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Herding dynamics in exchange groups: Evidence from Euronext

Economou, Fotini; Gavriilidis, Konstantinos; Goyal, Abhinav - In: Journal of International Financial Markets, … 34 (2015) C, pp. 228-244

This study investigates in the context of the Euronext, whether joining an exchange group affects herding in the group … of the group's member-markets and the outbreak of financial crises. We find that herding is significant post-merger in … all four constituent equity markets (Belgium, France, the Netherlands and Portugal) of the Euronext, with herding in …

Persistent link: https://www.econbiz.de/10011189487

Corporate payout, cash retention, and the supply of credit: Evidence from the 2008–2009 credit crisis

Bliss, Barbara A.; Cheng, Yingmei; Denis, David J. - In: Journal of Financial Economics 115 (2015) 3, pp. 521-540

We document significant reductions in corporate payouts-both dividends and (to a larger extent) share repurchases-during the 2008–2009 financial crisis. Payout reductions are more likely in firms with higher leverage, more valuable growth options, and lower cash balances, i.e., those more...

Persistent link: https://www.econbiz.de/10011208262

Valuing diversity: CEOs' career experiences and corporate investment

Hu, Conghui; Liu, Yu-Jane - In: Journal of Corporate Finance 30 (2015) C, pp. 11-31

This paper investigates the impact of CEOs' career experiences on corporate investment decisions. We hypothesize that CEOs with more diverse career experiences are less likely to be constrained by insufficient internal capital. The potential mechanism is that rich external experiences help CEOs...

Persistent link: https://www.econbiz.de/10011190851

Financing constraints, cash-flow risk, and corporate investment

Hirth, Stefan; Viswanatha, Marc - In: Journal of Corporate Finance 17 (2011) 5, pp. 1496-1509

Using an analytically tractable two-period model of a financially constrained firm, we derive an investment threshold that is U-shaped in cash holdings. We show analytically the relevant trade-offs leading to the U-shape: the firm balances financing costs for present and future investment,...

Persistent link: https://www.econbiz.de/10010574236

Learning from peers' stock prices and corporate investment

Foucault, Thierry; Fresard, Laurent - In: Journal of Financial Economics 111 (2014) 3, pp. 554-577

Peers' valuation matters for firms' investment: a one standard deviation increase in peers' valuation is associated with a 5.9% increase in corporate investment. This association is stronger when a firm's stock price informativeness is lower or when its managers appear less informed. Also, the...

Persistent link: https://www.econbiz.de/10010743553

Corporate investment, government control, and financing channels: Evidence from China's Listed Companies

Firth, Michael; Malatesta, Paul H.; Xin, Qingquan; Xu, … - In: Journal of Corporate Finance 18 (2012) 3, pp. 433-450

We investigate the relation between the internally generated cash flows and fixed asset investments of Chinese firms and find that it is U-shaped. Cash flow and investment are negatively related for low levels of cash flow but positively related for high levels of cash flow. We find that...

Persistent link: https://www.econbiz.de/10010577620

CEO age and the riskiness of corporate policies

Serfling, Matthew A. - In: Journal of Corporate Finance 25 (2014) C, pp. 251-273

Prior theoretical work generates conflicting predictions with respect to how CEO age impacts risk-taking behavior. Consistent with the prediction that risk-taking behavior decreases as CEOs become older, I document a negative relation between CEO age and stock return volatility. Further analyses...

Persistent link: https://www.econbiz.de/10010753534

The Political Economy of Bank and Equity Dominance

Perotti, Enrico C; von Thadden, Ernst-Ludwig - C.E.P.R. Discussion Papers - 2003

Legislation affects corporate governance and the return to human and financial capital. We allow the preference of a political majority to determine both the governance structure and the extent of labour rents. In a society where median voters have relatively more at stake in the form of human...

Persistent link: https://www.econbiz.de/10005667054

Asset liquidity, corporate investment, and endogenous financing costs

Flor, Christian Riis; Hirth, Stefan - In: Journal of Banking & Finance 37 (2013) 2, pp. 474-489

We analyze how the liquidity of real and financial assets affects corporate investment. The trade-off between liquidation costs and underinvestment costs implies that low-liquidity firms exhibit negative investment sensitivities to liquid funds, whereas high-liquidity firms have positive...

Persistent link: https://www.econbiz.de/10010595284

Externalities of public firm presence: Evidence from private firms' investment decisions

Badertscher, Brad; Shroff, Nemit; White, Hal D. - In: Journal of Financial Economics 109 (2013) 3, pp. 682-706

Public firms provide a large amount of information through their disclosures. In addition, information intermediaries publicly analyze, discuss, and disseminate these disclosures. Thus, greater public firm presence in an industry should reduce uncertainty in that industry. Following the...

Persistent link: https://www.econbiz.de/10010681717