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作者：Haushalter, David; Klasa, Sandy; Maxwell, William F.
作者单位：University of Arizona; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
摘要：Prior work suggests that if a firm shares a larger proportion of its growth opportunities with rivals, an inability to fully invest in these opportunities leads to predatory behavior on the part of rivals and losses in market share. We examine whether firms manage this predation risk. We find inter- and intra-industry evidence that the extent of the interdependence of a firm's investment opportunities with rivals is positively associated with its use of derivatives and the size of its cash hol...
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作者：Caggese, Andrea
作者单位：Pompeu Fabra University
摘要：We consider a dynamic multifactor model of investment with financing imperfections, adjustment costs and fixed and variable capital. We use the model to derive a test of financing constraints based on a reduced form variable capital equation. Simulation results show that this test correctly identifies financially constrained firms even when the estimation of firms' investment opportunities is very noisy. In addition, the test is well specified in the presence of both concave and convex adjustm...
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作者：Acharya, Viral V.; Bharath, Sreedhar T.; Srinivasan, Arland
作者单位：University of Michigan System; University of Michigan; University of London; London Business School; National University of Singapore
摘要：Using data on defaulted firms in the United States over the period 1982-1999, we show that creditors of defaulted firms recover significantly lower amounts in present-value terms when the industry of defaulted firms is in distress. We investigate whether this is purely an economic-downturn effect or also a fire-sales effect along the lines of Shleifer and Vishny [1992. Liquidation values and debt capacity: a market equilibrium approach. Journal of Finance 47, 1343-1366]. We find the fire-sales...
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作者：Ang, Andrew; Liu, Jun
作者单位：Columbia University; University of California System; University of California San Diego
摘要：Using only the definition of returns, together with a transversality assumption, we demonstrate that given a dividend process, any one of three variables-expected return, return volatility, and the price-dividend ratio-completely determines the other two. By parameterizing only one of these processes, common empirical specifications place strong, and sometimes counter-factual, restrictions on the dynamics of the other variables. Our findings lend insight into the nature of the risk-return rela...
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作者：Fan, Joseph P. H.; Wong, T. J.; Zhang, Tianyu
作者单位：Chinese University of Hong Kong; City University of Hong Kong
摘要：Almost 27% of the CEOs in a sample of 790 newly partially privatized firms in China are former or current government bureaucrats. Firms with politically connected CEOs underperform those without politically connected CEOs by almost 18% based on three-year post-IPO stock returns and have poorer three-year post-IPO earnings growth, sales growth, and change in returns on sales. The negative effect of the CEO's political ties also show up in the first-day stock return. Finally, firms led by politi...
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作者：Gaspar, Jose-Miguel; Massa, Massimo
作者单位：INSEAD Business School; ESSEC Business School
摘要：We investigate how ownership patterns affect the way the firm is monitored, the liquidity of its shares, and its stock price. We show that informed ownership improves governance and induces value-enhancing decisions (less over-investment and fewer but better acquisitions). At the same time, it increases the adverse selection discount required by less informed investors to trade, reducing the firm's liquidity. Both effects are impounded in the stock price. This explains why ownership seems to b...
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作者：Efendi, Jap; Srivastava, Anup; Swanson, Edward P.
作者单位：Texas A&M University System; Texas A&M University College Station; Mays Business School; California State University System; California Polytechnic State University San Luis Obispo
摘要：We investigate the incentives that led to the rash of restated financial statements at the end of the 1990s market bubble. We find that the likelihood of a misstated financial statement increases greatly when the CEO has very sizable holdings of in-the-money stock options. Misstatements are also more likely for firms that are constrained by an interest-coverage debt covenant, that raise new debt or equity capital, or that have a CEO who serves as board chair. Our results indicate that agency c...
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作者：Hennessy, Christopher A.; Levy, Amnon; Whited, Toni M.
作者单位：University of California System; University of California Berkeley; University of Wisconsin System; University of Wisconsin Madison
摘要：We develop a Q theory of investment under financing constraints. The firm invests and saves optimally facing convex costs of external equity, overhang from outstanding debt, and collateial constraints on new borrowing. Overhang and costs of external equity discourage investment. Conversely, firms anticipating collateral constraints experience a side benefit from investing as installed capital relaxes future constraints. Empirical tests support the model. Conditional on average Q, investment is...
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作者：Kale, Jayant R.; Shahrur, Husayn
作者单位：Bentley University; University System of Georgia; Georgia State University
摘要：We investigate the link between a firm's leverage and the characteristics of its suppliers and customers. Specifically, we examine whether firms use decreased leverage as a commitment mechanism to induce suppliers/customers to undertake relationship-specific investments. We find that the firm's leverage is negatively related to the R&D intensities of its suppliers and customers. We also find lower debt levels for firms operating in industries in which strategic alliances and joint ventures wit...
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作者：Grenadier, Steven R.; Wang, Neng
作者单位：Columbia University; Stanford University; National Bureau of Economic Research
摘要：While standard real options models assume that agents possess a constant rate of time preference, there is substantial evidence that agents are impatient about choices in the short term but are patient when choosing between long-term alternatives. We extend the real options framework to model the investment-timing decisions of entrepreneurs with time-inconsistent preferences. The impact on investment-timing depends on such factors as whether entrepreneurs are sophisticated or naive in their ex...
