Interet de recherche

Themes

Corporate Finance
Corporate Governance
Emerging Markets Finance
Family Firms
Finance
International Finance

Industries

Emerging countries

Recherche actuelle

Why Do Shareholders Value Marriage? (with Joseph P.H. Fan and Yupana Wiwattanakantang)

Abstract:
This paper studies marriages of top 150 business owners and their family members in Thailand during 1991-2006. Out of 200 marriages, more than two-thirds chose the partner from the business or political circle. In effect, via marriage, the controlling family can be closely connected to other influential families including business leaders and politicians. Indeed, investors recognize the value of the "network marriages." Stock prices of the family firms react strongly positively to the wedding news. Abnormal returns are in particular higher for the firms whose operation depends on having extensive networks for reliable information, lucrative contracts, and resource sharing. These firms are in the property and construction industries, based on state concessions, or in diversified business groups.

Big Business Owners and Politics (with Yupana Wiwattanakantang)
Published in Review of Financial Studies, 2009, Vol. 22 Number 6, pp. 2133-2168”

Abstract:
This paper investigates a little studied but common mechanism that firms use to obtain state favors: business owners themselves seeking election to top office. Using Thailand as a research setting, we find that the more business owners rely on government concessions or the wealthier they are, the more likely they are to run for top office. Once in power, the market valuation of their firms increases dramatically. Surprisingly, the political power does not influence the financing strategies of their firms. Instead, business owners in top offices use their policy-decision powers to implement regulations and public policies favorable to their firms. Such policies hinder not only domestic competitors but also foreign investors. As a result, these politically connected firms are able to capture more market share.

Debt and Entrenchment: Evidence from Thailand and Indonesia (with Jyoti Gupta and Rofikoh Rokhim)
Published in European Journal of Operational Research, 2008, Vol. 185, Issue 3, pp.1578-1595”

Abstract:
This paper examines the relation between debt and corporate governance in emerging market economies. We use firm-level panel data of listed companies from Thailand and Indonesia to analyze the firm's corporate financing behaviors in connection with its corporate governance arrangements. Our results show that the debt structure is linked to the corporate governance. We find that weaker corporate governance firms, in particular measured by the entrenchment effects, tend to have a higher debt level. The evidence is relatively stronger during the crisis period. Our results also shed lights on the importance of the country-specific institutional settings that would affect the empirical results.

Publications

Published articles

BUNKANWANICHA P., WIWATTANAKANTANG Y., (2009), "Big Business Owners in Politics", REVIEW OF FINANCIAL STUDIES, June, Vol. 22, Issue 6, pp 2133-2168, 36 p.

BUNKANWANICHA P., GUPTA J., ROKHIM R., (2008), "Debt and Entrenchement: Evidence from Thailand and Indonesia", EUROPEAN JOURNAL OF OPERATIONAL RESEARCH, March, vol. 185, issue 3, pp 1578-1595, 18 p.

BUNKANWANICHA P., WIWATTANAKANTANG Y., (2006), "Market Valuation of Political Power: Evidence from Politically Connected Firms in Thailand", THE ECONOMIC REVIEW, October, pp 289-302, 14 p.

Conference proceedings

BUNKANWANICHA P., FAN J. P. H., WIWATTANAKANTANG Y., (2009), "Why Do Shareholders Value Marriage?", Proceedings of 44th Annual Conference of the Western Finance Association (WFA), San Diego, 2009, June 17-20, San Diego, USA.

BUNKANWANICHA P., FAN J. P. H., WIWATTANAKANTANG Y., (2008), "The Value of Family Networks: Marriage and Network Formation in Family Business Groups", Proceedings of the European Finance Association (EFA), Meeting, Athens, 2008, August 28-30, Athens, Greece.

BUNKANWANICHA P., WIWATTANAKANTANG Y., (2007), "Big Business Owners and Politics: Investigating the Economic Incentives of Holding Top Office", Proceedings of the American Finance Association, 2007, January, Chicago, Web Link.

BUNKANWANICHA P., WIWATTANAKANTANG Y., (2006), "Big Business Owners and Politics: Investigating the Economic Incentives of Holding Top Office", Proceedings of the European Finance Association Annual Meeting, 2006, August, Zurich, Web Link.

BUNKANWANICHA P., GUPTA J., WIWATTANAKANTANG Y., (2005), "Pyramiding of Family-owned Banks in Emerging Markets", Proceedings of the FMA European Meeting, 2005, June, Siena.

BUNKANWANICHA P., GUPTA J., ROKHIM R., (2004), "Debt and Entrenchment: Evidence from Thailand and Indonesia", Proceedings of the FMA Annual Meeting, 2004, October, News Orleans, Web Link.

Case studies & Pedagogical tools

BUNKANWANICHA P., GUPTA J., (2003), "Siam Sindhorn Co., Ltd.: Financial Engineering in Emerging Markets", Centrale de Cas et de Médias Pédagogiques, F0395.

Dissertations

BUNKANWANICHA P., (2006), "Analyse Economique des Firmes sous Influence Politique", thèse de Doctorat en Sciences Économiques , Université de Paris 1-Panthéon-Sorbonne.

BUNKANWANICHA P., (2006), "Economic Analysis of Politically Connected Firms", Doctoral Dissertation in Economics , University of Paris 1-Panthéon-Sorbonne.

Faculté & Recherche