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The Information Asymmetry Effects of Expanded Disclosures about Derivative and Hedging Activities

Steffen, Thomas D. - 2020

and hedging footnote disclosures. Using a difference-in-differences design, I investigate whether these mandatory … complementary measures: (1) actual changes in firms' derivative and hedging disclosures, and (2) pre-SFAS 161 levels of firms …' derivative and hedging activities. Both measures provide consistent evidence that bid-ask spreads decreased more for firms whose …

Persistent link: https://www.econbiz.de/10012855683

Chapter 7. Payout Policy

Allen, Franklin; Michaely, Roni - 2003

This paper surveys the literature on payout policy. We start out by discussing several stylized facts that are important to the development of any comprehensive payout policy framework. We then describe the Miller and Modigliani (1961) payout irrelevance proposition, and consider the effect of...

Persistent link: https://www.econbiz.de/10014023869

Determinants of behaviour of working capital requirements of BSE listed companies : an empirical study using co-integration techniques and generalised method of moments

Sharma, Rakesh Kumar; Bakshi, Apurva; Chhabra, Sheena - In: Cogent economics & finance 8 (2020) 1, pp. 1-30

The paper investigates the determinants of working capital to forecast the future requirement of working capital of BSE-listed top 150 companies in India. The study is conducted by collecting the data of 150 top-performing BSE listed companies for the time period of 2009-2017. The ten firm-level...

Persistent link: https://www.econbiz.de/10012219679

Lord Eldon Redux : Information Asymmetry, Accountability and Fiduciary Loyalty

Licht, Amir N. - 2017

This article investigates the development of accountability and fiduciary loyalty as an institutional response to information asymmetries in agency relations, especially in firm-like settings. Lord Eldon articulated the crucial role of information asymmetries in opportunistic behaviour in early...

Persistent link: https://www.econbiz.de/10012967306

The Relationship Between Information Asymmetry and Dividend Policy

Vojtech, Cindy M. - 2012

This paper examines how the quality of firm information disclosure affects shareholders' use of dividends to mitigate agency problems. Managerial compensation is linked to firm value. However, because the manager and shareholders are asymmetrically informed, the manager can manipulate the firm's...

Persistent link: https://www.econbiz.de/10013106988

Contract Features and the Informativeness of Insider Trades

Cadman, Brian D.; Széles, Máté - 2021

Economic theory predicts that insiders reveal private information when they trade equity in their firm. However …

Persistent link: https://www.econbiz.de/10013251583

Skin in the Game and Moral Hazard

Chemla, Gilles - 2013

What determines securitization levels, and should they be regulated? To address these questions we develop a model where originators can exert unobservable effort to increase expected asset quality, subsequently having private information regarding quality when selling ABS to rational investors....

Persistent link: https://www.econbiz.de/10013092549

Initial Coin Offerings, Asymmetric Information, and Loyal CEOs

Momtaz, Paul P. - 2020

A defining feature of initial coin offerings (ICOs) is that entrepreneurs bear the full marginal investment cost but profit only partially from the marginal investment payoff. This design may exacerbate agency conflicts inherent in corporate finance. As a consequence, signals of entrepreneurial...

Persistent link: https://www.econbiz.de/10012852438

Pooling and Tranching under Belief Disagreement

Ortner, Juan - 2019

We study optimal security design when issuer and market participants disagree about the characteristics of the underlying asset. We show that pooling and tranching assets can be preferable to selling optimal securities backed by individual assets: pooling can be a response to belief disagreement...

Persistent link: https://www.econbiz.de/10012904241

Redacting Proprietary Information at the Initial Public Offering

Boone, Audra L. - 2015

Nearly 40% of IPO firms redact information from their SEC registration filings. These firms exhibit characteristics consistent with the need to shield proprietary information from potential rivals. They experience greater underpricing, but pre-IPO insiders reduce underpricing-related wealth...

Persistent link: https://www.econbiz.de/10013034802