Similar Search Results

Corporate Liquidity Management: A Conceptual Framework and Survey

Almeida, Heitor; Campello, Murillo; Cunha, Igor; … - In: Annual Review of Financial Economics 6 (2014) 1, pp. 135-162

Ensuring that a firm has sufficient liquidity to finance valuable projects that occur in the future is at the heart of … substantial literature on the ways in which firms manage liquidity has developed only recently. We argue that many of the key … issues in liquidity management can be understood through the lens of a framework in which firms face financial constraints …

Persistent link: https://www.econbiz.de/10011094548

The role of financial conditions in portfolio choices : the case of insurers

Ge, Shan; Weisbach, Michael S. - 2019

Many institutional investors depend on the returns they generate to fund their operations and liabilities. How do these investors' financial conditions affect the management of their portfolios? We address this issue using the insurance industry because insurers are large investors for which...

Persistent link: https://www.econbiz.de/10012104637

Specialized investments and firms' boundaries : evidence from textual analysis of patent

Bena, Jan; Erel, Isil; Wang, Daisy; Weisbach, Michael S. - 2021

Inducing firms to make specialized investments through bilateral contracts can be challenging because of potential holdup problems. Such contracting difficulties have long been argued to be an important reason for acquisitions. To evaluate the extent to which this motivation leads to mergers, we...

Persistent link: https://www.econbiz.de/10012816391

Do Acquisitions Relieve Target Firms' Financial Constraints?

Erel, Isil; Jang, Yeejin; Weisbach, Michael S. - National Bureau of Economic Research (NBER) - 2013

Managers often claim that an important source of value in acquisitions is the acquiring firm's ability to finance investments for the target firm. This claim implies that targets are financially constrained prior to being acquired and that these constraints are eased following the acquisition....

Persistent link: https://www.econbiz.de/10011188516

Corporate Liquidity Management: A Conceptual Framework and Survey

Campello, Murillo; Almeida, Heitor; Cunha, Igor; … - National Bureau of Economic Research (NBER) - 2013

Persistent link: https://www.econbiz.de/10011188522

CEO Investment Cycles

Pan, Yihui; Wang, Tracy Yue; Weisbach, Michael S. - National Bureau of Economic Research (NBER) - 2013

This paper documents the existence of a CEO Investment Cycle, in which firms disinvest early in a CEO's tenure and increase investment subsequently, leading to "cyclical" firm growth in assets as well as in employment over CEO tenure. The CEO investment cycle occurs for both firings and...

Persistent link: https://www.econbiz.de/10010950835

Learning about CEO Ability and Stock Return Volatility

Pan, Yihui; Wang, Tracy Yue; Weisbach, Michael S. - National Bureau of Economic Research (NBER) - 2013

When there is uncertainty about a CEO's quality, news about the firm causes rational investors to update their expectation of the firm's profitability for two reasons: Updates occur because of the direct effect of the news, and also because the news can cause an updated assessment of the CEO's...

Persistent link: https://www.econbiz.de/10010951298

Borrow cheap, buy high?: the determinants of leverage and pricing in buyouts

Axelson, Ulf; Jenkinson, Tim; Strömberg, Per; … - London School of Economics (LSE) - 2012

Private equity funds pay particular attention to capital structure when executing leveraged buyouts, creating an interesting setting for examining capital structure theories. Using a large, detailed, international sample of buyouts from 1980-2008, we find that buyout leverage is unrelated to the...

Persistent link: https://www.econbiz.de/10011071252

Does Uncertainty about Management Affect Firms’ Costs of Borrowing?

Pan, Yihui; Wang, Tracy Yue; Weisbach, Michael S. - National Bureau of Economic Research (NBER) - 2014

Uncertainty about management appears to affect firms’ cost of borrowing and financial policies. In a sample of S&P 1500 firms between 1987 and 2010, CDS spreads, loan spreads and bond yield spreads all decline over the first three years of CEO tenure, holding other macroeconomic, firm, and...

Persistent link: https://www.econbiz.de/10011071744

Syndicated Loan Spreads and the Composition of the Syndicate

Lim, Jongha; Minton, Bernadette A.; Weisbach, Michael S. - Charles A. Dice Center for Research in Financial … - 2012

The past decade has seen significant changes in the structure of the corporate lending market, with non-bank institutional investors playing larger roles than they historically have played. These non-bank institutional lenders typically have higher required rates of return than banks, but invest...

Persistent link: https://www.econbiz.de/10010575113