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percentile) of pension deficit, investment increase by 6.7 cents (9.4 cents) for every dollar increase in cash. As the pension … deficit increases, firms deviate more from the predicted level of investment. These findings suggest that the incremental …, at a fixed cash level, total investment increases as pension deficit increases …
Persistent link: https://www.econbiz.de/10013005096
A common method of valuing the equity in highly leveraged transactions is the flows-to-equity method. When applying this method various formulas can be used to calculate the time-varying cost of equity. In this paper we show that some commonly used formulas are inconsistent with the assumptions...
Persistent link: https://www.econbiz.de/10008797682
I examine whether the Securities and Exchange Commission (SEC) in the US is a learning organization (i.e., one that is capable of learning and adaptation to the dynamic nature of the securities markets – the subject of the SEC's regulatory oversight). Using the treatment of public corporate...
Persistent link: https://www.econbiz.de/10013068598
We examine changes in risk following US bank mergers in the period 1981-2014. Short-run increases in acquirer risk following mergers occur only in the first few mergers undertaken by the same acquirer, and only in systematic risk. The equity volatility of acquirers does not increase. Using a new...
Persistent link: https://www.econbiz.de/10012901410
Horizontal shareholding exists when significant shareholders have stock in horizontal competitors. (It is often imprecisely called "common shareholding," but that term can also apply when shareholders own stock in two noncompeting corporations. It differs from "cross-shareholding," which...
Persistent link: https://www.econbiz.de/10011685455
shareholding increases the distortion of executive compensation and the gap between corporate profits and investment. I also …
Persistent link: https://www.econbiz.de/10011810808
&D investment relative to assets-in-place that support existing products; (2) carry more cash; and (3) maintain less net debt. We …
Persistent link: https://www.econbiz.de/10012937531
The interaction between product market competition, R&D investment, and the financing choices of R&D-intensive firms on …&D investment relative to assets in place that support existing products; (2) carry more cash; and (3) maintain less net debt. Using …
Persistent link: https://www.econbiz.de/10013249274
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