Explore the vast range of titles available.

We develop a new and comprehensive database of firm-level contributions to U.S. political campaigns from 1979 to 2004. We construct variables that measure the extent of firm support for candidates. We find that these measures are positively and significantly correlated with the cross-section of future returns. The effect is strongest for firms that support a greater number of candidates that hold office in the same state that the firm is based. In addition, there are stronger effects for firms whose contributions are slanted toward House candidates and Democrats.

The probability of extreme default losses on portfolios of U.S. corporate debt is much greater than would be estimated under the standard assumption that default correlation arises only from exposure to observable risk factors. At the high confidence levels at which bank loan portfolio and collateralized debt obligation (CDO) default losses are typically measured for economic capital and rating purposes, conventionally based loss estimates are downward biased by a full order of magnitude on test portfolios. Our estimates are based on U.S. public nonfinancial firms between 1979 and 2004. We find strong evidence for the presence of common latent factors, even when controlling for observable factors that provide the most accurate available model of firm-by-firm default probabilities.

Using novel data on European firms, this paper investigates the relationship between business groups and innovation. Controlling for various firm characteristics, we find that group affiliates are more innovative than standalones. We examine several hypotheses to explain this finding, focusing on group internal capital markets and knowledge spillovers. We find that group affiliation is particularly important for innovation in industries that rely more on external funding and in groups with more diversified capital sources, consistent with the internal capital markets hypothesis. Our results suggest that knowledge spillovers are not the main driver of innovation in business groups because firms affiliated with the same group do not have a common research focus and are unlikely to cite each other's patents.

We test the doubly stochastic assumption under which firms' default times are correlated only as implied by the correlation of factors determining their default intensities. Using data on U.S. corporations from 1979 to 2004, this assumption is violated in the presence of contagion or \"frailty\" (unobservable explanatory variables that are correlated across firms). Our tests do not depend on the time-series properties of default intensities. The data do not support the joint hypothesis of well-specified default intensities and the doubly stochastic assumption. We find some evidence of default clustering exceeding that implied by the doubly stochastic model with the given intensities.

We provide evidence that college graduation plays a direct role in revealing ability to the labor market. Using the NLSY79, our results suggest that ability is observed nearly perfectly for college graduates, but is revealed to the labor market more gradually for high school graduates. Consequently, from the beginning of their careers, college graduates are paid in accordance with their own ability, while the wages of high school graduates are initially unrelated to their own ability. This view of ability revelation in the labor market has considerable power in explaining racial differences in wages, education, and returns to ability.

Over three-quarters of US taxpayers receive income tax refunds, which are effectively zero-interest loans to the government. Previous explanations include precautionary and'forforced savings motives. I present evidence on a third explanation: inertia. I find that following a change in tax liability, prepayments are only adjusted by 29 percent of the tax change after one year and 61 percent after three years. Adjustment increases with income and experience, and for EITC recipients, I rule out adjustment greater than 2 percent. Thus, policies affecting default-withholding rules are no longer neutral decisions, but rather, may affect consumption smoothing, particularly for low-income taxpayers.

Given that divorce often represents a high-stakes income gamble, we ask how individual levels of risk tolerance affect the decision to divorce. We extend the orthodox divorce model by assuming that individuals are risk averse, that marriage is risky, and that divorce is even riskier. The model predicts that conditional on the expected gains to marriage and divorce, the probability of divorce increases with relative risk tolerance because risk averse individuals require compensation for the additional risk that is inherent in divorce. To implement the model empirically, we use data for first-married women and men from the 1979 National Longitudinal Survey of Youth to estimate a probit model of divorce in which a measure of risk tolerance is among the covariates. The estimates reveal that a 1-point increase in risk tolerance raises the predicted probability of divorce by 4.3% for a representative man and by 11.4% for a representative woman. These findings are consistent with the notion that divorce entails a greater income gamble for women than for men.

We examine whether adult education delays retirement to potentially increase labour force participation among the elderly, a mechanism suggested in the OECD strategy for \"active ageing\" and the \"Lisbon strategy\" of the EU. Using register data from Sweden, we analyse transcripts from adult education for the period 1979-2004 and annual earnings 1982-2004. We match samples dï treated individuals, in adult education 1986-1989, and untreated on the propensity score. The timing of exit from the workforce is assessed by nonparametric estimation of survival rates in the labour force. The results indicate no effects of adult education on the timing of retirement.

The author investigates gender differences in the impact of accumulated union experience on job satisfaction. Because there are fewer women than men in both public and private sector unions, and women are disproportionately underrepresented in union leadership, their collective bargaining power is not equivalent to that of men. As a result, women's preferences for job characteristics and benefits may be overlooked, contributing to reduced job satisfaction as their tenure in the union increases. Using the National Longitudinal Survey of Youth (NLSY) panel data from 1979-2004, the author demonstrates that the accumulation of union experience negatively affects women's job satisfaction more severely than it does men's. This is particularly the case in private sector unions, in which women are more likely to be under-represented in both union membership and leadership positions.

Purpose - This paper seeks to examine why and how M&A activity has been used by UK hotel companies over a 26-year period and aims to provide a preliminary exploration of its relative success, given that the M&A literature suggests high failure rates or M&A transactions which do not achieve their objectives.Design methodology approach - This research is based on a combination of a multiple-case study and comparative historical analysis to bring out the different levels of analysis embedded in past M&A literature and to identify changes of motives for undertaking M&A activities based on companies and their external environment.Findings - The paper finds that value maximizing motives are prevalent whilst non-value maximizing motives are not supported. The acquisition of brand names and rights is a major motive for the UK hotel industry, particularly in the light of global competition and the brand power that enables companies to expedite growth while at the same time reducing financial risks.Practical implications - This longitudinal study serves to reinforce the type of target companies, particularly those that share similar resources or end products, for acquiring companies to select from in order to expect a higher M&A success rate.Originality value - This paper provides the first empirical study to integrate the comparative historical analysis approach with strategic management M&A theory to trace and understand how and why UK hotel companies became leading international companies. Through this interdisciplinary approach, the importance of acquiring a brand name is illustrated and identified as an essential motive, specific to the hotel industry.