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Resolving Information Asymmetry through Contractual Risk Sharing : The Case of Private Firm Acquisitions
Jansen, Mark - 2020
When private firms are acquired, buyers commonly rely on seller financing and earnouts. Using a novel database of private acquisitions, I find that seller financing and earnouts become more common as information asymmetry increases between the acquirer and the target. Financial statement audits...
Persistent link: https://www.econbiz.de/10012856045
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Tail Risk Connectedness Between US Industries
Nguyen, Linh - 2018
We use the Least Absolute Shrinkage and Selection Operator (LASSO) quantile regression technique to construct and analyse the complete tail risk connectedness network of the whole US industry system. We also investigate the empirical relationship between input-output linkages and the tail risk...
Persistent link: https://www.econbiz.de/10012918493
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Termination Risk and Managerial Risk Taking
Chakraborty, Atreya; Sheikh, Shahbaz Ali; Subramanian, … - 2005
We study the empirical evidence on the relationship between the conditional probability of being fired in the event of poor performance (termination risk) and managerial risk-taking. Previous research has focused on compensation risk only and shown that it has a negative effect on risk-taking....
Persistent link: https://www.econbiz.de/10014067845
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Resolving Information Asymmetry Through Contractual Risk Sharing : The Case of Private Firm Acquisitions
Jansen, Mark - 2021
When private firms are acquired, buyers commonly rely on seller financing and earnouts. Using a novel database of private acquisitions, I find that seller financing and earnouts become more common as information asymmetry increases between the acquirer and the target. Financial statement audits...
Persistent link: https://www.econbiz.de/10013241013
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Tournament Incentives, Firm Risk, and Corporate Policies
Kini, Omesh - 2011
This paper tests the proposition that higher tournament incentives will result in greater risk taking by senior managers in order to increase their chance of promotion to the rank of CEO. Measuring tournament incentives as the pay gap between the CEO and the next layer of senior managers, we...
Persistent link: https://www.econbiz.de/10013133806
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Risk Allocation in Acquisitions : The Uses and Value of MAE-Exclusions
Macias, Antonio J. - 2011
Acquirers and targets define and allocate interim risk through Material-Adverse-Event (MAE) exclusions in merger agreements. I examine why MAE-exclusions exist based on the risk they address and assess whether such risk allocation affects the gains in the acquisition. Targets and acquirers seem...
Persistent link: https://www.econbiz.de/10013134784
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Market discipline and liquidity risk : evidence from the interbank funds market
Sarmiento, Miguel - 2016
demand for liquidity in the interbank market as wells as banks' access to this market. Results indicate that riskier banks … pay higher prices and borrow less liquidity, concurrent with the existence of market discipline. More capitalized and … higher prices and hoard liquidity when liquidity positions across them are more imbalanced and during a monetary policy …
Persistent link: https://www.econbiz.de/10011554714
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The Reinsurance Network Among U.S. Property-Casualty Insurers : Microstructure, Insolvency Risk, and Contagion
Chen, Hua - 2020
Reinsurance is the primary source of interconnectedness in the insurance industry. As such, reinsurance connectivity provides a transmission mechanism for financial shocks and potentially exposes insurers to contagion and systemic risk. In this paper, connectivity within the U.S....
Persistent link: https://www.econbiz.de/10012856350
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Collateral-Enhanced Default Risk
Kenyon, Chris - 2013
Changes in collateralization have been implicated in significant default (or near-default) events during the financial crisis, most notably with AIG. We have developed a framework for quantifying this effect based on moving between Merton-type and Black-Cox-type structural default models. Our...
Persistent link: https://www.econbiz.de/10013087656
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Economic Policy Uncertainty and Stock Liquidity : The Role of Board Networks in an Emerging Market
Mbanyele, William - 2021
This study examines the role of board networks in promoting stock liquidity in periods of heightened economic policy … competitive industries. Secondly, we provide evidence that board networks promote stock liquidity more via the information channel … effects of economic policy uncertainty on stock liquidity …
Persistent link: https://www.econbiz.de/10013219803