Showing 51 - 60 of 564
We study rights offerings using a sample of 8,238 rights offers announced during 1995-2008 in 69 countries. Although shareholders prefer having the option to trade rights, issuers deliberately restrict tradability in 38% of the offerings. We argue that firms restrict rights trading to avoid the...
Persistent link: https://www.econbiz.de/10010858773
We develop an equilibrium model of debt maturity choice of rms, in the presence of xed issuance costs in primary debt markets, and an over-the-counter secondary debt market with search frictions. Liquidity in this market is related to the ratio of buyers to sellers, which is determined in...
Persistent link: https://www.econbiz.de/10010858774
We propose a new estimator of multivariate ex-post volatility that is robust to microstructure noise and asynchronous data timing. The method is based on Fourier domain techniques, which have been widely used in discrete time series analysis. The advantage of this method is that it does not...
Persistent link: https://www.econbiz.de/10010858775
We explore a new mechanism through which investors take correlated shortcuts. Specifically, we exploit a regulatory provision governing firm classification into industries: A firm’s industry classification is determined by the segment that has the majority of sales. We find strong evidence...
Persistent link: https://www.econbiz.de/10010858776
This paper estimates the effects of Say-on-Pay (SoP); a policy that increases shareholder "voice" by providing shareholders with a regular vote on executive pay. We apply a regression discontinuity design to the votes on shareholder-sponsored SoP proposals. Adopting SoP leads to large increases...
Persistent link: https://www.econbiz.de/10010858777
This paper develops a theory of the opening and dynamic development of a futures market with competing exchanges. The optimal contract design involves a trade-o¤ between the hedging potential of a contract and it?s degree of substitution with competing contracts. As design costs go down slowly,...
Persistent link: https://www.econbiz.de/10010858778
This paper studies asset markets in which ambiguity averse investors face Knightian uncertainty about expected payoffs. The same investors, however, might wish to resolve their uncertainty, although not risk, by just purchasing information. In these markets, uninformed and, hence, ambiguity...
Persistent link: https://www.econbiz.de/10004997416
We study the relationship between liquid asset holding and the pattern of share ownership and control structures within the firm. We explore these issues using a data set of Belgian firms that is particularly well suited to studying the institutions of control oriented finance. The data include...
Persistent link: https://www.econbiz.de/10004997417
We study innovative industries subject to two risks. First, it is uncertain whether the innovation is strong or fragile. Second, it is difficult to monitor managers, which creates moral hazard and agency rents. As time goes by and profits are observed, beliefs about the industry are updated. As...
Persistent link: https://www.econbiz.de/10004997418
This paper analyses the incentives of the equityholders of a leveraged company to shut it down in a continuous time, stochastic environment. Keeping the firm as an ongoing concern has an option value but equity and debt holders value it differently. Equityholders decisions exhibit excessive...
Persistent link: https://www.econbiz.de/10005007827