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Post-Merger Integration Duration and Leverage Dynamics of Mergers : Theory and Evidence
Huang, Jing; Pierce, Joshua R.; Tsyplakov, Sergey - 2015
We introduce the concept of the post-merger integration duration (PMID) which is the time delay that it takes a merged … the time of a merger, and gradually levers up as the integration period nears completion. We hand collect a unique data …
Persistent link: https://www.econbiz.de/10013038169
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A Test of IPO Theories Using Reverse Mergers
Asquith, Paul - 2011
Reverse mergers are an alternative method to IPOs for going public and announcement day price reaction to reverse mergers is comparable to the initial day price reaction to IPOs. Most of the academic theories developed thus far to explain the market's reaction to IPOs, however, are not...
Persistent link: https://www.econbiz.de/10013131627
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Testing Trade-Off and Pecking Order Models Under Different Institutional Environments
Farhat, Joseph B. - 2014
In this paper, we examine the differences in information asymmetry and financing patterns and a generalized version of the trade-off theory across countries with different institutional environments. We find that firms in Civil law countries have higher information asymmetry, rely more on...
Persistent link: https://www.econbiz.de/10013071172
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Ownership Structure, Control Contestability, and Corporate Debt Maturity
Ben‐Nasr, Hamdi - 2015
The corporate governance literature has shown that self-interested controlling owners tend to divert corporate resources for private benefits at the expense of other shareholders. Such behavior leads the controlling owners to prefer long maturity debt to short maturity debt, to avoid frequent...
Persistent link: https://www.econbiz.de/10013014423
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Modeling Managers As EPS Maximizers
Ben-David, Itzhak; Chinco, Alexander M. - National Bureau of Economic Research - 2023
Textbook theory assumes that firm managers maximize the net present value of future cash flows. But when you ask them, real-world firm managers consistently say that they are maximizing something else entirely: earnings per share (EPS). Perhaps this is a mistake. No matter. We take firm managers...
Persistent link: https://www.econbiz.de/10014250143
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CEO's Inside Debt and Dynamics of Capital Structure
Brisker, Eric R. - 2016
Debt-type compensation (i.e., inside debt) exacerbates the divergence in risk preference between the CEO and shareholders that in turn affects the firm's capital structure decisions. An excessively risk-averse CEO uses debt that falls short of the shareholders' desired level, and is eager to...
Persistent link: https://www.econbiz.de/10013000976
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Modeling Managers As EPS Maximizers
Ben-David, Itzhak; Chinco, Alex - 2023
Textbook theory assumes that firm managers maximize the net present value of future cash flows. But when you ask them, the people running large public corporations say that they are maximizing something else entirely: earnings per share (EPS). Perhaps this is a mistake. No matter. We take...
Persistent link: https://www.econbiz.de/10014351328
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Golden Parachutes, Takeover Incentive, and Risk-Taking
Chen, Dong - 2014
-taking. These results are consistent with the “takeover incentive hypothesis,” an original proposition stating that GPs influence … risk-taking through the incentive of a CEO with a GP to accept a takeover, as well as delta's role in affecting the weight … of the CEO's incentive to maximize the expected takeover-associated equity portfolio wealth. The findings do not support …
Persistent link: https://www.econbiz.de/10013065544
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Mergers and Managers : Manager-Specific Wage Premiums and Rent Extraction in M&As
He, Alex Xi - 2020
This paper shows that some managers systematically pay higher wages to rank-and-file workers and these managers are targets of M&As. We use a manager-firm-worker matched dataset covering the entire population of Denmark from 1995 to 2011, and develop a novel framework to identify manager fixed...
Persistent link: https://www.econbiz.de/10012846952
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Post-Siliconix Freeze-Outs : Theory, Evidence & Policy
Subramanian, Guhan - 2005
minority shareholders. While a freeze-out executed as a statutory merger is subject to stringent entire fairness review, the … shareholders, on average, when it uses a tender offer compared to a merger. This difference between tender offers and mergers seems …-thirds of post-Siliconix freeze-outs still proceed through the traditional merger route. I present some evidence that …
Persistent link: https://www.econbiz.de/10014072285