Found 19 article(s) for author 'Aldo Musacchio'

Reinventing State Capitalism: Leviathan in Business, Brazil and Beyond

Reinventing State Capitalism: Leviathan in Business, Brazil and Beyond. Aldo Musacchio, July 26, 2013, Book Chapter. “In May 2007, the relatively unknown Brazilian firm JBS acquired Colorado-based Swift & Co for $1.4 billion and suddenly became the largest beef processing company in the world. Two years later, in September 2009, JBS made another surprising move by acquiring Pilgrim’s Pride, an iconic American meat processing firm, for $2.8 billion. Where had a rather unknown Brazilian firm gotten the funds to finance such acquisitions? The answer was simple. The Brazilian…” Link verified March 27, 2014

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Does the Law and Finance Hypothesis Pass the Test of History?

Does the Law and Finance Hypothesis Pass the Test of History? Aldo Musacchio, March 6, 2013, Paper. “For the body of work known as the law and finance literature, the development of financial markets and the concentration of ownership across countries is to a large extent the consequence of the legal system nations created or inherited decades or hundreds of years ago. Despite the seemingly historical nature of this explanation, most of the body of work supporting the law and finance hypothesis has been ahistorical…” May require purchase or user account. Link verified June 19, 2014

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State Capitalism and State-Owned Enterprise Reform

State Capitalism and State-Owned Enterprise Reform. Aldo Musacchio, March 2013, Case. “The note examines state capitalism in the twenty-first century. It introduces a series of topics and cases related to state capitalism, such as the debate about the causes of inefficiency in state owned enterprises, possible ways of turning them around, as well as a short discussion of sovereign wealth funds (SWFS), national champions, development banks, etc. The note explicitly links some of these topics to HBS cases designed to dive deeper into each subject…..” May require purchase or user account. Link verified August 26, 2014

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In Strange Company: The Puzzle of Private Investment in State-Controlled Firms

In Strange Company: The Puzzle of Private Investment in State-Controlled Firms. Aldo Musacchio, February 14, 2013, Paper. “A large legal and economic literature describes how state-owned enterprises (SOEs) suffer from a variety of agency and political problems. Less theory and evidence, however, have been generated about the reasons why state-owned enterprises listed in stock markets manage to attract investors to buy their shares (and bonds). In this Article, we examine this apparent puzzle and develop a theory of how legal and extralegal constraints allow mixed enterprises…” Link verified March 27, 2014

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These Are the Good Old Days: Foreign Entry and the Mexican Banking System

These Are the Good Old Days: Foreign Entry and the Mexican Banking System. Aldo Musacchio, January 10, 2013, Paper. “In 1997, the Mexican government reversed long-standing policies and allowed foreign banks to purchase Mexico’s largest commercial banks and relaxed restrictions on the founding of new, foreign-owned banks. The result has been a dramatic shift in the ownership structure of Mexico’s banks. For instance, while in 1991 only one percent of bank assets in Mexico were foreign owned, today they control 74 percent of assets. In no other country in the world has the penetration…” Link verified March 27, 2014

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Colonial Institutions, Trade Shocks, and the Diffusion of Elementary Education in Brazil, 1889-1930

Colonial Institutions, Trade Shocks, and the Diffusion of Elementary Education in Brazil, 1889-1930. Aldo Musacchio, December 18, 2012 Paper. “In this paper, we examine the role of trade shocks in promoting the diffusion of elementary education in subnational units in Brazil during a period (1889-1930) in which they had relative financial autonomy to collect export taxes and spend on public goods. The argument is that trade shocks affect asymetrically the tax revenues of state governments and, thus, their expenditures on elementary education per capita according to what crop mix they had…Link

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Do CEOs of State-Owned Enterprises Matter? Evidence from Brazil, 1973-1993

Do CEOs of State-Owned Enterprises Matter? Evidence from Brazil, 1973-1993. Aldo Musacchio, June 26, 2012, Paper. We study if CEOs and their backgrounds matter for the performance of state-owned enterprises (SOEs) exploiting the fact that these companies had different CEOs (with different backgrounds) in different moments in time. We construct a database of Brazilian SOEs between 1973 and 1993 and make three tests. First, we use variance decomposition to study CEO effects. Second, we look at how much of the variation in performance can be explained by CEOs who switch companies…”  Link

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Endowments, fiscal federalism and the cost of capital for states: evidence from Brazil, 1981-1930.

Endowments, fiscal federalism and the cost of capital for states: evidence from Brazil, 1981-1930. Aldo Musacchio, April 2010. “There is a large literature that aims to explain what determines country risk (defined as the difference between the yield of a sovereign’s bonds and the risk free rate). In this paper, we contribute to the discussion by arguing that an important explanatory factor is the impact that commodities have on the capacity to pay. We use a newly created database with state-level fiscal and risk premium data for Brazil states between 1891 and 1930 to show that Brazilian states with natural endowments…Link

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Bank Accounting Standards in Mexico: A Layman’s Guide to Changes 10 Years after the 1995 Bank Crisis

Bank Accounting Standards in Mexico: A Layman’s Guide to Changes 10 Years after the 1995 Bank Crisis Aldo Musacchio, April 2, 2008, Paper.  “After the 1995 crisis, the Mexican banking system experienced significant changes in bank accounting standards. Most of these changes took place between 1996 and 2001, and had a significant impact in the structure and interpretation of financial information of banks. This document explains the major changes on bank accounting, their purpose and structure, and discusses their impact on financial information reported by Mexican banks. It also provides the English equivalent of…” Link

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