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Bartram, Söhnke M. - 2019

From 1991 to 2006, U.S. stocks are more volatile than stocks of similar foreign firms. A firm's stock return volatility … in a country can be higher than the stock return volatility of a similar firm in another country for reasons that … contribute positively (good volatility) or negatively (bad volatility) to shareholder wealth and economic growth. We find that …

Persistent link: https://www.econbiz.de/10012905943

Financial Policies and the Financial Crisis : How Important was the Systemic Credit Contraction for Industrial Corporations?

Kahle, Kathleen M. - 2013

Although firm financial policies were affected by a credit contraction during the recent financial crisis, the impact of increased uncertainty and decreased growth opportunities was stronger than that of the credit contraction per se. From the start of the financial crisis (third quarter of...

Persistent link: https://www.econbiz.de/10013094404

Corporate deleveraging and financial flexibility

DeAngelo, Harry; Gonçalves, Andrei S.; Stulz, René M. - 2017

Most firms deleverage from their historical peak market-leverage (ML) ratios to near-zero ML, while also markedly increasing cash balances to high levels. Among 4,476 nonfinancial firms with five or more years of post-peak data, median ML is 0.543 at the peak and 0.026 at the later trough, with...

Persistent link: https://www.econbiz.de/10011969090

The dark side of outside directors : do they quit when they are most needed?

Fahlenbrach, Rüdiger; Low, Angie; Stulz, René M. - 2010

Following surprise independent director departures, affected firms have worse stock and operating performance, are more likely to restate earnings, face shareholder litigation, suffer from an extreme negative return event, and make worse mergers and acquisitions. The announcement returns to...

Persistent link: https://www.econbiz.de/10003979510

Are firms in "boring" industries worth less?

Chen, Jia; Hou, Kewei; Stulz, René M. - 2015

Using theories from the behavioral finance literature to predict that investors are attracted to industries with more salient outcomes and that therefore firms in such industries have higher valuations, we find that firms in industries that have high industry-level dispersion of profitability...

Persistent link: https://www.econbiz.de/10010531875

Did capital requirements and fair value accounting spark fire sales in distressed mortgage-backed securities?

Merrill, Craig B.; Nadauld, Taylor D.; Stulz, René M.; … - 2012

Much attention has been paid to the large decreases in value of non-agency residential mortgage-backed securities (RMBS) during the financial crisis. Many observers have argued that the fall in prices was partly driven by decreased liquidity and fire sales. We investigate whether capital...

Persistent link: https://www.econbiz.de/10009625918

Do US firms hold more cash?

Pinkowitz, Lee; Stulz, René M.; Williamson, Rohan - 2014

Using medians, U.S. firms do not hold more cash than similar foreign firms, irrespective of whether the foreign firms come from countries with good investor protection or not. With means, they do. The means, in contrast to the medians, are affected by U.S. multinationals. U.S. multinationals...

Persistent link: https://www.econbiz.de/10010353300

Is there a US high cash holdings puzzle after the financial crisis?

Pinkowitz, Lee; Stulz, René M.; Williamson, Rohan - 2013

Defining normal cash holdings as the holdings a firm with the same characteristics would have had in the late 1990s, we find that the average abnormal cash holdings of U.S. firms after the financial crisis amount to 10% of cash holdings, which represents an 87% increase in abnormal cash holdings...

Persistent link: https://www.econbiz.de/10009782423

Why Do Foreign Firms Have Less Idiosyncratic Risk than U.S. Firms?

Bartram, Söhnke M. - 2019

Using a large panel of firms across the world from 1991-2006, we show that the median foreign firm has lower idiosyncratic risk than a comparable U.S. firm. Country characteristics help explain variation in the level of idiosyncratic risk, but less so than firm characteristics. Idiosyncratic...

Persistent link: https://www.econbiz.de/10012906259

Why does capital no longer flow more to the industries with the best growth opportunities?

Lee, Dong Wook; Shin, Hyun-Han; Stulz, René M. - 2016

With functionally efficient capital markets, we expect capital to flow more to the industries with the best growth opportunities. As a result, these industries should invest more and see their assets grow more relative to industries with the worst growth opportunities. We find that industries...

Persistent link: https://www.econbiz.de/10011962227