Showing 1 - 10 of 1,259
analysis provides an explanation for why some firms only use little debt financing. Predictions made by our theory are in line …
Persistent link: https://www.econbiz.de/10011916757
This paper investigates the wealth effects of private equity (PE) investor purchases of shares in German quoted companies. It is the first study to analyze these effects for the German market which is particularly interesting due to its distinct characteristics with regard to the ownership...
Persistent link: https://www.econbiz.de/10010305716
We propose a new theory of suboptimal risk-taking based on contractual externalities. We examine an industry with a …
Persistent link: https://www.econbiz.de/10010500223
We examine a 'Rotten Kid' model (Becker 1974) where a player with social preferences interacts with an egoistic player. We assume that social preferences are intentionbased rather than outcome-based. In a very general multi-stage setting we show that any equilibrium must involve mutually unkind...
Persistent link: https://www.econbiz.de/10010315514
, endogenous formation of efficient long-run employment relations. Our results inform the theory of the firm by showing how …
Persistent link: https://www.econbiz.de/10010316905
We extend the literature on the effects of managerial entrenchment on capital structure to consider how safety-net subsidies and financial distress costs interact with managerial incentives to influence capital structure in U.S. commercial banking. Using cross-sectional data on publicly traded,...
Persistent link: https://www.econbiz.de/10010318364
We extend the literature on the effects of managerial entrenchment to consider how safety-net subsidies and financial distress costs interact with managerial incentives to influence capital structure in U.S. commercial banking. Using cross-sectional data on publicly traded, highest-level U.S....
Persistent link: https://www.econbiz.de/10010263221
An empirical model of managers' demand for agency goods is derived and estimated using the Almost Ideal Demand System of Deaton and Muellbauer (AER 1980). As in Jensen and Meckling (JFE 1976), we derive managers' demand for agency goods by maximizing a managerial utility function where managers...
Persistent link: https://www.econbiz.de/10010274320
This paper develops and empirically tests a model designed to distinguish the roleof real and …nancing frictions on fi…rms´investment, debt …nancing and equity …nancingpolicies. Real frictions include …xed costs of investment and adjustment costs. Financ-ing frictions include taxes,...
Persistent link: https://www.econbiz.de/10005868837
This paper analyzes the relation between agency conflicts and risk management in a contingent claims model of the firm. In contrast to previous contributions, our analysis incorporates not only stockholder-debtholder conflicts but also managerstockholder conflicts. In particular we consider a...
Persistent link: https://www.econbiz.de/10005858789