Showing 1 - 10 of 61
We examine the determinants of debt maturity in the Australian capital market with the Top 400 firms listed on the Australian Securities Exchange for the period 1989 to 2006. We find that Australian firms not only exhibit a positive leverage-maturity relationship but also use short-term debt to...
Persistent link: https://www.econbiz.de/10013134972
Corporate debt maturity is a concave function of financial leverage when the debt has restrictive asset-based covenants attached. This concavity kicks in earlier with increasing covenant tightness and is absent when firms have no restrictive asset-based covenants. We argue that this concavity is...
Persistent link: https://www.econbiz.de/10012868475
We examine the role that secondary Mathematics plays in the performance of students in introductory Business courses. Students who pass more advanced secondary Mathematics subjects perform significantly better in introductory Business courses. This 'Mathematics effect' is significantly stronger...
Persistent link: https://www.econbiz.de/10012771935
The leverage and debt maturity decisions of real estate firms are related. However, most empirical capital structure studies implicitly assume that they are made independently. We explore both these dimensions of capital structure in US real estate companies and REITs and find that leverage and...
Persistent link: https://www.econbiz.de/10010799758
The leverage and debt maturity choices of real estate companies are interdependent, and are not made separately as is often assumed in the literature. We use three-stage least squares (3SLS) regression analysis to explore this interdependence for a sample of listed U.S. real estate companies and...
Persistent link: https://www.econbiz.de/10013133058
The value premium is well established in empirical asset pricing, but to date there is little understanding as to its fundamental drivers. We use a stochastic earnings valuation model to establish a direct link between the volatility of future earnings growth and firm value. We illustrate that...
Persistent link: https://www.econbiz.de/10013114234
We provide theory and evidence to complement Choi's [RFS, 2013] important new insights on the returns to equity in 'value' firms. We show that higher future earnings growth ameliorates the value-reducing effect of leverage and, because the market for earnings is incomplete, reduces the...
Persistent link: https://www.econbiz.de/10013049506
We examine the effects of equity ownership by exchange traded funds (ETFs) on corporate cash holdings. We find that firms increase their cash holdings in response to higher anticipated risks generated by ETFs. To establish a causal interpretation, we use the Russell 1000/2000 index...
Persistent link: https://www.econbiz.de/10014104517
This paper examines why non-financial publicly traded firms knowingly issue wealth destroying Rule 144A debt, which is associated with a negative announcement return and a higher yield. We provide a plausible “demand-side” explanation (i.e. last-resort debt financing) for the motivation for...
Persistent link: https://www.econbiz.de/10013035216
This paper investigates the relation between unionization and corporate governance practices in the United States. For unionized firms to secure a bargaining advantage, we hypothesize that the managers of such firms will optimally adopt structures of governance that increase managerial power and...
Persistent link: https://www.econbiz.de/10012920120