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Fraudulent Corporate Signals : Conduct as Securities Fraud

Utset, Manuel A. - 2014

Paying a dividend, repurchasing shares, underpricing an initial public offering, pledging collateral, and borrowing …

Persistent link: https://www.econbiz.de/10013065343

Why is equity capital expensive for opaque banks?

Kauko, Karlo - Suomen Pankki - 2012

-Miller irrelevance theorem. This paper combines dividend signalling theories and the Diamond-Dybvig bank run model. An opaque bank must … signal its solvency by paying high and stable dividends in order to keep depositors tranquil. This signalling may require … costly liquidations if the return on assets has been poor, but not paying the dividend might cause panic and trigger a run on …

Persistent link: https://www.econbiz.de/10010611665

Optimal Leverage and Investment Under Uncertainty

Személy, Béla - 2012

This paper studies the effects of changes in uncertainty on optimal leverage and investment in a dynamic firm-financing model in which firms have access to complete markets subject to collateral constraints. Entrepreneurs finance projects with their net worth and by issuing state-contingent...

Persistent link: https://www.econbiz.de/10013109171

How Relative Compensation Can Lead to Herding Behavior

Chen, An - 2013

In this paper we analyze performance-based remuneration for risk-averse managers in a Black Scholes-type model. We assume that the firm's performance is influenced by an industry and a firm-specific risk. A relative performance compensation which rewards a manager relative to the exogenous...

Persistent link: https://www.econbiz.de/10013086767

Asymmetric Information, Financial Reporting, and Open Market Share Repurchases

Billett, Matthew T. - 2015

We explore the link between open market share repurchases (OMRs) and asymmetric information - based on financial reporting quality - and find opaque firms experience positive abnormal returns twice the magnitude of transparent firms. These significant differences remain after controlling for...

Persistent link: https://www.econbiz.de/10013038194

Insider Trading Direction and Optional Wage Design

Inci, A. Can - 2016

This paper uses the insider trading direction as a signal to design an optimal wage contract, where the principal-agent problem due to moral hazard is resolved. Insider trading provides the corporation important information about the action of the manager. It is a tough challenge for the owners...

Persistent link: https://www.econbiz.de/10013001356

A Model of Strategic Stock Buybacks

Chen, Alvin - 2020

This paper studies the authorization and execution of buybacks in a Kyle micro-structure setting with two informed parties: a speculator who trades on his own account and a manager who implements buybacks for the firm. Buybacks introduce two opposing economic forces. On the one hand, informed...

Persistent link: https://www.econbiz.de/10012841170

A Canonical Model of Disagreement and Moral Hazard with Applications

Thakor, Anjan V. - 2019

analyzed: capital budgeting, mergers and acquisitions, and dividends. These applications help square the theory with …

Persistent link: https://www.econbiz.de/10012905713

Dynamic Compensation Contracts and Capital Structure under Loss Aversion

Hori, Keiichi - 2018

contract using a combination of equity, long-term debt, and a line of credit, we also predict that dividend payments are … results provide a unified explanation for the evolution of CEO compensation and corporate dividend-smoothing policy. The …

Persistent link: https://www.econbiz.de/10012938648

Theories of Executive Remuneration

Nedelchev, Miroslav - 2019

The aim of the article is to present the theories of remuneration. Both classical and modern theories are presented within their time and economic environment. The anchor of article is the model principal-agent and reducing asymmetric information through remuneration. The conclusions of the...

Persistent link: https://www.econbiz.de/10012869679