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Product price risk and liquidity management : evidence from the electricity industry
Chen, Lin; Schmid, Thomas; Weisbach, Michael S. - 2018
Product price risk is a potentially important factor for firms' liquidity management. A natural place to evaluate the impact of this risk on liquidity management is the electricity industry, since producing firms face substantial price volatility in wholesale markets. Empirically, higher...
Persistent link: https://www.econbiz.de/10011963380
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The corporate finance of multinational firms
Erel, Isil; Jang, Yeejin; Weisbach, Michael S. - 2020
An increasing fraction of firms worldwide operate in multiple countries. We study the costs and benefits of being multinational in firms' corporate financial decisions and survey the related academic evidence. We document that, among U.S. publicly traded firms, the prevalence of multinationals...
Persistent link: https://www.econbiz.de/10012168946
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Equity-Holding Institutional Lenders: Do They Receive Better Terms?
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-commercial bank institutional investors playing larger roles than they historically have played. In addition, non-commercial bank institutional lenders are often equity holders in their...
Persistent link: https://www.econbiz.de/10009652522
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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 … these constraints are eased following the acquisition. We evaluate the extent to which acquisitions lower financial … constraints on a sample of 5,187 European acquisitions occurring between 2001 and 2008. Each of these targets remains a subsidiary …
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 … acquisitions occurring between 2001 and 2008, for which we can observe the target's financial policies both before and after the … easing of financial frictions is a pervasive motive for acquisitions, it is consistent with the view that acquisitions ease …
Persistent link: https://www.econbiz.de/10009724578
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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
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The Financing of Large Buyouts : An Empirical Analysis
Axelson, Ulf - 2008
This paper provides an empirical analysis of the financial structure of large recent buyouts. We collect detailed information of the financings of 153 large buyouts (averaging over $1 billion in enterprise value). We document the manner in which these important transactions are financed. Buyout...
Persistent link: https://www.econbiz.de/10012726604
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Transparency and Corporate Governance
Hermalin, Benjamin E. - 2007
An objective of many proposed corporate governance reforms is increased transparency. This goal has been relatively uncontroversial, as most observers believe increased transparency to be unambiguously good. We argue that, from a corporate governance perspective, there are likely to be both...
Persistent link: https://www.econbiz.de/10012731119