-
作者：Campbell, John L.; Dhaliwal, Dan S.; Schwartz, William C., Jr.
作者单位：Oklahoma State University System; Oklahoma State University - Stillwater; University of Arizona; University System of Georgia; University of Georgia
摘要：We investigate the relation between firms' weighted average cost of capital and internal financial resources, using mandatory pension contributions as a proxy for internal financial resources. Rauh (2006) documents a negative association between mandatory pension contributions and capital expenditures. We find that an increase in mandatory pension contributions increases the cost of capital, but only for firms facing greater external financing constraints. Our results suggest that firms' cost ...
-
作者：Dougal, Casey; Engelberg, Joseph; Garcia, Diego; Parsons, Christopher A.
作者单位：University of California System; University of California San Diego; University of North Carolina; University of North Carolina Chapel Hill; University of California System; University of California San Diego
摘要：We use exogenous scheduling of Wall Street Journal columnists to identify a causal relation between financial reporting and stock market performance. To measure the media's unconditional effect, we add columnist fixed effects to a daily regression of excess Dow Jones Industrial Average returns. Relative to standard control variables, these fixed effects increase the R-2 by about 35%, indicating each columnist's average persistent bullishness or bearishness. To measure the media's conditional e...
-
作者：Hackbarth, Dirk; Mauer, David C.
作者单位：University of Illinois System; University of Illinois Urbana-Champaign; University of Texas System; University of Texas Dallas
摘要：We study the interaction between financing and investment decisions in a dynamic model, where the firm has multiple debt issues and equityholders choose the timing of investment. Jointly optimal capital and priority structures can virtually eliminate investment distortions because debt priority serves as a dynamically optimal contract. Examining the relative efficiency of priority rules observed in practice, we develop several predictions about how firms adjust their priority structure in resp...
-
作者：Aragon, George O.; Nanda, Vikram
作者单位：Arizona State University; Arizona State University-Tempe; University System of Georgia; Georgia Institute of Technology
摘要：We analyze whether risk shifting by a hedge fund manager is related to the manager's incentive contract, personal capital stake, and the risk of fund closure. We find that the propensity to increase risk following poor performance is significantly weaker when incentive pay is tied to the fund's high-water mark and when funds face little immediate risk of liquidation. Risk shifting is also less prevalent when a manager has a significant amount of personal capital invested in the fund. Overall, ...
-
作者：Anderson, Ronald W.; Carverhill, Andrew
作者单位：University of London; London School Economics & Political Science; University of Hong Kong
摘要：We solve for a firm's optimal cash holding policy within a continuous time, contingent claims framework using dividends, short-term borrowing, and equity issues as controls assuming mean reversion of earnings. Optimal cash is non-monotone in business conditions and increasing in the level of long-term debt. The model matches closely a wide range of empirical benchmarks and predicts cash and leverage dynamics in line with the empirical literature. Firm value is quite insensitive to changes in t...
