Unemployment Concerns and Internal Capital Market Efficiency

• Main Authors: Ya-LingWang, 王雅玲
• Other Authors: Ting-Kai Chou
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/62254836180142314882

碩士 === 國立成功大學 === 財務金融研究所碩士在職專班 === 104 === This paper focuses on the relationship between unemployment concerns and internal capital allocation efficiency in conglomerate firms. We use a sample of U.S. conglomerate firms over the period 1977-2014 in this study, and the natural log of the maximum amount of unemployment benefits provides a proxy for unemployment concerns. We expect unemployment benefits to improve internal communications, and the quality of information flows, between divisions and headquarters, resulting in increased internal capital allocation efficiency. The empirical results show that internal capital allocation is less efficient for firms with more unemployment concerns.