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This paper studies the effect of the controlling shareholder’s financial background on the corporate financialization …. We find that controlling shareholder’s financial background has a significant positive impact on corporate … real investment environment. Firms with financial controlling shareholders will increase long-term value reserving …
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whether the cost-benefit tradeoff to shareholders, captured by the valuation impact of an additional dollar of debt on owners … shareholders view increasing debt to have a negative impact on their wealth, that is, shareholders perceive firms to be over … decisions. Managers respond to the changing cost to shareholders by reducing (increasing) leverage when the cost of debt …
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I use a negative exogenous shock to the ability to file shareholder initiated class action lawsuits, the passage of the 1995 Private Securities Litigation Reform Act, to test the effect of the probability of being sued on a firm's capital structure. After the Act's passage, firms with the...
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, we find that shareholders do not react negatively to the inclusion of a Dead Hand Proxy Put in a firm's loan agreements …
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The degree of control over operations affects the quality of information provided to investors. Uncertainty about operating performance increases following the first equity method (EM) reporting of off-balance-sheet investments, but only when the investments are joint ventures (JVs). Partners in...
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