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How Do Firm Financial Conditions Affect Product Quality and Pricing?
Phillips, Gordon M.; Sertsios, Giorgo - National Bureau of Economic Research (NBER) - 2011
We analyze the interaction of firm product quality and pricing decisions with financial distress and bankruptcy in the airline industry. We consider an airline's choices of quality and price as dynamic decisions that trade off current cash flows for future revenue. We examine how airline...
Persistent link: https://www.econbiz.de/10009223311
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Financing Decisions and Product Introductions of Private and Publicly Traded Firms
Phillips, Gordon M.; Sertsios, Giorgo - National Bureau of Economic Research (NBER) - 2014
We exploit Medicare national coverage reimbursement approvals of medical devices as a quasi-natural experiment to investigate how private and publicly traded firm financing decisions and product introductions respond to exogenous changes in investment opportunities. We find that publicly traded...
Persistent link: https://www.econbiz.de/10010950886
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Outside Purchase Contracts, Human Capital and Firm Capital Structure
Phillips, Gordon M.; Moon, S. Katie - National Bureau of Economic Research (NBER) - 2014
We examine the impact of outside purchase contracts on firm risk and firm capital structure. We find that firms with more outside purchase contracts have less risky cash flows. Despite these less risky cash flows, firms with these contracts also have less financial leverage especially when they...
Persistent link: https://www.econbiz.de/10010951012
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Loans on Sale: Credit Market Seasonality, Borrower Need, and Lender Rent Seeking
Petersen, Mitchell; Murfin, Justin - National Bureau of Economic Research (NBER) - 2014
The market for corporate credit is characterized by significant seasonal variation, both in interest rates and the volume of new lending. Firms borrowing from banks during seasonal "sales" in late spring and fall issue at 19 basis points cheaper than winter and summer borrowers. Issuers during...
Persistent link: https://www.econbiz.de/10010951301
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The Twilight Zone: OTC Regulatory Regimes and Market Quality
Leuz, Christian; Brüggemann, Ulf; Kaul, Aditya; … - National Bureau of Economic Research (NBER) - 2013
We analyze a comprehensive sample of more than 10,000 U.S. stocks in the OTC market. As little is known about this market, we first characterize OTC firms by trading venue and provide evidence on survival, success, frequency of venue changes, reporting status, and trading activity. A large...
Persistent link: https://www.econbiz.de/10010969441
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Boarding a Sinking Ship? An Investigation of Job Applications to Distressed Firms
Brown, Jennifer; Matsa, David A. - National Bureau of Economic Research (NBER) - 2012
We use novel data from a leading online job search platform to examine the impact of corporate distress on firms’ ability to attract job applicants. Survey responses suggest that job seekers accurately perceive firms’ financial condition, as measured by companies’ credit default swap...
Persistent link: https://www.econbiz.de/10010950763
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Do Measures of Financial Constraints Measure Financial Constraints?
Farre-Mensa, Joan; Ljungqvist, Alexander - National Bureau of Economic Research (NBER) - 2013
they were constrained: public firms classified as constrained have no trouble raising debt when their demand for debt …
Persistent link: https://www.econbiz.de/10010951200
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Fiduciary Duties and Equity-Debtholder Conflicts
Becker, Bo; Stromberg, Per - National Bureau of Economic Research (NBER) - 2011
We use an important legal event as a natural experiment to examine the effect of management fiduciary duties on equity-debt … in that state. This change limited managers' incentives to take actions favoring equity over debt for firms in the … reduced firm risk, consistent with a decrease in debt-equity conflicts of interest. The changes are isolated to firms …
Persistent link: https://www.econbiz.de/10009652869
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Rollover Risk and Market Freezes
Acharya, Viral V.; Gale, Douglas; Yorulmazer, Tanju - National Bureau of Economic Research (NBER) - 2010
. The debt capacity of the assets (the maximum amount that can be borrowed using the assets as collateral) depends on the …, because debt must be rolled over frequently, we show that the debt capacity is lower than the fundamental value of the asset …
Persistent link: https://www.econbiz.de/10008601707
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Implicit Guarantees and Risk Taking: Evidence from Money Market Funds
Kacperczyk, Marcin; Schnabl, Philipp - National Bureau of Economic Research (NBER) - 2011
A firm's termination generates bankruptcy costs. This may create incentives for a firm's owner to bail out a firm in bankruptcy and to curb the firm's risk taking outside bankruptcy. We analyze the role of such implicit guarantees in the context of financial institutions that sponsor money...
Persistent link: https://www.econbiz.de/10009251486