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Anderson, Ronald W.; Carverhill, Andrew - C.E.P.R. Discussion Papers - 2007

consistent with recent explorations of pecking order theory. We calculate the agency costs generated by the conflict of interest …

Persistent link: https://www.econbiz.de/10005662034

Disagreement and Flexibility: A Theory of Optimal Security Issuance and Capital Structure

Boot, Arnoud W A; Thakor, Anjan - C.E.P.R. Discussion Papers - 2003

strongest implication of this theory of capital structure evolution is that optimal capital structure is essentially dynamic … prices are low. The theory explains many stylized facts that fly in the face of existing capital structure theories and also … generates new testable predictions. Moreover, the theory can rationalize the use of debt in the absence of taxes, agency costs …

Persistent link: https://www.econbiz.de/10005666532

Local Ownership as Private Information: Evidence on the Monitoring-Liquidity Trade-Off

Gaspar, José-Miguel; Massa, Massimo - C.E.P.R. Discussion Papers - 2004

This Paper investigates the impact of ownership patterns on the way the firm is monitored, on the liquidity of its shares, and on its stock price. Building on the literature showing that local mutual funds (funds holding geographically close firms) enjoy superior returns due to private...

Persistent link: https://www.econbiz.de/10005497985

Subcontracting in International Asset Management: New Evidence on Market Integration

Massa, Massimo; Schumacher, David - C.E.P.R. Discussion Papers - 2015

We study the decisions of international asset managers to outsource portfolio management of their funds and we link these decisions to market integration. Using a structural model of selfselection, we endogenize the decision to outsource in a comprehensive sample of international mutual funds...

Persistent link: https://www.econbiz.de/10011196041

Long Term Changes in Voting Power and Control Structure following the Unification of Dual Class Shares

Lauterbach, Beni; Yafeh, Yishay - C.E.P.R. Discussion Papers - 2009

We follow the evolution of ownership structure in a sample of 80 Israeli companies that unified their dual-class shares in the 1990s, and compare it with a control sample of firms that maintained their dual share structure at least until 2000. Our main findings are as follows. First, controlling...

Persistent link: https://www.econbiz.de/10005000444

Limits of Arbitrage and Corporate Financial Policy

Massa, Massimo; Peyer, Urs; Tong, Zhenxu - C.E.P.R. Discussion Papers - 2005

timing theory, we find more equity issues and increases in investment in response to higher index addition announcement … with the market timing theory of Stein (1996) and supports a ‘limits of arbitrage’ story in which the stocks display a …

Persistent link: https://www.econbiz.de/10005661446

Bookbuilding and Strategic Allocation

Cornelli, Francesca; Goldreich, David - C.E.P.R. Discussion Papers - 1999

Under the bookbuilding procedure, an investment banker solicits bids for shares from institutional investors prior to pricing the issue. After collecting this demand information, the investment banker prices the issue and allocates shares to the investors. We examine the books from 39...

Persistent link: https://www.econbiz.de/10005666528

Bookbuilding: How Informative is the Order Book?

Cornelli, Francesca; Goldreich, David - C.E.P.R. Discussion Papers - 2001

When using a formal bookbuilding procedure, underwriters observe the demand curves of investors as stated in the ‘book’ prior to pricing shares in an equity issue. The purpose of this Paper is to examine whether the investment bank uses the information in the book when setting the issue...

Persistent link: https://www.econbiz.de/10005791587

A Model of Corporate Liquidity

Anderson, Ronald W.; Carverhill, Andrew - C.E.P.R. Discussion Papers - 2005

We study a continuous time model of a levered firm with fixed assets generating a cash flow that fluctuates with business conditions. Since external finance is costly, the firm holds a liquid (cash) reserve to help survive periods of poor business conditions. Holding liquid assets inside the...

Persistent link: https://www.econbiz.de/10005123584

Why Do Companies Go Public? An Empirical Analysis

Pagano, Marco; Panetta, Fabio; Zingales, Luigi - C.E.P.R. Discussion Papers - 1996

This paper empirically analyses the determinants of an initial public offering (IPO) and the consequences of this decision on a company's investment and financial policy. We compare both the ex-ante and the ex-post characteristics of IPOs with those of a large sample of privately held companies...

Persistent link: https://www.econbiz.de/10005123719