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Prior literature argues that stock-for-stock mergers are often financed by overvalued stock. How do a target's institutional owners trade when faced with a stock-financed bid, particularly one from an acquirer more likely to be overvalued? If institutional owners perceive the acquirer's stock as...
Persistent link: https://www.econbiz.de/10012718572
Successful private equity managers have funds that are often oversubscribed and provide persistent abnormal returns. Why don't successful managers increase fund size or fees? We argue that managers want to attract high quality entrepreneurs, while entrepreneurs want to match with high ability...
Persistent link: https://www.econbiz.de/10012708397
We investigate the functioning of internal capital markets in Indian Business Groups. We document that intra-group loans are an important means of transferring cash across group firms and that such transfers are typically used to support the financially weaker firms. Groups significantly...
Persistent link: https://www.econbiz.de/10012756972
Prior literature argues that stock-for-stock mergers are often financed by overvalued stock. How do a target's institutional owners trade when faced with a stock-financed bid, particularly one from an acquirer more likely to be overvalued? If institutional owners perceive the acquirer's stock as...
Persistent link: https://www.econbiz.de/10012724973
Prior literature argues that stock-for-stock mergers are often financed by overvalued stock. How do a target's institutional owners trade when faced with a stock-financed bid, particularly one from an acquirer more likely to be overvalued? If institutional owners perceive the acquirer's stock as...
Persistent link: https://www.econbiz.de/10012725221
In the 1990s, many load funds introduced additional share classes that give investors the choice of paying back-end loads and/or annual fees instead of front-end loads. The transition to a multiple-class structure provides a well-controlled setting for research with regard to investor clienteles...
Persistent link: https://www.econbiz.de/10012721824
We argue that powerful CEOs induce their boards to shift the weight on performance measures towards the better performing measures, thereby rigging the incentive part of their pay. The intuition is developed in a simple model in which some powerful CEOs exploit superior information and lack of...
Persistent link: https://www.econbiz.de/10012727442
To estimate the grant-date expense of their employee stock options (ESOs), as required under the new accounting rules (FAS 123R), companies have typically had to choose among various theoretical valuation models because there is no secondary market for ESOs. Different models, all permissible...
Persistent link: https://www.econbiz.de/10012730652
It is well known that historically a larger number of firms issue common stock and the proportion of external financing accounted for by equity is substantially higher in expansionary phases of the business cycle. We show that this phenomenon is consistent with firms selling seasoned equity when...
Persistent link: https://www.econbiz.de/10012780092
Persistent link: https://www.econbiz.de/10015396000