Narrow search
Showing 1 - 10 of 7,093
Cover Image
Stock liquidity and default risk around the world
Nadarajah, Sivathaasan - 2020
We document the negative effect of stock liquidity on default risk for a sample of 46 countries. We further find that … default risk declines following the introduction of the Directive on Markets in Financial Instruments (MiFID)—an exogenous … shock that increases liquidity. The effect of liquidity on default risk is more pronounced in countries with poorer investor …
Persistent link: https://www.econbiz.de/10012854783
Cover Image
Economic Policy Uncertainty, Institutional Environments, and Corporate Cash Holdings
El Ghoul, Sadok; Guedhami, Omrane; Mansi, Sattar; Wang, … - 2022
We empirically investigate the effect of economic policy uncertainty (EPU) on corporate cash holdings using a large sample of international firms. EPU intensifies concerns of investors on managerial self-dealing and political extraction. Consequently, the potential cost of cash holdings (i.e.,...
Persistent link: https://www.econbiz.de/10014236540
Cover Image
Debt Structure When Bankruptcy Law Offers Incentives to Restructure
Hasan, Iftekhar - 2019
We augment the LLSV creditor rights index with a new “restructuring index” that measures the incentives provided to creditors to grant concessions outside formal bankruptcy. We study the joint impact of the two indexes on a firm's leverage policy. We show that the two indexes have at most a...
Persistent link: https://www.econbiz.de/10012903408
Cover Image
Chapter 6. Law and Finance After a Decade of Research
La Porta, Rafael; Lopez-de-Silanes, Florencio; … - 2013
In the last dozen years, economists have produced a considerable body of research suggesting that the historical origin of a country’s laws is highly correlated with a broad range of its legal rules and regulations, as well as with economic outcomes. Much of this research has dealt with rules...
Persistent link: https://www.econbiz.de/10014025558
Cover Image
Derivatives Markets in Bankruptcy
Roe, Mark J. - 2013
By treating derivatives and financial repurchase agreements much more favorably than it treats other financial vehicles, American bankruptcy law subsidizes these arrangements relative to other financing channels. By subsidizing them, the rules weaken market discipline during ordinary financial...
Persistent link: https://www.econbiz.de/10013091160
Cover Image
Creditor Rights and Legal Transaction Costs
Aggarwal, Dhruv - 2023
) amount. This decrease in legal costs is smaller for firms with higher bankruptcy risk, more creditors, and higher agency …
Persistent link: https://www.econbiz.de/10014349158
Cover Image
Labor Unemployment Risk and Corporate Financing Decisions
Agrawal, Ashwini K. - 2018
unemployment risk. We exploit changes in state unemployment insurance laws as a source of variation in the costs borne by workers …-intensive and financially constrained firms. We estimate the ex ante, indirect costs of financial distress due to unemployment risk …
Persistent link: https://www.econbiz.de/10012940594
Cover Image
Post-Merger and Acquisition Performance and Risk Factors : An International Study
Thompson, Ephraim Kwashie - 2020
default and actual delisting of the acquirer. In this paper, we present a simple methodology for identifying risk factors and … then proceed to identify and investigate deal-related factors which may pose a risk to the survival of the acquirer after a … deal is closed. We find that the method of financing and the differences in industry are the main deal-level risk factors …
Persistent link: https://www.econbiz.de/10012832558
Cover Image
Why Do Foreign Firms Have Less Idiosyncratic Risk than U.S. Firms?
Bartram, Söhnke M. - 2019
idiosyncratic risk than a comparable U.S. firm. Country characteristics help explain variation in the level of idiosyncratic risk …, but less so than firm characteristics. Idiosyncratic risk falls as government stability and respect for the rule of law … improve. Idiosyncratic risk is positively related to stock market development but negatively related to bond market …
Persistent link: https://www.econbiz.de/10012906234
Cover Image
Why Do Foreign Firms Have Less Idiosyncratic Risk than U.S. Firms?
Bartram, Söhnke M. - 2019
idiosyncratic risk than a comparable U.S. firm. Country characteristics help explain variation in the level of idiosyncratic risk …, but less so than firm characteristics. Idiosyncratic risk falls as government stability and respect for the rule of law … improve. Idiosyncratic risk is positively related to stock market development but negatively related to bond market …
Persistent link: https://www.econbiz.de/10012906259