We examine the equity ownership structure and board composition of a sample of 583 firms over the ten-year period 1983-1992. Our evidence suggests that a substantial fraction of firms exhibit large changes in ownership and board structure in any given year. These changes are correlated with one...

We provide robust evidence that cash holdings are more valuable for financially constrained firms than for unconstrained firms and investigate why this is so. Our results indicate that greater cash holdings are associated with higher levels of investment for both constrained and unconstrained...

In the U.S., Canada, U.K., Germany, France, and Japan, the propensity to pay dividends is higher among larger, more profitable firms, and those for which retained earnings comprise a large fraction of total equity. Although there are hints of reductions in the propensity to pay dividends in most...

We examine time-series evidence of dividend polices in several developed financial markets over the period 1989-2002. Consistent with trends in the U.S., our evidence indicates a declining propensity to pay dividends in Canada, the U.K., Germany, France, and Japan. This decline cannot be...

We analyze how E/P multiples are affected when firms experience an unusual change in earnings. Those firms with earnings changes that are below the industry median have E/P ratios that are also below the median. Conversely, those firms with earnings changes above the median have E/P ratios that...

This paper examines the relation between the market reaction to primary seasoned equity offerings and alternative measures of the profitability of the issuing firm's growth opportunities. While the sample offerings display a positive relation between announcement period prediction errors and...

This paper compares the leveraged recapitalization of Kroger Co. with the leveraged buyout of Safeway Stores. While both transactions dramatically increased leverage, Safteway's also altered managerial ownership, board composition, and executive compensation, while Koger's did not. My analysis...

Coincident with a rise in intangible investment, operating losses have become substantially more prevalent, persistent, and greater in magnitude since 1970. Loss firms now make up over 30% of the Compustat universe and such losses continue for a median of four years. Firms with negative...

The use of equity incentives is significantly greater in countries with stronger insider trading restrictions, and these higher incentives are associated with higher total pay. These findings are robust to alternative definitions of insider trading restrictions and enforcement, and to panel...

We analyze capital structure decisions of U.S. firms during 1905-1924, a period characterized by two shocks that provide a unique experiment for studying the primary determinants of financing choices: (i) the introduction of corporate and individual taxes, and (ii) the onset of World War I,...