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Tax-adjusted discount rates : a general formula under constant leverage ratios

Molnár, Peter; Nyborg, Kjell G. - 2011

Cooper and Nyborg (2008) derive a tax-adjusted discount rate formula under a constant proportion leverage policy … anticipated recovery in default, yet small. The cost of debtʺ in the tax adjusted discount rate formula is the debt’s yield rather … than its expected rate of return. tax-adjusted discount rates, tax shields, risky debt, cost of debt, personal taxes …

Persistent link: https://www.econbiz.de/10009009481

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

Cooper, Ian; Nyborg, Kjell G. - 2010

commonly used formulas are inconsistent with the assumptions about the debt plan. We show that the error resulting from using … which captures the effects of a time-varying fixed debt plan, expensive debt, and costs of financial distress, and discuss …

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

Stakeholder governance, competition and firm value

Allen, Franklin; Carletti, Elena; Marquez, Robert - 2014

In many countries, the legal system or social norms ensure that firms are stakeholder oriented. We analyze the advantages and disadvantages of stakeholder-oriented firms that are concerned with employees and suppliers compared to shareholder-oriented firms in a model of imperfect competition....

Persistent link: https://www.econbiz.de/10010249637

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

The choice of valuation techniques in practice : education versus profession

Mukhlynina, Lilia; Nyborg, Kjell G. - 2016

into a multiples exercise. Confusion reigns with respect to interest tax shields and the WACC. Higher educational levels do …

Persistent link: https://www.econbiz.de/10011518764

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

Market efficiency and limits to arbitrage : evidence from the Volkswagen short squeeze

Allen, Franklin; Haas, Marlene; Nowak, Eric; Tengulov, Angel - 2018

On October 26, 2008, Porsche announced a largely unexpected domination plan for Volkswagen. The resulting short squeeze in Volkswagen's stock briefly made it the most valuable listed company in the world. We argue that this was a manipulation designed to save Porsche from insolvency and the...

Persistent link: https://www.econbiz.de/10011875647

The contributions of Stewart Myers to the theory and practice of corporate finance

Allen, Franklin; Rajan, Raghuram Govind - In: Journal of applied corporate finance : JACF 20 (2008) 4, pp. 8-19

Persistent link: https://www.econbiz.de/10003811649

Financing and corporate growth under repeated moral hazard

Anderson, Ronald W.; Nyborg, Kjell G. - In: Journal of financial intermediation 20 (2011) 1, pp. 1-24

Persistent link: https://www.econbiz.de/10008989447

Financing and corporate growth under repeated moral hazard

Anderson, Ronald W. (contributor); … - 2001 - [Elektronische Ressource]

Persistent link: https://www.econbiz.de/10001700539