Does corporate governance affect the timing of large investment projects? Hazard model estimates suggest strong shareholder governance may deter managers from pursuing large investments. Controlling for investment opportunities, firms with good governance experience longer spells between large...

Unlike equity offerings or public debt offerings, bank loan financing elicits a significantly positive announcement return, which has led financial economists to characterize bank loans as quot;specialquot; or somehow different from other types of external finance. Here, we find that firms...

Prior studies conclude that firms' equity underperforms following many individual sorts of external financing. These conclusions naturally raise significant questions about market efficiency and/or about the techniques used to measure long run ldquo;abnormal returns.rdquo; Rather than...

Segmented capital markets may allow firms to reduce their cost of capital by increasing their reliance on the relatively cheaper market. However, this potential benefit is attenuated by the firm's costs of accessing the markets. This paper models a firm with access to two segmented capital...

Unlike seasoned equity or public debt offerings, bank loan financing elicits a significantly positive announcement return, which has led financial economists to characterize bank loans as quot;special.quot; Here, we find that firms announcing bank loans suffer negative abnormal stock returns...

We present evidence that insured deposit financing shields banks from the full costs of market discipline. Banks experiencing Moody's downgrades exhibit abnormal equity returns that are increasing in the bank's reliance on insured deposits. We also find that banks increase their use of insured...

Previous research demonstrates that a firm's common stock price tends to fall when it issues new public securities. By contrast, commercial bank loans elicit significantly positive borrower returns. This paper investigates whether the lender's identity influences the market's reaction to a loan...

Previous research has established that a firm's common stock price tends to fall when it issues new public securities. By contrast, commercial bank loans elicit significantly positive returns to the average borrower's stock. The reasons for this positive effect are not well established. This...