Showing 1 - 10 of 14
The average cash-to-assets ratio for U.S. industrial firms more than doubles from 1980 to 2006. A measure of the economic importance of this increase in cash holdings is that at the end of the sample period, the average firm can pay back all of its debt obligations with its cash holdings; in...
Persistent link: https://www.econbiz.de/10012726926
In this paper, we explain how enterprise risk management creates value for shareholders. In contrast to the existing finance literature, we emphasize the organizational benefits of risk management. We show how a firm should choose its risk appetite and measure risk when implementing enterprise...
Persistent link: https://www.econbiz.de/10012733166
Merton Miller was at the center of the transformation of academic finance from a descriptive field to a science. His principal contribution to this transformation was the introduction of arbitrage arguments which underlie most theoretical contributions in finance and remain central to the way...
Persistent link: https://www.econbiz.de/10012733641
shareholders of firms listed in the U.S. cannot extract as many private benefits from control compared to controlling shareholders …
Persistent link: https://www.econbiz.de/10012785977
Despite the disappearance of formal barriers to international investment across countries, we find that the average home bias of US investors towards the 46 countries with the largest equity markets did not fall from 1994 to 2004 when countries are equally weighted but fell when countries are...
Persistent link: https://www.econbiz.de/10012707986
We consider IPO firms from 1970 to 2001 and examine the evolution of their insider ownership over time to understand better why and how U.S. firms that become widely held do so. In our sample, a majority of firms has insider ownership below 20% after ten years. We find that a firm's stock market...
Persistent link: https://www.econbiz.de/10012708089
We compare the governance of foreign firms to the governance of similar U.S. firms. Using an index of firm governance attributes, we find that, on average, foreign firms have worse governance than matching U.S. firms. Roughly 8% of foreign firms have better governance than comparable U.S. firms....
Persistent link: https://www.econbiz.de/10012713137
Religions have little to say about shareholders but have much to say about creditors. We find that the origin of a country's legal system is more important than its religion and language in explaining shareholder rights. However, a country's principal religion helps predict the cross-sectional...
Persistent link: https://www.econbiz.de/10012713656
The evidence presented here is inconsistent with variants of corporate finance theory which hold that the option properties of growth opportunities or asset substitution incentives are first-order determinants of equity values, but it is supportive of risk management and capital structure...
Persistent link: https://www.econbiz.de/10012740645
shareholders of firms listed in the U.S. cannot extract as many private benefits from control compared to controlling shareholders …
Persistent link: https://www.econbiz.de/10012741775