This paper analyzes whether the financial distress of a firm affects the investment decisions of non-distressed competitors. On average, firms in distress impose indirect costs to non-distressed competitors by increasing costs of credit in the industry and hence restricting credit access and...

I propose a neoclassical production economy with costly external financing, partial investment irreversibility, and endogenous investment/financing decisions to rationalize and quantify the well-documented interaction between the book-to-market equity effect and the financial leverage effect in...

Management in the conditions of financial crisis demands an exact estimation of target criteria of productivity of the company. Early diagnostics of weak signals of arising problems gives time for adaptation and protective reaction. It is important to find exact indicators of management the...

Modern institutes of the market form new factors of the global economy. Stock exchanges, other institutes of the investment market, financial Internet communications create the integrated pace of world economic system. The companies test direct influence from global information-financial space....

In article the problem of systemic market efficiency of the enterprise is considered. It is offered to estimate systemic effect of the enterprise concerning market rate of efficiency. The systemic effect is treated as the specified size of the residual income. In the article The concept of the...

The problem of Business Systemic Efficiency becomes actual in the conditions of financial crisis. In article the concept and ways of calculation of Business Systemic Efficiency is considered. The approach to enterprise classification by Business Systemic Efficiency Criterion is shown. Definition...

Financial strategy is about how companies raise funds and manage them within their organizations. Corporate governance is relevant to both of these aspects, and an understanding of corporate governance is vital for an appreciation of corporate finance. This chapter from Corporate Financial...

We find that to mitigate refinancing risk caused by shorter maturity debt, firms increase their cash holdings and save more cash from their cash flows. We also document that the maturity of U.S. firms' long-term debt has markedly shortened over the 1980-2008 period and that this shortening...

Leverage cross sections more than a few years apart differ markedly, with similarities evaporating as the time between cross sections lengthens. Many firms have high and low leverage at different times, but few keep debt-to-assets ratios consistently above 0.500. Capital-structure stability is...