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How valuable is financial flexibility when revenue stops? : evidence from the COVID-19 crisis
Fahlenbrach, Rüdiger; Rageth, Kevin; Stulz, René M. - 2020 - Revised May 17, 2020
Firms with greater financial flexibility should be better able to fund a revenue shortfall resulting from the COVID-19 shock and benefit less from policy responses. We find that firms with high financial flexibility within an industry experience a stock price drop lower by 26% or 9.7 percentage...
Persistent link: https://www.econbiz.de/10012216704
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Why high leverage is optimal for banks
DeAngelo, Harry; Stulz, René M. - 2013 - Rev. May 29, 2013
premium, banks with risky assets use risk management to maximize their capacity to include such debt in the capital structure …
Persistent link: https://www.econbiz.de/10009782420
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Corporate deleveraging and financial flexibility
DeAngelo, Harry; Gonçalves, Andrei S.; Stulz, René M. - 2017
Most firms deleverage from their historical peak market-leverage (ML) ratios to near-zero ML, while also markedly increasing cash balances to high levels. Among 4,476 nonfinancial firms with five or more years of post-peak data, median ML is 0.543 at the peak and 0.026 at the later trough, with...
Persistent link: https://www.econbiz.de/10011969090
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Leverage and cash dynamics
DeAngelo, Harry; Gonçalves, Andrei S.; Stulz, René M. - 2021
typically vary widely over extended horizons, with dynamics remarkably similar to (and complementary with) those of capital … almost always volatile. Most firms increase leverage sharply as cash balances (internal funds) become scarce. Capital …
Persistent link: https://www.econbiz.de/10012584390
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The credit crisis around the globe: Why did some banks perform better?
Beltratti, Andrea; Stulz, René M. - In: Journal of Financial Economics 105 (2012) 1, pp. 1-17
-term capital market funding. The better-performing banks had less leverage and lower returns immediately before the crisis …
Persistent link: https://www.econbiz.de/10010576095
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The credit crisis around the globe : why did some banks perform better?
Beltratti, Andrea; Stulz, René M. - In: Journal of financial economics 105 (2012) 1, pp. 1-17
Persistent link: https://www.econbiz.de/10009622456
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Access to capital, investment, and the financial crisis
Kahle, Kathleen M.; Stulz, René M. - In: Journal of Financial Economics 110 (2013) 2, pp. 280-299
During the recent financial crisis, corporate borrowing and capital expenditures fall sharply. Most existing research … a reduction in capital expenditures. The economic significance of this causal link is tenuous, as we find that (1) bank …-dependent firms do not decrease capital expenditures more than matching firms in the first year of the crisis or in the two quarters …
Persistent link: https://www.econbiz.de/10010702375
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Are Firms in "Boring" Industries Worth Less?
Chen, Jia; Hou, Kewei; Stulz, René M. - National Bureau of Economic Research (NBER) - 2015
Using theories from the behavioral finance literature to predict that investors are attracted to industries with more salient outcomes and that therefore firms in such industries have higher valuations, we find that firms in industries that have high industry-level dispersion of profitability...
Persistent link: https://www.econbiz.de/10011133503
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Globalization, Governance, and the Returns to Cross-Border Acquisitions
Ellis, Jesse; Moeller, Sara B.; Schlingemann, Frederik P.; … - National Bureau of Economic Research (NBER) - 2011
Using a sample of control cross-border acquisitions from 61 countries from 1990 to 2007, we find that acquirers from countries with better governance gain more from such acquisitions and their gains are higher when targets are from countries with worse governance. Other acquirer country...
Persistent link: https://www.econbiz.de/10008784910
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Multinationals and the High Cash Holdings Puzzle
Pinkowitz, Lee; Stulz, René M.; Williamson, Rohan - National Bureau of Economic Research (NBER) - 2012
Defining as normal cash holdings the holdings a firm with the same characteristics would have had in the late 1990s, we find that the abnormal cash holdings of U.S. firms after the crisis represent on average 1.86% of assets. While U.S. firms held less cash than comparable foreign firms in the...
Persistent link: https://www.econbiz.de/10010550935