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Financing Failure : Bankruptcy Lending, Credit Market Conditions, and the Financial Crisis

Tung, Frederick - 2020

When contemplating Chapter 11, firms often need to seek financing for their continuing operations in bankruptcy. Because such financing would otherwise be hard to find, the Bankruptcy Code authorizes debtors to offer sweeteners to debtor-in-possession (DIP) lenders. These inducements can be...

Persistent link: https://www.econbiz.de/10012828010

Size matters : "over"investments in a relational contracting setting

Englmaier, Florian; Fahn, Matthias - 2015

The corporate finance literature documents that managers tend to overinvest into physical assets. A number of theoretical contributions have aimed to explain this stylized fact, most of them focussing on a fundamental agency problem between shareholders and managers. The present paper shows that...

Persistent link: https://www.econbiz.de/10011285326

Size matters : "over"investments in a relational contracting setting

Englmaier, Florian; Fahn, Matthias - 2018

The corporate finance literature documents that managers tend to over-invest in their companies. A number of theoretical contributions have aimed at explaining this stylized fact, most of them focusing on a fundamental agency problem between shareholders and managers. The present paper shows...

Persistent link: https://www.econbiz.de/10011895831

Equity Issues, Creditor Control and Market Timing Patterns : Evidence From Leverage Decreasing Recapitalizations

Kisser, Michael - 2020

We contribute to the literature on “market timing” by exploring periods of simultaneous equity issues and debt retirements (a leverage decreasing recapitalization, LDR). We hypothesize and show that such LDRs are driven by measures of creditor control but are not predicted by capital...

Persistent link: https://www.econbiz.de/10012854505

The application of financing and dividend decision techniques in practice among Ghanaian chief financial officers (CFOs)

Owusu-Ansah, Anthony; Addico, Nene Lartey; Amewu, Godfred - In: Cogent business & management 10 (2023) 1, pp. 1-31

We use a survey approach to investigate how managers in a frontier market apply financing and dividend decision techniques in practice. 15 firm characteristics were grouped into paired subgroups for a two-sample t-test analysis that generated statistical differences, economic significance levels...

Persistent link: https://www.econbiz.de/10014469158

Chapter 4. Financing of Corporations

Myers, Stewart C. - 2003

This review evaluates the four major theories of corporate financing: (1) the Modigliani–Miller theory of capital …-structure irrelevance, in which firm values and real investment decisions are unaffected by financing; (2) the trade-off theory, in which … financing responds to managers’ personal incentives; and (4) the pecking-order theory, in which financing adapts to mitigate …

Persistent link: https://www.econbiz.de/10014023872

Debt restructuring with multiple bank relationships

Baglioni, Angelo; Colombo, Luca; Rossi, Paola - 2019

When the debt of firms in distress is dispersed, a restructuring agreement is difficult to reach because of free riding. We develop a repeated game in which banks come across each other frequently, allowing them to threaten a punishment in case of free riding. As the number of lending banks...

Persistent link: https://www.econbiz.de/10011962128

Performance Sensitive Debt - Investment and Financing Incentives

Myklebust, Tor Age - 2012

Performance sensitive debt (PSD) contracts link the paid coupon to a measure of firm performance. PSD contracts are widely used, especially as corporate bank loans. In a model where a firm has assets in place and the opportunity to invest in a growth option, I analyze how PSD affects...

Persistent link: https://www.econbiz.de/10013103922

Competition, cash holdings, and financing decisions

Morellec, Erwan; Nikolov, Boris; Zucchi, Francesca - 2013

theory …

Persistent link: https://www.econbiz.de/10010258537

Investor taxation, firm heterogeneity and capital structure choice

Haring, Magdalena; Niemann, Rainer; Rünger, Silke - 2016

We analyze the effect of investor level taxes, firm-specific ownership structure and firm-specific payout policy on firms' capital structure choice. Our analysis is based on data for 10,983 firms from 13 Central and Eastern European (CEE) countries over the time period 2002-2012. Our results...

Persistent link: https://www.econbiz.de/10011541065