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Do Measures of Financial Constraints Measure Financial Constraints?
Farre-Mensa, Joan; Ljungqvist, Alexander - National Bureau of Economic Research (NBER) - 2013
and sources of financing. On the other hand, privately held firms (particularly small ones) and public firms with below …
Persistent link: https://www.econbiz.de/10010951200
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Creditor rights and corporate risk-taking
Acharya, Viral V.; Amihud, Yakov; Litov, Lubomir - National Bureau of Economic Research (NBER) - 2009
We analyze the link between creditor rights and firms' investment policies, proposing that stronger creditor rights in bankruptcy reduce corporate risk-taking. In cross-country analysis, we find that stronger creditor rights induce greater propensity of firms to engage in diversifying...
Persistent link: https://www.econbiz.de/10008628428
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Real Options in a Dynamic Agency Model, with Applications to Financial Development, IPOs, and Business Risk
PHILIPPON, Thomas; Sannikov, Yuliy - National Bureau of Economic Research (NBER) - 2007
We study investment options in a dynamic agency model. Moral hazard creates an option to wait and agency conflicts affect the timing of investment. The model sheds light, theoretically and quantitatively, on the evolution of firms' dynamics, in particular the decline of the failure rate and the...
Persistent link: https://www.econbiz.de/10005710340
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Behavioral Corporate Finance: A Survey
Baker, Malcolm; Wurgler, Jeffrey; Ruback, Richard S. - National Bureau of Economic Research (NBER) - 2004
than fully rational. It views managerial financing and investment decisions as rational responses to securities market … evidence pertaining to each approach. Overall, the behavioral approaches help to explain a number of important financing and …
Persistent link: https://www.econbiz.de/10005034354
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The Real and Financial Implications of Corporate Hedging
Campello, Murillo; Lin, Chen; Ma, Yue; Zou, Hong - National Bureau of Economic Research (NBER) - 2010
We study the implications of hedging for firm financing and investment. We do so using an extensive, hand … loan agreements. These favorable financing terms, in turn, allow hedgers to invest more. Our tests characterize two exact … present shows that hedging has a first-order effect on firm financing and investment, and provides new insights into how …
Persistent link: https://www.econbiz.de/10008765893
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Liquidity Mergers
Campello, Murillo; Hackbarth, Dirk; Almeida, Heitor - National Bureau of Economic Research (NBER) - 2011
We study the interplay between corporate liquidity and asset reallocation opportunities. Our model shows that financially distressed firms are acquired by liquid firms in their industries even when there are no operational synergies associated with the merger. We call these transactions...
Persistent link: https://www.econbiz.de/10008804687
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Investment Busts, Reputation, and the Temptation to Blend in with the Crowd
Grenadier, Steven; Malenko, Andrey; Strebulaev, Ilya A. - National Bureau of Economic Research (NBER) - 2012
We provide a dynamic model of an industry in which agents strategically time liquidation decisions in an effort to protect their reputations. As in traditional models, agents delay liquidation attempting to signal their quality. However, when the industry faces a common shock that...
Persistent link: https://www.econbiz.de/10011188534
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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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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 conflicts. A 1991 Delaware bankruptcy ruling changed the nature of corporate directors' fiduciary duties in firms incorporated in that state. This change limited managers'...
Persistent link: https://www.econbiz.de/10009652869