This paper explores how asymmetric information about borrower quality among syndicated lenders alters the incentive to refinance illiquid borrowers. The authors use a model in which lenders enter the market sequentially in two rounds of lending. Between the two rounds, a shock separates...

The common approach in empirical capital structure research has been to study the determinants of optimal leverage by studying the association between observed leverage and a set of explanatory variables. This approach has two major shortcomings. First, the observed leverage need not necessarily...

The paper analyzes the value creation benefits of the holding form of organization in France by empirically examining the effects of non-controlling stake purchases on target shareholder wealth, operational performance and bidder shareholder returns for a sample of 122 stake purchases in French...

The paper analyses the value creation benefits of the holding form of organization in France. For a sample of 122 non-controlling stake purchases in French listed companies, stakes purchased by holding companies generate non- significantly price reactions in target firms, compared to a...