A merger requires at least one of two separate yet equally important sets of negotiations. The first set involves merging parties to discuss issues related to the terms of the merger, including target firm's valuation. The second set resolves disputes between the merging parties and the law...

As a firm deviates from its target leverage, marginal bankruptcy costs change at a faster speed than marginal tax shield. This renders the speed of adjustment (SOA) of capital structure an increasing function of the starting deviation from the target. Adopting a bootstrapping-based estimation,...

This paper examines the level and the main determinants of liquidity created by credit unions. The contribution of credit unions to the aggregate liquidity created by the financial system has increased over time from $206 billion in 2000 to $318 billion in 2008. We document a negative...

We investigate why firms choose to issue new shares to fund their direct stock purchase plans (DSPPs). The evidence supports our hypothesis that such firms are high growth firms facing shortages of internal capital along with a high marginal cost of external capital. We also hypothesize that...