We examine whether financing commitments from a target firm's financial advisor, in the form of stapled financing, provide certification of target value. Using a dataset of leveraged buyouts spanning 2002-2011, and addressing endogeneity issues, we find that stapled financing has significantly...

We theoretically and empirically analyze whether the rise in globalization and trade integration of product markets have contributed to the observed decline in US entrepreneurship. Using a unique panel dataset of US households and a difference-in-differences identification strategy, our study is...

What are the real effects of forced sales of corporate securities? Our theoretical analysis shows that model uncertainty can generate distorted negative (positive) capital investment effects during price declines (reversals) in equilibrium when there is information feedback from financial...

We examine the product market spillover effects of hedge fund activism (HFA) on the industry rivals of target firms. HFA has negative real and stockholder wealth effects on the average rival firm. The effects on rivals' product market performance is commensurate with post-activism improvements...

Is the decision to go public or private a stock market driven 'side-show' or does it have significant effects on investment and profitability‘ We address this issue using a comprehensive dataset of private and public companies in the UK during 1996-2006. Firms with high investment-financing...

Entrepreneurial firms seeking public financing are typically intrinsically difficult to value, and investors are subject to valuation risk. Public firms, motivated by profitable acquisition opportunities, compete with stock markets (i.e., IPOs) in evaluating and financing such firms. We analyze...