How do firms finance large cash flow requirements? We examine this in the context of firms that are subject to substantial cash flow requirements. We find that trade credit, inventory and cash stock reductions are all important in the short term for mild requirements. Larger and longer cash flow...

Sometimes shareholders are better off delegating to a CEO with different objectives than their own. A top manager motivated to share surpluses with workers-a "soft" CEO-can encourage union members to adopt efficient production methods. Bond covenants may constrain managers from acquiescing to...

The role of financial institutions and corporate governance in the conduct and performance of industrial firms, especially in the area of technological innovation and international competition has been hotly debated in the recent past. The results presented here are a contribution to the...

There is strong empirical evidence that firms do not always adjust their capital structure according to established capital structure theories. Rather, they follow a passive strategy such that capital structure changes are mainly driven by their stock returns. This paper investigates to what...

In this study we analyse the effect of stock splits on stocks¿ trading activity using intraday data from a sample of 46 stock splits from the Spanish stock market. In particular, we study changes to trading activity, trading composition, the information asymmetry of stocks, the distribution of...

This paper analyzes the relationship between ownership concentration andshares liquidity for a sample of 115 listed firms that traded during the period from April2000 to December 2000. Results show a negative influence of ownership of directors,major shareholders and outside shareholders on...

This study focuses on the non-financial value-added Venture Capital (VC) investors bring to their portfolio companies, especially when these represent early-stage, high-technology and high-growth companies. The study draws attention to the extent and nature of non-financial value-added and...

This paper studies whether family businesses (FBs) differ from non-family businesses (non-FBs) in various dimensions of globalization with a representative sample of businesses in Finnish manufacturing and private services. FBs and non-FBs are not so different when it comes to export and...

This paper investigates the link between inward FDI and innovation activity in China, using a very comprehensive and recent firm level database. We pay particular attention to the impact of domestic access to finance. Our results show that firms with foreign capital participation or those with...

The problem in default probability estimation for low-default portfolios is that there is little relevant historical data information. No amount of data processing can fix this problem. More information is required. Incorporating expert opinion formally is an attractive option.