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Hutson, Elaine
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Hutson, Elaine
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Hutson, Elaine
Research Output
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Publication
Competitiveness implications for Ireland of EU enlargement
2002-09, Barry, Frank, Hannan, Aoife, Hutson, Elaine, Kearney, Colm
Ten states, primarily from Central and Eastern Europe, are likely to be admitted to the EU within the next few years. The present paper assesses the competitiveness
implications of this enlargement for Ireland. Four specific topics are considered: the trade effects, the implications for Ireland's ability to attract FDI, the likely levels of immigration from Central and Eastern Europe and its consequences, and the budgetary
implications for the Irish Exchequer.
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Is there a high technology pecking order? An investigation of the capital structure of NTBFs in the Irish software sector
2004-09, Hogan, Teresa, Hutson, Elaine
This paper examines the financing of 117 privately held new technology-based firms (NTBFs) in the Irish software product sector. We advance the high-technology pecking order hypothesis (HTPOH) to explain the dominance of external equity over debt in NTBFs. Using founders’ opinions and perceptions on various financing issues, we find evidence consistent with four implications of the HTPOH. Sample firm founders perceive low tax benefits of debt, and very high levels of business risk as reflected in pessimism about their likelihood of survival even with adequate financing. In addition, founders perceive greater information asymmetries in debt than in private equity markets. This finding is consistent with the spirit of Myers’ (1984) and Myers and Majluf’s (1984) pecking order hypothesis in that firms prefer sources of finance associated with the least information asymmetry. A related finding is that founders believe issuing equity sends a positive signal to clients, suppliers and financiers.
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What factors determine the use of venture capital? Evidence from the Irish software sector
2004, Hogan, Teresa, Hutson, Elaine
We address the venture capital financing issue from the firm’s perspective. Using survey data for 110 new technology-based firms (NTBFs) in the Irish software sector, we assess the extent to which 5 human capital and 3 other variables determine the firm’s use of venture capital. Education of the lead founder to degree level is the only significant human capital variable, and it is directly related to the likelihood of being venture capital-backed. Venture capital-backed firms have significantly higher start-up costs, and their founders are less averse to loss of control than non-venture capital-backed firms. We conclude that the use of venture capital is dictated largely by the willingness of founders to relinquish control.
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The performance and diversification benefits of funds of hedge funds
2004, Denvir, Emily, Hutson, Elaine
We examine the performance and diversification potential of 332 funds of hedge funds (FOHFs) for the period from January 1990 to May 2003. Consistent with prior studies, we find that FOHFs appear to underperform the hedge fund index on a risk-adjusted basis. However, FOHFs have characteristics that offset their apparent underperformance. Their returns do not suffer from negative skewness that is a feature of many hedge fund strategies.
In addition, we find that FOHFs have lower correlations (than the hedge fund index) with stock indices in both bull and bear markets, making them a better diversification tool in equity portfolios. For bond portfolios, however, FOHFs have no diversification advantage over hedge fund indexing.
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Are fund of hedge fund returns asymmetric?
2004, Lynch, Margaret, Hutson, Elaine, Stevenson, Max
We examine the return distributions of 332 funds of hedge funds and associated indices.
Over half of the sample is significantly skewed according to the skewness statistic, and these are split 50/50 positive and negative. However, we argue that the skewness statistic can lead to erroneous inferences regarding the nature of the return distribution, because the test
statistic is based on the normal distribution. Using a series of tests that make minimal assumptions about the shape of the underlying distribution, we find very little skewness in the returns of funds of funds, and when we do find evidence of asymmetry it is close to the mean rather than in the tails.
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Hedge funds : the case for disclosure regulation
2003, Hutson, Elaine, Donabedian, Michelle
Unlike mutual and pension funds, which are heavily regulated in most juristrictions, hedge funds are largely unregulated. Because they are not required to report to regulators and to the public, data on hedge fund performance are highly biased, overestimating returns and underestimating risk. Recent debate regarding regulation has centred on market integrity and systematic risk issues. This articles presents the case for a change in focus towards consumer protection as the most important regulatory issue and recommends that performance reporting should be made mandatory.
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Publication
Competitiveness implications for Ireland of EU enlargement
2003, Barry, Frank, Hannan, Aoife, Hutson, Elaine, Kearney, Colm
Subject to ratification, a further ten states, primarily from Central and Eastern Europe will accede to the EU in May 2004. Another two, and possibly three, CEE states are likely to join in 2007. The present paper assesses the competitiveness implications of this phase of EU expansion for Ireland. Four specific topics are considered: the opportunities for trade and investment expansion, the implications for Ireland's ability to attract FDI, the likely levels and consequences of immigration from Central and Eastern Europe, and the budgetary implications for the Irish Exchequer.