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Persistent link: https://www.econbiz.de/10014527218
This study investigates how controlling shareholders fraudulently extracted firm value via cash tunnelling from Chinese companies from 1998 to 2011. The evidence suggests that expropriating owners choose a balance sheet account that is not directly related to the firm's operating business in...
Persistent link: https://www.econbiz.de/10012987496
We analyze a publicly-traded firm's decision to stay public or go private when managerial autonomy from shareholder intervention affects the supply of productive inputs by management. We show that both the advantage and the disadvantage of public ownership relative to private ownership lie in...
Persistent link: https://www.econbiz.de/10011348720
Despite the fact that the 2003 corporate law reform in Italy undeniably increased autonomy on the part of directors (at least in share companies) to the detriment of shareholders, shareholders retain a significant role. This role arises out of recognition of their competence to draw-up the...
Persistent link: https://www.econbiz.de/10013135448
This Article examines whether recent shifts among private and public markets are part of a more general phenomenon of “shapeshifting” among corporate entities. A shapeshift is a transformation of corporate form involving the creation or use of a new legal entity and one or more changes in...
Persistent link: https://www.econbiz.de/10013148211
Assuming benevolent managers, the debt-overhang problem suggests that distressed firms generally refrain from issuing equity. In contrast, agency theory predicts that distressed firm managers have strong self-interests to finance even deteriorating projects through equity issuance. This paper...
Persistent link: https://www.econbiz.de/10013038070
I provide further evidence on the determinants of corporate capital structure by estimating a dynamic trade-off model of the firm that includes investment, leverage, and payout decisions. The structural model generates a leverage ratio that oscillates around a long-run, time-invariant level and...
Persistent link: https://www.econbiz.de/10013038606
In a three-period model with active and passive external corporate governance, this paper studies the endogenous decision of debt and equity financiers on the governance mode and intensity over their debtors, as well as how this may affect the funded firms' financing choice. We show that debt...
Persistent link: https://www.econbiz.de/10012909239
Using global cross-firm ownership data, we find that both stock returns and cash-flow news of ownership-linked firms predict focal firm’s returns for all four types of ownership structures: subsidiary−parent, parent−subsidiary, subsidiary−subsidiary, and parent−parent. These results...
Persistent link: https://www.econbiz.de/10013226375
The aim of this paper is to examine the effect of corporate governance, corporate financing decision, and ownership structure on firm performance. The study uses panel based regression approach; the analysis is based on a sample of 80 listed Kuwait Stock Exchange Market firms, over a period of 9...
Persistent link: https://www.econbiz.de/10013135649