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The Effects of LBO Events on Industry Rivals

Oxman, Jeffrey - 2011

The rivals of LBO targets experience an abnormal return on equity of 1.2% in the seven day window surrounding the LBO announcement. There are three hypotheses that may explain the wealth effects: the Pure Acquisition Hypothesis, the Competition Dynamics Hypothesis, and the Private Information...

Persistent link: https://www.econbiz.de/10013129981

The Impact of Privatization on State-Owned Enterprises Performance and Efficiency : Case Study of Sudan Airways

Mohamed, Issam A.W. - 2011

The current paper analyzes the impacts of privatization of Sudan air carrier, Sudan Airways. The hypothetical framework in this study is that alternative policies other than privatization are feasible. Sudan airways represents the sovereignty of the country carrying its flag, its objectives is...

Persistent link: https://www.econbiz.de/10013130174

Globalization, Governance, and the Returns to Cross-Border Acquisitions

Ellis, Jesse A. - 2011

Using a sample of control cross-border acquisitions from 61 countries from 1990 to 2007, we find that acquirers from … countries with better governance gain more from such acquisitions and their gains are higher when targets are from countries …-price reaction than the country of the acquirer. Second, for acquisitions of private firms or subsidiaries, acquirers gain more when …

Persistent link: https://www.econbiz.de/10013131906

Managerial Ownership of Debt and Bank Loan Contracting

Wang, Cong - 2011

Debt ownership by equity-holding managers aligns their incentives more closely with those of creditors, thereby reducing agency costs of debt. We test this hypothesis by examining how terms of bank loans are related to executive pension and deferred compensation, i.e., inside debt held by...

Persistent link: https://www.econbiz.de/10013132581

Ownership Structure and Financial Constraints : Evidence from a Structural Estimation

Lin, Chen - 2011

This article examines the impact of the divergence between corporate insiders' control rights and cash-flow rights on firms' external finance constraints via generalized method of moments estimation of an investment Euler equation. Using a large sample of U.S. firms during the 1994–2002...

Persistent link: https://www.econbiz.de/10013133658

Tournament Incentives, Firm Risk, and Corporate Policies

Kini, Omesh - 2011

This paper tests the proposition that higher tournament incentives will result in greater risk taking by senior managers in order to increase their chance of promotion to the rank of CEO. Measuring tournament incentives as the pay gap between the CEO and the next layer of senior managers, we...

Persistent link: https://www.econbiz.de/10013133806

Agency Costs in the Era of Economic Crisis – The Enhanced Connection between CEO Compensation and Corporate Cash Holdings

Ganor, Mira - 2012

This Article reports results of an empirical study that suggests that the current economic crisis has changed managerial behavior in the US in a way that may impede economic recovery. The study finds a strong, statistically significant and economically meaningful, positive correlation between...

Persistent link: https://www.econbiz.de/10013114205

Public Debt Market Access and Corporate Investment

Vasconcelos, Manuel - 2012

I show that access to the public debt market is associated with a significant reduction in the level of capital expenditures and takeovers, especially for firms with higher credit risk. Firms accessing the bond market also become less likely to violate debt covenants, reduce the level of payouts...

Persistent link: https://www.econbiz.de/10013114349

Competition and Corporate Fraud Waves

Wang, Tracy Yue - 2012

Our paper examines the effect of product market competition on firms' incentives to misreport financial information to investors. We examine three specific channels through which product market competition can affect the information environment in an industry and individual firms' incentives to...

Persistent link: https://www.econbiz.de/10013115111

Why Newly Listed Firms Become Acquisition Targets

De, Soumen - 2012

to investments made by newly listed firms which grow by acquisitions. Overall, firms acquired shortly after listing are …

Persistent link: https://www.econbiz.de/10013115380