Similar Search Results

Zhang, Lu; Wu, Jin Ginger; Zhang, X. Frank - National Bureau of Economic Research (NBER) - 2007

Interpreting accruals as working capital investment, we hypothesize that firms rationally adjust their investment to respond to discount rate changes. Consistent with the optimal investment hypothesis, we document that (i) the predictive power of accruals for future stock returns increases with...

Persistent link: https://www.econbiz.de/10005828684

State Capitalism vs. Private Enterprise

Chen, Donghua; Jiang, Dequan; Ljungqvist, Alexander; … - National Bureau of Economic Research (NBER) - 2015

We study the efficiency of internal capital markets at state-controlled and privately owned business groups in China. Using highly granular data on within-group capital flows, we document stark differences: while private groups allocate more capital to units with better investment opportunities,...

Persistent link: https://www.econbiz.de/10011165127

Target Revaluation after Failed Takeover Attempts – Cash versus Stock

Malmendier, Ulrike; Opp, Marcus Matthias; Saidi, Farzad - National Bureau of Economic Research (NBER) - 2012

Cash- and stock-financed takeover bids induce strikingly different target revaluations. We exploit detailed data on … unsuccessful takeover bids between 1980 and 2008, and show that targets of cash offers are revalued on average by +15% after deal … longer horizons. We find no evidence that future takeover activities or operational changes explain these differences. While …

Persistent link: https://www.econbiz.de/10011264934

Winning by Losing: Evidence on the Long-Run Effects of Mergers

Malmendier, Ulrike; moretti, enrico; Peters, Florian S. - National Bureau of Economic Research (NBER) - 2012

Do acquirors profit from acquisitions, or do acquiring CEOs overbid and destroy shareholder value? We present a novel approach to estimating the long-run abnormal returns to mergers exploiting detailed data on merger contests. In the sample of close bidding contests, we use the loser's...

Persistent link: https://www.econbiz.de/10011227917

Executives' "Off-The-Job" Behavior, Corporate Culture, and Financial Reporting Risk

Davidson, Robert; Dey, Aiyesha; Smith, Abbie J. - National Bureau of Economic Research (NBER) - 2012

We examine how executives' behavior outside the workplace, as measured by their ownership of luxury goods (low "frugality") and prior legal infractions, is related to financial reporting risk. We predict and find that CEOs and CFOs with a legal record are more likely to perpetrate fraud. In...

Persistent link: https://www.econbiz.de/10011227925

Do Acquisitions Relieve Target Firms' Financial Constraints?

Erel, Isil; Jang, Yeejin; Weisbach, Michael S. - National Bureau of Economic Research (NBER) - 2013

Managers often claim that an important source of value in acquisitions is the acquiring firm's ability to finance investments for the target firm. This claim implies that targets are financially constrained prior to being acquired and that these constraints are eased following the acquisition....

Persistent link: https://www.econbiz.de/10011188516

The Mystery of Zero-Leverage Firms

Strebulaev, Ilya A.; Yang, Baozhong - National Bureau of Economic Research (NBER) - 2012

This paper documents the puzzling evidence that a substantial number of large public non-financial US firms follow a zero-debt policy. Over the 1962-2009 period, on average 10.2% of such firms have zero debt and almost 22% have less than 5% book leverage ratio. Neither industry nor size can...

Persistent link: https://www.econbiz.de/10011188562

Tailspotting: Identifying and profiting from CEO vacation trips

Yermack, David - National Bureau of Economic Research (NBER) - 2012

This paper shows close connections between CEOs' absences from headquarters and corporate news disclosures. I identify CEO absences by merging corporate jet flight histories with records of CEOs' property ownership near leisure destinations. I find that CEOs go to their vacation homes just after...

Persistent link: https://www.econbiz.de/10011188571

Do Private Equity Managers Earn Their Fees? Compensation, Ownership, and Cash Flow Performance

Robinson, David T.; Sensoy, Berk A. - National Bureau of Economic Research (NBER) - 2012

We study the relation between compensation practices, incentives, and performance in private equity using new data that connect ownership structures, management contracts, and quarterly cash flows for a large sample of buyout and venture capital funds from 1984-2010. Although many critics of...

Persistent link: https://www.econbiz.de/10011188572

Evasive Shareholder Meetings

Yermack, David; Li, Yuanzhi - National Bureau of Economic Research (NBER) - 2014

We study the location and timing of annual shareholder meetings. When companies move their annual meetings a great distance from headquarters, they tend to announce disappointing earnings results and experience pronounced stock market underperformance in the months after the meeting. Companies...

Persistent link: https://www.econbiz.de/10010821769