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We study how financing constraints affect the cash holdings of small and mediumsized enterprises. There has been little empirical work on this topic, even though these firms often face financial constraints. We contribute by using detailed data on credit ratings in Sweden as a measure of...
Persistent link: https://www.econbiz.de/10014577960
We examine the knock-on effect of credit rating changes in Korean Chaebol. We show that credit rating changes of chaebol-affiliated firm share the effect of credit rating change with related affiliates because: (1) chaebol affiliates share their internal capital markets and (2) chaebol...
Persistent link: https://www.econbiz.de/10013101610
Persistent link: https://www.econbiz.de/10011991482
This study explores developments in corporate creditworthiness before and after ownership events. We utilize the … Blockholders database recently produced by Dlugosz, Fahlenbrach, Gompers, and Metrick (2006) and discover that ownership …
Persistent link: https://www.econbiz.de/10013133439
regulatory concerns about the ownership and governance of rating agencies, especially those that are publicly listed …
Persistent link: https://www.econbiz.de/10012990961
negatively correlated with board size, profitability, growth opportunity, and non-debt tax shield. Credit rating is positively … is positive but weakly significant, but seems not consistent with expectations. Finally, profitability cause could be … regarded as an interesting finding. Indeed, there is an inverse correlation between profitability and total debt (Notice that …
Persistent link: https://www.econbiz.de/10011778650
model but it is developed on an integrated concept of the corporate performance. The integration of the Lintner's model with … estimations might bias the perception of the corporate performance and generate misallocation in credit fundings. We suggest that … impact of SMEs is the highest and where such firms present best performances. Results from risk-adjusted profitability …
Persistent link: https://www.econbiz.de/10012936712
This study investigates the differential impact that various dimensions of corporate social performance have on the …, based on an extensive longitudinal dataset, suggests that overall, good performance is rewarded and corporate social …
Persistent link: https://www.econbiz.de/10013119586
debt overhang leads to a significant improvement in operating performance (return on assets, net profit margin). In … provides lending banks with the counterfactual of what would have been the ski hotel's operating performance in the absence of …
Persistent link: https://www.econbiz.de/10013068990
We find that firms reduce net debt issuance (NDI, hereafter) when industry peers with the same credit rating were downgraded in the previous year, as opposed to an average NDI increase among all firms. This finding is consistent with the considerations of competition and contagion associated...
Persistent link: https://www.econbiz.de/10012860197