Dynamic models in corporate finance
On Thursday 22 March 2018 Erik Hetland Tvedt will hold a trial lecture on a prescribed topic and defend his thesis for the PhD degree at NHH.
Prescribed topic for the trial lecture:
The role of dynamic structural models in corporate finance
Trial lecture:
10:15 in Karl Borch Aud., NHH
Title of the thesis:
Essays on Dynamic Models in Corporate Finance
Summary:
This dissertation discusses buyouts, spin-offs and capital structure. The commonality of the chapters is the use dynamic structural models to investigate different research questions within the area of corporate finance.
The first chapter investigates the role of tax incentives in buyouts by setting up a dynamic structural model and subsequently calibrating it to data. The model predicts that removing the tax benefits of debt will decrease buyout activity by 16%. This suggests that tax savings from debt may motivate a non-trivial share of the buyout activity.
The second chapter investigates the economic impact of the M&A-market on firms' spin-off decisions by developing a structural dynamic model with endogenous M&A-market participation and spin-off decisions. The model predicts that firms that do spin-offs on average gain about 21% market value from the presence of an M&A-market. This suggests that the option to subsequently participate in the M&A-market is important for the firms' decision to do a spin-off.
The third chapter uses a dynamic structural model with endogenous capital structure to investigate endogenous investment and endogenous response to exogenous trade secret losses and how large the implications of a trade secret loss has to be in order to match the empirical implications of firms' reaction to the Inevitable Disclosure Doctrine, a legal doctrine designed to protect firms' trade secrets. This study shows that the implications have to be large, but not unreasonably large.
Defense:
12:15 in Karl Borch Aud., NHH
Members of the evaluation committee:
Professor Tore Leite (leader of the committee), Department of Finance, NHH
Professor Kristian Miltersen, Copenhagen Business School
Professor Snorre Lindset, NTNU
Supervisors:
Associate Professor Jørgen Haug (main supervisor), Department of Finance, NHH
Associate Professor Jøril Mæland, Department of Finance, NHH
The trial lecture and thesis defence will be open to the public. Copies of the thesis will be available from presse@nhh.no.