2024 Peer firm effects

Peer firm effects

Author: bpli

August undefined, 2024

WebMay 22, 2014 · In Eq. 1, PeerChoice ijk is an indicator variable that equals one if analyst k’s report on firm i contains peer j in determining valuation and zero otherwise. The treatment sample (i.e., PeerChoice = 1) for this test includes peers chosen by analysts in their reports.To estimate the model, we require a sample of peers not chosen by analysts. To … WebAug 22, 2013 · These peer effects are more important for capital structure determination than most previously identified determinants. Furthermore, smaller, less successful firms are highly sensitive to their larger, more successful peers, but not vice versa.

Peer Pressure in Corporate Earnings Management

WebDownloadable! We examine how a firms' investment behavior affects the investment of a neighboring firm. Economic theory yields ambiguous predictions regarding the direction of firm peer effects and consistent with earlier work, we find that firms display similar investment behavior within an area using OLS analysis. Exploiting time-variation in the rise … WebMore financially constrained firms show greater dependency on peers’ investment decisions. Tests of peer sensitivity to the increase in industrial competition, however, displayed a U … earth\u0027s revolution time

Evidence on Contagion in Earnings Management - JSTOR

WebWhat is Peer Effects. 1. The influence created by other people. Learn more in: Popular Culture and Peer Effects in Consumption: Survey of Economic Consequences. Find more … Webpeer effects. We also show that the spillover effects from changing peer charac-teristics can either offset or further amplify the effect of changes in exogenous characteristics. … WebOct 29, 2024 · Therefore, firms are more affected by peers belonging to the same industry. CSR is viewed as a signal of firms’ quality by shareholders, creditors and credit agencies. CSR can mitigate the information asymmetry between firms and stakeholders. earth\\u0027s rheological layers

Does peer influence improve firms’ innovative ... - ScienceDirect

WebPasini (2014)). With increasing intra- and inter-industry firm interactions, peer effects have been found to be one of the most import determinants of corporate behavior. For example, according to Leary and Roberts (2014), peer effects are more important for capital structure decision than most previously identified determinants. WebAug 22, 2013 · These peer effects are more important for capital structure determination than most previously identified determinants. Furthermore, smaller, less successful firms … ctrl shift r javascriptWebJul 17, 2024 · This paper investigates if and how a peer’s bankruptcy affects financial reporting by other firms within the industry. Prior research documents that the bankruptcy … ctrl shift r in eclipse

"WebOct 29, 2024 · Therefore, firms are more affected by peers belonging to the same industry. CSR is viewed as a signal of firms’ quality by shareholders, creditors and credit agencies. … " - Peer firm effects

Peer firm effects

(PDF) Peer Effects, Financial Decisions, and Industry Concentration: A …

WebDec 11, 2024 · One concern in understanding capital markets is discerning how news released by one firm impacts the security prices of other firms. Early research on information transfer documents that firms’ earnings announcements and earnings forecasts often result in price effects for industry peers (Foster 1981; Pownall and Waymire 1989; … WebPeerform is a peer-to-peer lending company based in New York City, which matches prime and near-prime qualified borrowers in the United States to accredited high net worth and …

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WebPeer firms have a significant impact on capital structure decisions. Smaller firms will mimic larger and more successful firms’ financing actions, which supports the theories of … WebThe peer effect cascades through the firm network as the first peer interacts with a second peer, the second peer interacts with a third, and so on. The total peer effect can be decomposed into the direct influence of the peer father and the indi- rect snowball effect operating through the increase in take-up of other coworkers.

Webby peer effects since a shock to one ﬁrm affects all of the other ﬁrms in the peer group. To illustrate, consider a shock to ﬁrm A’s proﬁtability. This shock affects not only ﬁrm A’s ﬁnancing choice, but also that of every other member of ﬁrm A’s peer group. This impact on peer ﬁrms’ ﬁnancial policies feeds back WebMar 18, 2024 · It also investigates the heterogeneity in peer effects by taking into account a firm’s age and its leadership role in the industry. The system-GMM estimation results suggest that peer firms significantly influence a firm’s investments on both tangible and intangible assets. Yet, peer effects are more pronounced for tangible investment.

WebApr 3, 2024 · With the recent increases in market competition, the effects of peer firms have spread over individual firms’ operating, investing, and financing activities, which has prompted researchers to investigate the effects of industry peers on individual firms’ voluntary disclosure activities (Seo 2024; Lin et al. 2024 ). WebMar 18, 2024 · This content analysis of scantily available peer effect literature has been performed to highlight the significance of peer effects in financial decision making like investment, cash...

WebOct 9, 2024 · Peer effects are stronger in concentrated markets, featuring more heterogeneous firms, and for smaller firms with less precise information. Our findings are …

ctrl shift right arrowWebUsing a network approach that circumvents well-known challenges in estimating peer effects, we show that interactions with a firm’s geographic neighbors play a significant causal role in corporate investment behavior and a modest role in financial ... earth\u0027s rheological layersWebJun 26, 2024 · Peer Perform: An investment rating used by analysts when given security is expected to provide returns that are consistent with those of other companies within its … ctrl shift right downWebJul 25, 2024 · Using employee works for superior peer firm as a mediator reduces the mediation effect. While the variable mediates roughly 23% (0.024/0.108) of the effect of number of peers on an employee's personal success, it mediates 58% (1.074/1.861) of the effect of superiority of peers on an employee's personal success. ctrl + shift + right clickWebWe study the bond price reaction of a merged firms peers, in order to better understand how the market responds to a restructuring. We argue that a merger announcement may signal the possibility of a merger wave to the industry, and in doing so, increase the conditional probability that peer firms might themselves be acquired in the future. However, while … earth\u0027s rotationWebAug 22, 2013 · These peer effects are more important for capital structure determination than most previously identified determinants. Furthermore, smaller, less successful firms are highly sensitive to their larger, more successful peers, but not vice versa. ctrl shift right clickWebinsignificant peer effects. Thus, peer firms matter for financial policy. To address the second identification challenge (i.e., the channel through which peer effects operate), we show that, conditional on peer firm financial policy, capital structure is largely insensitive to peer firms' idiosyncratic stock returns. earth\\u0027s rotation