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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
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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
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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
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Financing-motivated acquisitions
Erel, Isil; Jang, Yeejin; Weisbach, Michael S. - 2012
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/10009507042
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Does uncertainty about management affect firms' costs of borrowing?
Pan, Yihui; Wang, Tracy Yue; Weisbach, Michael S. - 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/10010532197
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Learning about CEO ability and stock return volatility
Pan, Yihui; Wang, Tracy Yue; Weisbach, Michael S. - 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 value for two reasons: Updates occur because of the direct effect of the news, and also because news leads investors to update their assessment of the CEO's...
Persistent link: https://www.econbiz.de/10009724571
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Do acquisitions relieve target firms' financial constraints?
Erel, Isil; Jang, Yeejin; Weisbach, Michael S. - 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/10009724578
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Syndicated loan spreads and the composition of the syndicate
Lim, Jongha; Minton, Bernadette A.; Weisbach, Michael S. - 2012
During the past decade non-bank institutional investors are increasingly taking larger roles in the corporate lending than they historically have played. These non-bank institutional lenders typically have higher required rates of return than banks, but invest in the same loan facilities. In a...
Persistent link: https://www.econbiz.de/10009625909
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Corporate liquidity management : a conceptual framework and survey
Almeida, Heitor; Campello, Murillo; Cunha, Igor; … - 2013
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/10010227725
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CEO investment cycles
Pan, Yihui; Wang, Tracy Yue; Weisbach, Michael S. - 2013
This paper documents the existence of a CEO Investment Cycle, in which disinvestment decreases over CEO tenure while investment increases, leading to “cyclical” firm growth in assets as well as in employment. The estimated variation in investment rate over the CEO cycle is of the same order...
Persistent link: https://www.econbiz.de/10009782415