Although several researchers have speculated that stock splits may affect the ownership structure of firms, there is very little empirical evidence available in this regard. We investigate a broad sample of stock splits by firms without confounding events, controlling for industry and size...

This paper examines the market reaction to the announcement of Debtor-in-Possession (DIP) loan agreements on the market value of equity of DIP borrowers. It studies the relation between DIP financing and the probability of successful reorganization, the length of time spent under Chapter 11...

We use new data measuring forward-looking physical climate risk at the firm level to examine the impact of climate risk on capital structure. We find that greater climate risk leads to lower leverage in the post-2015 period, i.e., after the Paris Agreement. Our results hold after controlling for...

Banks rely on risk managers to prevent their employees from making high risk low value investments. Why can't the CEOs directly incentivize their employees to choose the most profitable investment? I show that having a separate risk manager is more profitable for banks and is also socially...

We investigate the Dead Hand Proxy Put, a contractual innovation in corporate debt agreements that may impact hedge fund activism. We find the provision principally in loans, not bonds, and provide evidence linking adoption of the provision to hedge fund activism. Further, controlling for...

How do developments at lending institutions that alter the way they grant and monitor loans influence their borrowers' financial reporting quality (FRQ)? We examine this question by investigating the influence that privatizations of Chinese state banks (CSBs) had on the quality of their...

Speed is a critical feature of modern capital markets. To identify the effects of speed in U.S. corporate bond markets, we use eligibility cutoffs that allow ``well-known seasoned issuers'' (WKSI) to accelerate issuances and reduce review time. After determining that this change initiated...

This paper uses bank fragility to explain why bank loans are senior in firm capital structure. High leverage makes banks more vulnerable to financial distress than the typical bond investor, and thus makes banks willing to pay for seniority. Bank seniority emerges even when banks need skin in...

This study analyzes differences by gender in the ownership of privately held U.S. firms and examines the role of gender in the availability of credit. Using data from the nationally representative Surveys of Small Business Finances, which span a period of sixteen years, we document a series of...

The purpose of this paper is to analyse the technological and organizational innovations in the retail banking, with particular reference to the multi-channel banking business model. The key elements of this paper are the distinctive features of the application of the multi-channel model in the...