Similar Search Results

Stock liquidity and corporate cash holdings

Nyborg, Kjell G.; Wang, Zexi - 2013

We advance the feedback/cash as ammunition hypothesis, namely that firms hold cash to address feedback from stock prices to cash ows and growth opportunities. Firms with more liquid stocks are expected to hold more cash, the opposite of the prediction from a standard information asymmetry...

Persistent link: https://www.econbiz.de/10010256421

Competition, cash holdings, and financing decisions

Morellec, Erwan; Nikolov, Boris; Zucchi, Francesca - 2013

We use a dynamic model of cash management in which firms face competitive pressure to show that competition increases corporate cash holdings as well as the frequency and size of equity issues. In our model, these effects are driven by small, financially constrained firms, in contrast with the...

Persistent link: https://www.econbiz.de/10010258537

What are the shareholder value implications of non-voted shareholder proposals?

Couvert, Maxime - 2018

Managerial resistance precludes half of shareholder-initiated proposals from reaching the ballot stage. I construct a novel dataset of excluded and withdrawn proposals from the Securities and Exchange Commission's responses to managers' exclusion requests. An examination of announcement returns...

Persistent link: https://www.econbiz.de/10011976966

Liquidity, innovation, and endogenous growth

Malamud, Semyon; Zucchi, Francesca - 2016

financing and hoard cash reserves to maintain financial flexibility. We show that financing frictions slow down Schumpeterian …

Persistent link: https://www.econbiz.de/10011412323

Corporate cash holdings : stock liquidity and the repurchase motive

Nyborg, Kjell G.; Wang, Zexi - 2019

We show that enhanced stock liquidity increases a firm’s propensity to hold cash using tick-size decimalization for identification. Our finding is surprising in light of the view that improved stock liquidity reduces financial constraints. As an explanation, we propose that there is a...

Persistent link: https://www.econbiz.de/10012051977

How valuable is financial flexibility when revenue stops? : evidence from the COVID-19 crisis

Fahlenbrach, Rüdiger; Rageth, Kevin; Stulz, René M. - 2020 - Revised May 17, 2020

Firms with greater financial flexibility should be better able to fund a revenue shortfall resulting from the COVID-19 … shock and benefit less from policy responses. We find that firms with high financial flexibility within an industry … experience a stock price drop lower by 26% or 9.7 percentage points than those with low financial flexibility. This differential …

Persistent link: https://www.econbiz.de/10012216704

Where do institutional investors seek shelter when disaster strikes? : evidence from COVID-19

Glossner, Simon; Matos, Pedro; Ramelli, Stefano; … - 2020

During the COVID-19 market crash, U.S. stocks with higher institutional ownership -- in particular, those held more by active, short-term, and more exposed institutions -- performed worse. Portfolio changes through the first quarter of 2020 reveal that institutional investors prioritized...

Persistent link: https://www.econbiz.de/10012271074

Do analysts' preferences affect corporate policies?

Degeorge, François; Derrien, François; Kecskés, Ambrus; … - 2013

Equity research analysts tend to cover firms about which they have favorable views. We exploit this tendency to infer analysts' preferences for corporate policies from their coverage decisions. We then use exogenous analyst disappearances to examine the effect of these preferences on corporate...

Persistent link: https://www.econbiz.de/10009750620

Consistent valuation of project finance and LBO's using the flows-to-equity method

Cooper, Ian; Nyborg, Kjell G. - 2010

A common method of valuing the equity in highly leveraged transactions is the flows-to-equity method. When applying this method various formulas can be used to calculate the time-varying cost of equity. In this paper we show that some commonly used formulas are inconsistent with the assumptions...

Persistent link: https://www.econbiz.de/10008797682

Dynamic capital structure under managerial entrenchment : evidence from a structural estimation

Morellec, Erwan; Nikolov, Boris; Schürhoff, Norman - 2009

We develop a dynamic tradeoff model to examine the importance of manager-shareholder conflicts in capital structure choice. Using panel data on leverage choices and the model's predictions for different statistical moments of leverage, we show that while refinancing costs help explain the...

Persistent link: https://www.econbiz.de/10003970297

1
2
3
4
5
6
7
8
9
10
Next
Last