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Badertscher Paper on Private Ownership and Public Debt Published

Author: Lorie Marsh

Brad Badertscher's paper (co-authored with Sharon Katz, Dan Givloy, and Hanna Lee) "Private Ownership and the Cost of Public Debt: Evidence from the Bond Market" has been accepted for publication in Management Science.

A number of studies have examined the effect of public and private ownership on the cost of debt and conclude that the cost of debt of privately owned firms is higher, driven mainly by the poorer information environment in which these firms operate. We extend this strand of research in two ways. First, we identify and empirically establish the mechanisms that bring about a higher cost of debt to privately-owned firms, namely the limited access that these firms have to the equity capital market, their high rate of management and private-equity ownership, and their less conservative reporting. Second, we improve the reliability of the estimates of the effect of ownership type on the cost of debt by controlling for the different information environments in which privately- and publicly-owned firms operate. This is accomplished through the use of a sample consisting of publicly-owned and privately-owned firms that have public debt and are therefore subject to identical reporting and disclosure requirements. Certain data and design features allow us to better control for other factors that might lead to the observed difference in the cost-of-debt between the two groups of firms. The results contribute to our understanding of the role of ownership type on the cost of capital.…

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Ramanan Publishes Paper In Oil, Gas & Energy Quarterly

Author: Lorie Marsh

Ram Ramanan's paper with Kirk Phillipich and Bruce Bublitz, "One Conspirator or Two in the Death of the Coal-Miner's Daughter", has been accepted for publication by Oil, Gas, & Energy Quarterly.

This research attempts to address the question of who was culpable in the market decline experienced by coal companies during the 2014 through early 2016 time period.  Was the coal industry being creatively destroyed as more climate-friendly substitutes (e.g. natural gas) became more viable and less expensive?  Alternatively, did the role played by the regulatory process, at a minimum, contribute to the coal industry’s demise?…

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