Similar Search Results

Morellec, Erwan; Zhdanov, Alexei - Institut für Schweizerisches Bankwesen <Zürich> - 2006

This paper analyzes the interaction between financial leverage and takeover activity. We develop a dynamic model of …, and takeover terms, in which the bidder with the lowest leverage wins the takeover contest. Based on the resulting … bidder is below the industry average and that acquirers should lever up after the takeover consummation. The model also …

Persistent link: https://www.econbiz.de/10005858240

Optionstheoretische Überlegungen zur Kapitalstrukturgestaltung und zur Kreditfinanzierung

Volkart, Rudolf - Institut für Schweizerisches Bankwesen <Zürich> - 1998

Die Kapitalstruktur, insbesondere das Finanzierungsverhältnis Fremdkapital/Eigenkapital (Financial Leverage), hat einen … entscheidenden Einfluss auf die Fremdkapital- und Eigenkapitalkosten... …

Persistent link: https://www.econbiz.de/10005857037

Stock Options and Managers Incentives to cheat

Chesney, Marc; Gibson-Asne, Rajna - Institut für Schweizerisches Bankwesen <Zürich>; … - 2006

We develop a continuous-time real options pricing model to study managersincentives to cheat in the presence of equity-based compensation policies.We show that managers incentives to cheat are strongly inﬂuenced by theefﬁciency of the justice. Our models main result is that managers...

Persistent link: https://www.econbiz.de/10005857972

Why Government Bonds are sold by Auction and Corporate Bonds by Posted-Price Selling

Habib, Michel A.; Ziegler, Alexandre - Institut für Schweizerisches Bankwesen <Zürich>; … - 2003

When information is costly, a seller may wish to prevent prospective buyers from acquiring information, for the cost of information acquisition is ultimately borne by the seller. A seller can achieve the desired prevention of information acquisition through posted-price selling, by offering...

Persistent link: https://www.econbiz.de/10005858705

Understanding the Economic Value of Legal Covenants in Investment Contracts : A Real-Options Approach to Venture Equity Contracts

Cossin, Didier; Leleux, Benoit; Saliasi, Entela - Institut für Schweizerisches Bankwesen <Zürich>; … - 2002

Valuing early-stage high-technology growth-oriented companies is a challenge to current valuation methodologies. Efforts are redirected towards the design of investment contracts which materially skew the distribution of payoffs in favor of the venture investors. In effect, limitations in...

Persistent link: https://www.econbiz.de/10005859127

Personal Taxes, Leverage, and Real Investment

Morellec, Erwan; Schürhoff, Norman - Institut für Schweizerisches Bankwesen <Zürich> - 2007

This paper examines the impact of capital gains taxation on ﬁrms investment and ﬁnancing decisions. We develop a real options model in which the timing of investment, the decision to default, and the ﬁrms capital structure are endogenouslyand jointly determined. Our analysis shows that...

Persistent link: https://www.econbiz.de/10005858029

The Informational Content of Equity Offerings with Rights and Firm Value

Dubois, Michel; Jeanneret, Pierre - Institut für Schweizerisches Bankwesen <Zürich>; … - 2004

The aim of this study is to test whether the relation between the informational content of equity offering announcements and their impact on the firm value depends on the motive of the offering. The use of the proceeds allows differentiating the equity issues according to the theories that...

Persistent link: https://www.econbiz.de/10005858305

What are the Determinants of the Capital Structure? : Some Evidence for Switzerland

Drobetz, Wolfgang; Fix, Roger - Institut für Schweizerisches Bankwesen <Zürich>; … - 2003

We test leverage predictions of the trade-off and pecking order models usingSwiss data. At an aggregate level, leverage of Swiss ﬁrms is comparativelylow, but the results depend crucially on the exact deﬁnition of leverage.Conﬁrming the pecking order model but contradicting the trade-off...

Persistent link: https://www.econbiz.de/10005858714

Stock Market Performance andthe Term Structure of Credit Spreads

Demchuk, Andriy; Gibson, Rajna - Institut für Schweizerisches Bankwesen <Zürich>; … - 2003

We build a two-factor structural model of default where the stock market index is one of the stochastic factors. In the model, we allow the firm to adjust its leverage in response to changes in the firm value and changes in the business climate, for which the return of the stock market index...

Persistent link: https://www.econbiz.de/10005858716

Capital Gains Taxes, Irreversible Investment, and Capital Structure

Schürhoff, Norman - Institut für Schweizerisches Bankwesen <Zürich> - 2005

This paper studies the corporate policy distortions caused by realization-based capital gains taxation at the personal level in a dynamic trade-off theory model. The lock-in effect of embedded capital gains creates severe conflicts of interest between incumbent and new investors. The firms...

Persistent link: https://www.econbiz.de/10005858786