This study examines how takeover decisions are influenced by the quality of information in target firms' earnings. We show that bidders prefer negotiated takeovers in deals involving targets with poor earnings quality. Moreover, earnings quality and takeover premiums are negatively related in...

This study documents that managerial stock ownership plays an important role in determining corporate debt maturity. Controlling for previously identified determinants of debt maturity and modeling leverage and debt maturity as jointly endogenous, we document a significant and robust inverse...

Building on Myers and Majluf's (1984) model, we propose that the magnitude of the market response to seasoned equity offering (SEO) announcements depends on the degree of alignment between the goals of managers and existing shareholders. We document a negative relation between the stock market...

We examine the determinants and consequences of earnings management by firms in the context of their relationships with suppliers and customers. We find that industry-level proxies for relationship-specific investments by suppliers/customers are positively associated with the magnitude of...

Building on Myers and Majluf's (1984) model, we propose that the magnitude of the market response to seasoned equity offering (SEO) announcements depends on the degree of alignment between the goals of managers and existing shareholders. We document a negative relation between the stock market...

By examining how executive compensation structure determines corporate acquisition decisions, we document a strong positive relation between acquiring managers' equity-based compensation (EBC) and stock price performance around and following acquisition announcements. This relation is highly...

We examine the long-run implications of debt structure adjustments using a sample of U.S. bond IPOs from 1971 to 1994. Bond IPOs result in simultaneous and pronounced changes in both debt maturity and debt ownership structures. We document that firms engaging in debt IPOs substantially...

This study complements existing research on the information content of dividends by focusing on the use of dividend expectations. We derive a measure of unexpected dividend changes, called dividend surprises, based on Value Line forecasts. Our results highlight a potentially serious sample...

This study resolves the puzzling evidence on convertible bonds by documenting that conversion-forcing calls are indeed bad news. Supporting the long-term implications of Harris and Raviv (1985), we document that the common stocks of calling firms substantially underperform their benchmarks by a...

We examine the long-run implications of debt structure adjustments using a sample of U.S. bond IPOs from 1971 to 1994. Bond IPOs result in simultaneous and pronounced changes in both debt maturity and debt ownership structures. We document that firms engaging in debt IPOs substantially...