This paper examines the role of trade credit in a comprehensive panel of 290,301 SMEs across 15 European countries over the period 2003-2012. The results show that trade credit served as an important source of finance for credit constrained firms, and that the financial position of firms...

This paper examines the role of firm-level experience in the context of divestitures. We find that divesting firms that have recent divestiture experience (hereafter, experienced divestors) are more likely to sell peripheral or underperforming units, and to divest during industry merger waves....

We show that minority acquisitions are more common for targets in countries with worse information environments. The effect is stronger for diversifying acquisitions, deals for high-tech targets, and when the bidder has prior acquisition experience. Minority acquisitions can also be a...

Predictability and variability are two measures commonly used in the empirical literature to gauge the quality of earnings and hence, decision usefulness to investors. We adopt both measures to investigate empirically the relative quality of Stern Stewart's measure of economic value added (EVA)...

We study whether managers' are correct in their perception that investors are myopic towards more ‘innovative' investments, defined in this paper as those in research and development (R&D) and information technology (IT). We first examine the stock market's relative response to investments...

It is generally accepted that excessive exuberance or gloom in investor sentiment contributes to booms and crashes in asset prices but, because of its complex interaction with other aspects of the valuation process, these effects are not easy to identify with statistical confidence and this...