We develop a model of real investment and cash holdings in which firms face uncertaintyregarding their ability to raise funds in the capital markets and have to search for investorswhen raising outside capital. We provide an explicit characterization of the optimal investment,cash management,...

This study investigates the relationship between institutional ownership and dividend payout behavior of the firm in Germany. Using a propensity scoring method estimator to control for endogeneity problems, we find evidence that neither institutional ownership nor bank control is statistically...

Die Finanztheorie betrachtet in den letzten Jahren verstärkt die Bedeutung institutionellerRahmenbedingungen bei der Gestaltung von Finanzierungsverträgen in verschiedenenLändern. In diesem Kontext vergleicht das vorliegende Papier unterschiedliche, für denangelsächsischen und deutschen...

Our study provides evidence on the share price reactions to the announcement of equity issues inGermany, where capital market is characterized by institutional features distinct from the U.S. market.German seasoned equity issues yield a positive market reaction which contrasts to the significant...

We propose an explanation for the "disappearing dividend" phenomenon: the decline in the information content of dividend announcements. This reduces the propensity of firms to pay or increase dividends, since dividends are costly.(...)

An underinvestment problem arises if an additional investment project with positive net presentvalue increases only the market value of debt, but not of equity. As a way out the shift ofthe additional investment project and possibly also other projects to a subsidiary is considered.From the...

This contribution discusses a number of ideas for using a shareholder value approach to the problems of risk-adjusted performance measurement and the issue of capital allocation. We demonstrate that, if shareholder value is to be consistently maximised, then not only the total amount of equity...