We investigate the principal-principal (PP) conflicts between large blockholders in the context of cross-border acquisitions (CBAs). We focus on the conflicts between family blockholders and two groups of financial institutional investors – banks and mutual funds. We hypothesize that different...

We investigate the impact of firm expansion decisions on CEO wealth and derive the ex ante wealth-driven incentives. We find that CEO incentives are determined by a combined influence of multiple factors, including board compensation policy, stock market mispricing, as well as CEO's own...

This paper empirically examines how diversification influences the relation between corporate governance and capital structure. Consistent with the creditor alignment hypothesis, we find a positive relation between managerial entrenchment and leverage in diversified firms. In contrast, we find a...

A large number of newly listed firms have significant involvement in international business activity. In this paper, we examine the effect of international business activity on the pricing of initial public offerings (IPOs), post-IPO performance, and survival. In a large sample of U.S. IPOs over...

We examine the effect of export activity on the pricing of initial public offerings (IPOs) and their post-IPO performance and survival. On the one hand, foreign market operations diversify a firm's revenue base and the risk of domestic cash flow shocks and may also provide an entree into foreign...

We examine stock and bond price reactions to first time grants of equity compensation to CEOs. For firms granting options and/or restricted stock to their CEOs for the first time during the period 1992 to 2004, we find large positive stock price reactions and large negative bond price reactions....

This paper investigates the influence of managerial incentives on the capital structure decision using a sample of all-equity firms. Managerial risk-taking incentives may encourage financial risk taking hence greater leverage. On the other hand, increasing a manager's incentive to take risk...

This paper investigates the governance implications of a firm's capital structure and managerial incentive compensation and the substitutability of these two mechanisms in controlling the free cash flow agency problem. The study is designed to explore the different ways that debt and incentives...