-
作者：Francis, Bill B.; Hasan, Iftekhar; Hunter, Delroy M.
作者单位：Rensselaer Polytechnic Institute; Bank of Finland; State University System of Florida; University of South Florida
摘要：While the importance of currency movements to industry competitiveness is theoretically well established, there is little evidence that Currency risk impacts US industries. Applying a conditional asset pricing model to 36 US industries, we find that all industries have a Significant Currency premium that adds about 2.47 percentage points to the cost of equity and accounts for approximately 11.7% of total risk premium in absolute Value. Cross-industry Variation in the Currency premium is explai...
-
作者：Bizjak, John M.; Lemmon, Michael L.; Naveen, Lalitha
作者单位：Portland State University; Utah System of Higher Education; University of Utah; Pennsylvania Commonwealth System of Higher Education (PCSHE); Temple University
摘要：We provide empirical evidence on how the practice of competitive benchmarking affects chief executive officer (CEO) pay. We find that the use of benchmarking is widespread and has a significant impact on CEO compensation. One view is that benchmarking is inefficient because it can lead to increases in executive pay not tied to firm performance. A contrasting view is that benchmarking is a practical and efficient mechanism used to gauge the market wage necessary to retain valuable human capital...
-
作者：Guedhami, Omrane; Pittman, Jeffrey
作者单位：Memorial University Newfoundland; University of South Carolina System; University of South Carolina Columbia
摘要：We examine the link between Internal Revenue Service (IRS) monitoring and yield spreads on private firms' 144A bond issues. After controlling for security-specific and other firm-specific determinants, we provide evidence that debt financing is cheaper when the probability of a face-to-face IRS audit is higher. Consistent with another prediction, we find that IRS oversight has a stronger impact on bond pricing for private firms with high ownership concentration, which suffer worse agency probl...
-
作者：Bottazzi, Laura; Da Rin, Marco; Hellmann, Thomas
作者单位：University of British Columbia; European Corporate Governance Institute; Tilburg University; Bocconi University; University of Bologna
摘要：This paper examines the determinants and consequences of investor activism in venture capital. Using a hand-collected sample of European venture capital deals, it shows the importance of human capital. Venture capital firms with partners that have prior business experience are more active recruiting managers and directors. helping with fundraising, and interacting more frequently with their portfolio companies. Independent venture capital firms are also more active than 'captive' (bank-, corpo...
-
作者：Chari, Anusha; Henry, Peter Blair
作者单位：Stanford University; University of Michigan System; University of Michigan
摘要：In the three-year period following stock market liberalizations, the growth rate of the typical firm's capital stock exceeds its pre-liberalization mean by an average of 4.1 percentage points. Cross-sectional changes in investment are significantly correlated with the signals about fundamentals embedded in the stock price changes that occur upon liberalization. Panel-data estimations show that a 10-percentage point increase in a firm's expected future sales growth predicts a 2.9- to 3.5-percen...
-
作者：DeAngelo, Harry; DeAngelo, Linda
作者单位：University of Southern California
-
作者：Larrain, Boria; Yogo, Motohiro
作者单位：University of Pennsylvania; Pontificia Universidad Catolica de Chile; National Bureau of Economic Research
摘要：The appropriate measure of cash flow for valuing corporate assets is net payout, which is the sum of dividends, interest, and net repurchases of equity and debt. Variation in net payout yield, the ratio of net payout to asset value, is mostly driven by movements in expected cash flow growth, instead of movements in discount rates. Net payout yield is less persistent than dividend yield and implies much smaller variation in long-horizon discount rates. Therefore, movements in the value of corpo...
-
作者：Balachandran, Balasingham; Faff, Robert; Theobald, Michael
作者单位：Monash University; University of Birmingham
摘要：Rights offerings in Australia provide valuable choices to the issuer in terms of both underwriting and renounceability. We formulate a set of hypotheses from a quality signaling perspective, affording an analysis of the key interrelations between quality, underwriting status, renounceability, takeup, and subscription price discount. We analyse rights offerings from two perspectives: market reaction to rights announcements and identification of the factors driving the choice of issue type. Evid...
-
作者：Beneish, Messod D.; Jansen, Ivo Ph.; Lewis, Melissa F.; Stuart, Nathan V.
作者单位：Indiana University System; Indiana University Bloomington; IU Kelley School of Business; Rutgers University System; Rutgers University New Brunswick; Rutgers University Camden; Utah System of Higher Education; University of Utah; State University System of Florida; University of South Florida
摘要：While it is well established that diversifying acquisitions by large, cash-rich firms destroy shareholder wealth, we document positive abnormal returns to such acquisitions in the tobacco industry. We show that these abnormal returns are associated with proxies for lower expected expropriation costs. Specifically, we show that wealth creation increases in the degree of domestic geographic expansion afforded by the acquisition (increasing tobacco firms' influence in more political districts) an...
-
作者：Graham, John R.; Li, Si; Qiu, Jiaping
作者单位：Duke University; National Bureau of Economic Research; Wilfrid Laurier University; McMaster University
摘要：This paper is the first to study the effect of financial restatement on bank loan contracting. Compared with loans initiated before restatement, loans initiated after restatement have significantly higher spreads, shorter maturities, higher likelihood of being secured, and More covenant restrictions. The increase in loan spread is significantly larger for fraudulent restating firms than other restating firms. We also find that after restatement, the number of lenders per loan declines and firm...
