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ESSAYS ON GOVERNMENT CONTRACTING AND PRIVATE INVESTMENT FIRMS: IMPLICATIONS FOR CORPORATE FINANCE
Title
ESSAYS ON GOVERNMENT CONTRACTING AND PRIVATE INVESTMENT FIRMS: IMPLICATIONS FOR CORPORATE FINANCE.
Creator
Suleymanov, Masim, Cumming, Douglas, Javakhadze, David, Florida Atlantic University, Department of Finance, College of Business
Abstract/Description
The modern organization is “a nexus of contracts” among various stakeholders. In this two-essay study, I examine how contracts surrounding entrepreneurial firms, namely contracts with the U.S. government agencies as customers and contracts with venture capital (VC) firms as investors, interact. In the first essay, I examine whether and how the ex-post government contracting activity of portfolio companies affects the performance of VC investments. Prior research establishes the impact of...
Show moreThe modern organization is “a nexus of contracts” among various stakeholders. In this two-essay study, I examine how contracts surrounding entrepreneurial firms, namely contracts with the U.S. government agencies as customers and contracts with venture capital (VC) firms as investors, interact. In the first essay, I examine whether and how the ex-post government contracting activity of portfolio companies affects the performance of VC investments. Prior research establishes the impact of government customers on the contractor's operating performance and information quality. I find that government contracting improves the likelihood of successful exits via initial public offering (IPO) or acquisition and reduces the likelihood of a liquidation. I also find that the suppliers’ bargaining power relative to the government moderates the relationship between government contracting and VC investment exits. The increased suppliers’ bargaining power mitigates the positive relationship between government contracting and the likelihood of IPOs. The impact of government contracting on the likelihood of acquisitions and liquidations is more substantial for suppliers with greater bargaining power. The results are robust for reputable and non-reputable VC firms, alternative model specifications, and adjustments for potential endogeneity.
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Date Issued
2022
PURL
http://purl.flvc.org/fau/fd/FA00013917
Subject Headings
Public contracts, Venture capital, Corporations—Finance
Format
Document (PDF)
REGIONAL SOCIAL CAPITAL AND BACKER SENTIMENT FOR SUCCESSFUL CROWDFUNDING CAMPAIGNS
Title
REGIONAL SOCIAL CAPITAL AND BACKER SENTIMENT FOR SUCCESSFUL CROWDFUNDING CAMPAIGNS.
Creator
Grimes, Joseph, Pennathur, Anita, Florida Atlantic University, Department of Finance, College of Business
Abstract/Description
Local social capital, defined as the level of community interaction and social participation of a region, has been theorized to positively affect economic outcomes and discourage opportunistic behaviors in various settings. I examine whether local social capital is related to positive outcomes for entrepreneurs and their financial backers in the settings of reward crowdfunding and small business lending. In my first study, I look at how local social capital influences the creators of...
Show moreLocal social capital, defined as the level of community interaction and social participation of a region, has been theorized to positively affect economic outcomes and discourage opportunistic behaviors in various settings. I examine whether local social capital is related to positive outcomes for entrepreneurs and their financial backers in the settings of reward crowdfunding and small business lending. In my first study, I look at how local social capital influences the creators of successful reward crowdfunding campaigns. These creators, in turn, may influence the sentiment of their investors, or backers, towards their projects through missed delivery deadlines and poor communication. With comments collected from successful Kickstarter crowdfunding pages, I use textual analysis to construct a measure of the sentiment of project backers following the fundraising deadline.
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Date Issued
2024
PURL
http://purl.flvc.org/fau/fd/FA00014385
Subject Headings
Crowd funding, Social capital (Sociology), Entrepreneurship
Format
Document (PDF)
INDUSTRY CONCENTRATION AND URBAN GROWTH: AN ANALYSIS OF THE IMPACT OF INDUSTRY DIVERSITY ON METROPOLITAN AREA EMPLOYMENT IN THE UNITED STATES
Title
INDUSTRY CONCENTRATION AND URBAN GROWTH: AN ANALYSIS OF THE IMPACT OF INDUSTRY DIVERSITY ON METROPOLITAN AREA EMPLOYMENT IN THE UNITED STATES.
Creator
Potts, Sheila, Pennathur, Anita, Florida Atlantic University, Department of Finance, College of Business
Abstract/Description
The purpose of this study is to look at the effects that industry concentration has on the growth of local areas. People will go where the jobs are so by evaluating employment data one can also evaluate the growth of an area. Common economic basis calculations and indices were used to provide useful information about characteristics of growth, competitiveness, and concentrations of local industries compared to the national level. The key results show the complex nature of urban and regional...
Show moreThe purpose of this study is to look at the effects that industry concentration has on the growth of local areas. People will go where the jobs are so by evaluating employment data one can also evaluate the growth of an area. Common economic basis calculations and indices were used to provide useful information about characteristics of growth, competitiveness, and concentrations of local industries compared to the national level. The key results show the complex nature of urban and regional development exemplified by changes in employment and that access to more and complex data will be necessary to gain a greater understanding of urban growth.
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Date Issued
2024
PURL
http://purl.flvc.org/fau/fd/FA00014373
Subject Headings
Cities and towns--Growth, Cities and towns--Growth--Economic aspects, Cities and towns--United States
Format
Document (PDF)
THE EFFECT OF STOCK MANIPULATION AND INSTITUTIONAL OWNERSHIP ON CORPORATE VENTURE CAPITAL INVESTMENTS
Title
THE EFFECT OF STOCK MANIPULATION AND INSTITUTIONAL OWNERSHIP ON CORPORATE VENTURE CAPITAL INVESTMENTS.
Creator
Li, Yuan, Cumming, Douglas, Florida Atlantic University, Department of Finance, College of Business
Abstract/Description
My first study proposes that stock price manipulation erodes trust, damages corporate reputation, reorients management towards short-termism, harms entrepreneurial innovation culture, and increases the cost of capital. I tested these ideas by linking stock manipulation data to corporate venture capital data for firms listed on NASDAQ and NYSE. The data indicate CVC investments in entrepreneurial firms are followed by a rise in market manipulation in the short run [-3 months, +3 months], but a...
Show moreMy first study proposes that stock price manipulation erodes trust, damages corporate reputation, reorients management towards short-termism, harms entrepreneurial innovation culture, and increases the cost of capital. I tested these ideas by linking stock manipulation data to corporate venture capital data for firms listed on NASDAQ and NYSE. The data indicate CVC investments in entrepreneurial firms are followed by a rise in market manipulation in the short run [-3 months, +3 months], but a decline thereafter. The data further indicates that stock manipulation harms the ability of CVCs to form investment syndicates and reduces the likelihood of successful IPO and acquisition exits. The hazard rate to IPO is 0.54 for CVC-backed firms that face market manipulation. Overall, the theory and evidence provide insights into how firm's manipulation can damage the effectiveness of their venture capital endeavors, ultimately contributing to sustainable growth and innovation.
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Date Issued
2024
PURL
http://purl.flvc.org/fau/fd/FA00014451
Subject Headings
Venture capital, Investments, Stocks, Finance, Economics
Format
Document (PDF)
Two Essays on An Examination of Life Cycle Effects and Firm Policies
Title
Two Essays on An Examination of Life Cycle Effects and Firm Policies.
Creator
Danso, Charles K. A., Garcia-Feijoo, Luis, Pennathur, Anita K., Florida Atlantic University, College of Business, Department of Finance
Abstract/Description
In Essay 1, I investigate the impact of corporate life cycle dynamics on the observed negative association between asset growth and stock returns in the crosssection. I find that the asset growth effect on average exists across some life cycle stages measured using cohorts. However, controlling for certain variables associated with the theoretical explanations, I find there is no relation between asset growth and returns. I argue this evidence is consistent with an agency-based explanation of...
Show moreIn Essay 1, I investigate the impact of corporate life cycle dynamics on the observed negative association between asset growth and stock returns in the crosssection. I find that the asset growth effect on average exists across some life cycle stages measured using cohorts. However, controlling for certain variables associated with the theoretical explanations, I find there is no relation between asset growth and returns. I argue this evidence is consistent with an agency-based explanation of the asset growth effect. Furthermore, a decomposition of the drivers of the effect shows that different components of assets (i.e. working capital and financing) drive asset growth effect at different life cycle stages. From a decomposition analyses, results show that in the youngest firms (cohort 1), asset growth effect is mostly driven by both operating liability and stock financing on one side (financing) and noncash current assets, PPE, and growth in other assets (for working capital) while cohort 3’s drivers appear to be stock issuances, together with noncash current assets, which I conclude offer further support for agency issues. In Essay 2, I examine how firms’ life cycle affect insider trading behavior, profits surrounding trades, price informativeness, and financing constraints. I argue that if firms’ policies and characteristics change over time as shown in lifecycle literature, then from firm characteristics that motivate insider-trading behavior, one should observe some differences across varying life cycle stages measured using age cohorts. I find that insiders are net sellers at all life cycle stages of a firm. Furthermore, insiders tend to trade more in younger firms than in older firms even though they have fewer numbers of insiders trading. Trading characteristics are generally statistically significant across cohorts. Overall, insiders appear to predict the correct direction for positive wealth generation when trading. Specifically, at all lifecycle stages, they appear to sell before negative CARs, and buy during periods associated with negative CARs that lead to positive CARs days after insider transactions. The findings on price informativeness suggest that in general insider purchases enhance price informativeness for firms at different lifecycle stages, however, this finding holds only for cohort 4 (oldest firms) in the case of insider sales. The implication of this finding is that regulation should be more lax towards purchases as compared to sales for firms, except for sales in firms that are older. Lastly, insider trades are linked with positive investment-cash flow sensitivities for both insider purchases and insider sales, which generally increase monotonically across cohorts. This finding is robust to using GMM approach.
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Date Issued
2018
PURL
http://purl.flvc.org/fau/fd/FA00013057
Subject Headings
Corporations--Growth., Stocks--Rate of return., Insider trading in securities.
Format
Document (PDF)

Pages