The process firms use to choose their capital structures is explained by different corporate finance theories in which trade-off and pecking order are the two most popular hypotheses. Testing these two models will help to determine whether a target debt ratio exists, and if so, how rapidly firms...

On the stock market, the investors are not identical. The large investors like the institutional investors, have a significant financial effect and a different valuation of the firm from that of the small investors. When they purchase shares, these two groups are in competition. However, large...

We explore how target firm attributes affect the interest of financial versus strategic bidders in the private stages of a corporate takeover process. Using a unique set of hand-collected data from 606 US public deals from 2005 to 2016, we demonstrate the difference between strategic and...