraints on the innovative activities performed by small and medium enterprises (SMEs). In this paper, we explore how effectively this role is played by exploiting a large dataset of guarantee-backed loans provided by Eurofidi (an Italian mutual guarantee consortium), including both financial and non-financial information on applicant firms. We find that, when the destination of loans is considered, applications demanded to sustain R&D and innovation activities have a lower probability of being accepted, but they also have a lower probability of turning into bad loans (conditional on loan's acceptance), thus highlighting the potential absence of a minimising default risk behaviour by the granting institution (Boyes et al., 1989) with respect to the observed characteristics of the applicants.

]]> 10.1504/IJBAAF.2011.043704 International Journal of Banking, Accounting and Finance, Vol. 3, No. 4 (2011) pp. 294 - 319 Elisa Ughetto; Andrea Vezzulli DISPEA Politecnico di Torino, Corso Duca degli Abruzzi, 24 10129, Torino, Italy. ' UECE ISEG Technical University of Lisbon, Rua Miguel Lupi, 20, 1249-078, Lisboa, Portugal default prediction research and development R&D investments small and medium-sized enterprises SMEs mutual guarantee consortia MGC Italy innovation finance guarantee-backed loans default risk behaviour. 2011-11-16T23:20:50-05:00 3 4 294 319 2011-11-16T23:20:50-05:00 http://www.inderscience.com/link.php?id=43700 A difference-in-difference approach was used to investigate whether central bank independence (CBI) reforms matter for inflation, based on a novel dataset including the possible occurrence of such reforms in 132 countries during the period 1980 to 2005. CBI-reforms are found to have contributed to bringing down high inflation rates where those existed, but they seem unrelated to performance in low-inflation countries. Do central bank independence reforms matter for inflation performance?
Mats Landström
International Journal of Banking, Accounting and Finance, Vol. 3, No. 4 (2011) pp. 320 - 335
A difference-in-difference approach was used to investigate whether central bank independence (CBI) reforms matter for inflation, based on a novel dataset including the possible occurrence of such reforms in 132 countries during the period 1980 to 2005. CBI-reforms are found to have contributed to bringing down high inflation rates where those existed, but they seem unrelated to performance in low-inflation countries.

]]> 10.1504/IJBAAF.2011.043700 International Journal of Banking, Accounting and Finance, Vol. 3, No. 4 (2011) pp. 320 - 335 Mats Landström Department of Business and Economic Studies, University of Gävle, SE-80176 Gävle, Sweden monetary policy institutional reforms central banking price stability political economy delegation central bank independence banking reforms inflation performance. 2011-11-16T23:20:50-05:00 3 4 320 335 2011-11-16T23:20:50-05:00