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Corporate Blockholders and Financial Leverage

Bui, Thuy - 2018

This research investigates the relationship between corporate block ownership and firm financial leverage. Corporate blockholders, which are nonfinancial firms who hold more than five percent equity in a target industrial firm, can affect the target firm's policies through their business...

Persistent link: https://www.econbiz.de/10012911552

Asset Volatility and Capital Structure : Evidence from Corporate Mergers

Levine, Oliver - 2020

We exploit cross-sectional variation in the predictable changes in asset volatility following corporate acquisitions to identify the effect of business risk on capital structure. We find that post-merger changes in leverage and cash holdings are strongly predicted by expected asset volatility...

Persistent link: https://www.econbiz.de/10012856772

Financing Constraints and the Amplification of Aggregate Downturns

Carvalho, Daniel R. - 2014

This paper shows that during industry downturns, firms experience significantly greater valuation losses when their industry peers' long-term debt is maturing at the time of the shocks. Across a range of tests, the analysis addresses the endogenous determination of peer debt maturity structure....

Persistent link: https://www.econbiz.de/10013067077

Valuation Effects of Corporate Debt Offerings

Eckbo, B. Espen - 2009

This paper analyzes the effect of corporate debt offerings on stock prices. Straight debt offerings have non-positive price effects, while convertible debt offerings have significantly negative effects. Public utility mortgage (non-convertible) bond offerings have marginally negative effects,...

Persistent link: https://www.econbiz.de/10013155491

Market Value and Corporate Debt : The 2006-2010 International Evidence

Dell'Acqua, Alberto - 2013

We analyze the differences in the financial debt level of firms both in market-oriented systems (USA, UK) and bank-oriented systems (Germany, France and Italy) on a sample of 3,360 listed companies between the period 2006-2010. Results indicate that the debt level is significantly higher in...

Persistent link: https://www.econbiz.de/10013079108

Value Impact of Debt Issuances by Targets of Withdrawn Takeovers

Jandik, Tomas - 2014

Existing finance theory predicts that managers of takeover targets will increase leverage to enhance managerial control … which can, in turn, allow target managers to thwart a takeover attempt altogether. We find that targets significantly … poorly performing target managers made between takeover announcement and withdrawal result in significantly negative abnormal …

Persistent link: https://www.econbiz.de/10013062519

Stapled Financing, Value Certification, and Lending Efficiency

Aslan, Hadiye - 2015

We examine whether financing commitments from a target firm's financial advisor, in the form of stapled financing, provide certification of target value. Using a dataset of leveraged buyouts spanning 2002-2011, and addressing endogeneity issues, we find that stapled financing has significantly...

Persistent link: https://www.econbiz.de/10013014437

Market misreaction? : leverage and mergers and acquisitions

Krishnan, C. N. V.; Yakimenko, Vasiliy - In: Journal of risk and financial management : JRFM 15 (2022) 3, pp. 1-21

Using a large database of U.S. mergers and acquisitions (M&As) announced from 2010 through 2017, we examine the effects of capital ratio (leverage) on the announcement period stock price reaction as well as on longer-term stock returns and performance, for banks, making comparisons with...

Persistent link: https://www.econbiz.de/10013165300

The Effect of CEO Departure on Target Firms’ Post-Takeover Performance : Evidence from Not-Delisting Target Firms

Demirtas, Gul - 2016

Using a sample of target firms that do not delist from the stock market after a majority takeover, we investigate the … on equity. However, we do not find a significant effect of CEO turnover on target stock returns in the post-takeover …

Persistent link: https://www.econbiz.de/10013003124

It's My Stock and I'll Vote If I Want To : Conflicted Voting by Shareholders in (Hostile) M&A Deals

Gatti, Matteo - 2017

Persistent link: https://www.econbiz.de/10012969942