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Credit Lines as Monitored Liquidity Insurance : Theory and Evidence
Acharya, Viral V. - 2013
form of monitored liquidity insurance. Bank monitoring and resulting credit line revocations help control illiquidity … because the cost of monitored liquidity insurance increases with liquidity risk. We exploit a quasi-experiment around the …
Persistent link: https://www.econbiz.de/10012459769
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Is There a Diversification Discount in Financial Conglomerates?
Laeven, Luc - 2005
influences their market valuations. We find that there is a diversification discount: The market …not sufficiently large to produce a diversification premium …
Persistent link: https://www.econbiz.de/10012467179
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Product Repositioning by Merging Firms
Atalay, Enghin; Sorensen, Alan T.; Sullivan, Christopher J. - National Bureau of Economic Research - 2023
We examine merging firms' additions and removals of products for a sample of 66 mergers across a wide variety of consumer packaged goods markets. We find that mergers lead to a net reduction in the number of products offered by merging firms. Merging firms tend to both drop and add products at...
Persistent link: https://www.econbiz.de/10014287330
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Liquidity Mergers
Almeida, Heitor - 2011
associated with the merger. We call these transactions "liquidity mergers," since their main purpose is to reallocate liquidity …
Persistent link: https://www.econbiz.de/10012461933
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Financial Structure, Liquidity, and Firm Locations
Almazan, Andres; De Motta, Adolfo - 2007
This paper investigates the relation between a firm's location and its corporate finance decisions. We develop a simple model where being located within an industry cluster increases opportunities to make acquisitions, and to facilitate those acquisitions, firms within clusters maintain more...
Persistent link: https://www.econbiz.de/10012464981
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Corporate Liquidity, Acquisitions, and Macroeconomic Conditions
Erel, Isil - 2017
Firms hold liquid assets to enhance their ability to invest efficiently when external financing costs are high, especially during poor macroeconomic conditions. Using a sample of 47,378 acquisitions from 36 countries between 1997 and 2014, we study how the relation between firms' cash holdings...
Persistent link: https://www.econbiz.de/10012455188
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Does Diversification Destroy Value? Evidence From Industry Shocks
Lamont, Owen - 2000
Does corporate diversification reduce shareholder value? Since firms endogenously choose to diversify, exogenous … variation in diversification is necessary in order to draw inferences about the causal effect. We examine changes in the within … investment, are negatively related to firm value. Thus diversification destroys value, consistent with the inefficient internal …
Persistent link: https://www.econbiz.de/10012470947
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Corporate Focusing and Internal Capital Markets
Schlingemann, Frederik P. - 1999
A sample of firms that focus by divesting at least one segment allows us to investigate the characteristics of segments divested as well as the nature of focusing firms. We find that firms are more likely to divest segments unrelated to the core activities of the firm and that the probability...
Persistent link: https://www.econbiz.de/10012471612
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Both Sides of Corporate Diversification : The Value Impacts of Geographic and Industrial Diversification
Bodnar, Gordon M. - 1997
This paper examines the effect of geographic and industrial diversification on firm value for a sample of over 20 … diversification results in over-estimation of the negative value impact of industrial diversification, but has little impact on … estimates of the positive value impact of geographic diversification …
Persistent link: https://www.econbiz.de/10012472587
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Corporate Acquisitions, Diversification, and the Firm's Lifecycle
Arikan, Asli M. - 2011
Lifecycle theories of mergers and diversification predict that firms make acquisitions and diversify when their … being equally acquisitive but more so than middle-aged firms. Firms that go public during the merger/IPO wave of the 1990s …
Persistent link: https://www.econbiz.de/10012461196