Connections and Information Acquisition in Capital Allocation Mariassunta Giannetti Xiaoyun Yu Stockholm School of Economics‚ Kelley School of Business CEPR and ECGI Indiana University mariassunta.giannetti@hhs.se xiyu@indiana.edu August 2010 This paper was previously circulated under the title “Favoritism or Markets in Capital Allocation?” We thank Franklin Allen‚ Utpal Bhattacharya‚ Philip Bond‚ Brian Bucks‚ Chun Chang‚ Todd Gormley‚ Denis Gromb‚ Dalida Kadyrzhanova
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It’s important to note that this “Dream” is most closely associated with financial independence and opportunity in modern times- a result of the nation’s capitalist economic system‚ and the effects of the media on public opinion. “The American Dream is an implicit contract that says if you play by the rules‚ you’ll move ahead. It’s a faith that is almost unique to this country‚” remarks Michael Dimock of the Pew Research Center. However‚ despite positive images of American society‚ the “modern
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NO. 4 • AUGUST 2002 A Review of IPO Activity‚ Pricing‚ and Allocations JAY R. RITTER and IVO WELCH* ABSTRACT We review the theory and evidence on IPO activity: why firms go public‚ why they reward first-day investors with considerable underpricing‚ and how IPOs perform in the long run. Our perspective is threefold: First‚ we believe that many IPO phenomena are not stationary. Second‚ we believe research into share allocation issues is the most promising area of research in IPOs at the moment
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Is Monopoly necessarily less efficient than Perfect Competition According to SJ Grant’s Introductory Economics‚ Monopoly is the only sole supplier of the industry. They would not inherit any competitions as well as having no close substitutes. There are many reasons that cause the formation of Monopolists. Barriers to enter or exit discourages new firms to enter the market (patent rights creates a right to sell that product‚ abnormal profit‚ predatory pricing‚ raw material ownership‚ high fixed
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resource An economic or productive factor required to accomplish an activity‚ or as means to undertake an enterprise and achieve desired outcome. Three most basic resources are land‚ labor‚ and capital; other resources include energy‚ entrepreneurship‚ information‚ expertise‚ management‚ and time. Natural resources are derived from the environment. Many natural resources are essential for human survival‚ while others are used for satisfying human desire. Conservation is the management of natural
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big parking lot can be very challenging and effortful. Even when an indication is provided that a small percentage of slots is still available in the enormous car parks‚ most drivers do not seem to be able to locate those slots. Car Parking Slot Allocation System is a system that automates the searching and guides drivers on which location is their chosen slot located in the parking area. The system is designed to prevent problems usually associated with parking cars in a certain parking lot. How
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ST. MARY’S COLLEGE OF TAGUM INC. National Highway‚ Tagum City CAR PARKING SLOT ALLOCATION SYSTEM A Thesis Project Submitted to the Faculty of Bachelor of Science in Computer Science In Partial Fulfillment of the Academic Requirements for the Degree of Bachelor of Science in Computer Science (BSCS) Submitted by: Agnes‚ Cesar Ian D. Alivio‚ Cathrine Y. Custodio‚ Jinky Joyce O. Daganio‚ Jecel G. Osic‚ Ralph Raoul C. Submitted to: Mr. Archie C. Ceñas‚ MIM March
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Microsoft’s journey towards Monopoly Summary The case evolves around the unethical monopolistic actions taken by Microsoft to achieve monopoly. Some major facts in the case are given below – • In 1980 IBM representative met bill gates for Operating System • Bill Gates bought Operating System from a friend in $60‚000 Microsoft licensed MS-DOS to IBM with condition that it could license it to others too •1981 IBM started mass production of and MS-DOS became standard Operating System for Personal
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Case study De Beers: A Monopoly is not forever Case Study Overview Case discussion questions 1. How did De Beers become a monopoly and how did it maintain its monopoly? ……………………………………………………………………………………………………………………………………………..………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………………………………………..………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………………………………………..………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………………………………………
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1. What is the competitive environment facing EDC? In terms of the competitive environment facing EDC‚ Ann realizes that not only is the number of competitors increasing‚ but the nature of the demand for bicycles is changing as well. The U.S. mass market bicycle sales is expected to grow by only 2% a year‚ while the Asian market for those same bikes is nearly doubling on a yearly basis. This growth scenario is likely to lead to thinner margins and a lower ROI in the
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