Corporate cash holdings can predict stock returns, but whether it is a risk or mispricing effect is still unclear. Through constructing a cash factor ‘LMS’, this study explores the mechanisms of cash-returns relationship. We find that although LMS is pervasive and captures co-movement in...

Does a CEO's experience with mergers matter when her firm becomes a takeover target? We find that shareholders receive higher premiums when their CEO has experience. The evidence suggests this is due to learning rather than innate skills or selection. Consistent with superior negotiation of...

This paper studies how population aging affects individuals’ choice between entrepreneurship and employment by enterprises. We develop a theoretical model where individuals are different in their entrepreneurial ability. A representative worker integrates the professional status of all workers...

This paper examines the impact of earnings transparency on corporate cash holdings. Motivated by Barth et al. (2013), who show that firms with less earnings transparency tend to have higher cost of equity, this paper shows that the cross-section differences in earnings transparency cause...

This paper studies the monitoring role of sovereign wealth funds (SWFs). By using unique dataset from one of the largest SWF: Temasek holdings, we find that SWF's presence has a positive effect on cash holdings of portfolio companies. The effect is more pronounced for well-governed firms,...