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作者：Mayers, D
作者单位：University of California System; University of California Riverside
摘要：This paper contends that corporations use callable, convertible bonds to lower the issuance costs of sequential financing. Sequential financing increases issue costs but helps control overinvestment incentives that can arise if financing is provided prior to an investment option's maturity. A convertible bond's conversion option reduces issue costs while helping to control the overinvestment incentive. Evidence of important investment and financing activity around the time convertible bonds ar...
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作者：Weiss, LA; Wruck, KH
作者单位：Harvard University; INSEAD Business School
摘要：Eastern Airlines' bankruptcy illustrates the devastating effect on firm value of court-sponsored asset stripping, i.e., the use of creditors' collateral to invest in high-variance negative net present value projects. During its bankruptcy, Eastern's value dropped over 50%. A substantial portion of this value decline occurred because an overprotective court insulated Eastern from market forces and allowed value-destroying operations to continue long after it was clear that Eastern should have b...
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作者：Froot, KA; Stein, JC
作者单位：Massachusetts Institute of Technology (MIT); Harvard University
摘要：We develop a framework for analyzing the capital allocation and capital structure decisions facing financial institutions. Our model incorporates two key features: (i) value-maximizing banks have a well-founded concern with risk management; and (ii) not all the risks they face can be frictionlessly hedged in the capital market. This approach allows us to show how bank-level risk management considerations should factor into the pricing of those risks that cannot be easily hedged. We examine sev...
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作者：Bloomfield, R; O'Hara, M
作者单位：Cornell University
摘要：This study examines how order preferencing affects the competitiveness and efficiency of laboratory financial markets. We operationalize preferencing by allowing some dealers to execute a portion of the order flow by matching the most favorable quotes available. Increasing the proportion of order how that is preferenced can increase bid-ask spreads, reduce the informational efficiency of prices, and benefit dealers at the expense of liquidity traders. Preferencing has none of these effects, ho...
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作者：Fleming, J; Kirby, C; Ostdiek, B
作者单位：Rice University; University of Texas System; University of Texas Dallas
摘要：We investigate the nature of volatility linkages in the stock, bond, and money markets. We develop a simple model of speculative trading that predicts strong volatility linkages in these markets due to common information, which simultaneously affects expectations across markets, and information spillover caused by cross-market hedging. To measure these linkages, we estimate a stochastic volatility representation of our trading model using GMM. The results indicate that our specification explai...
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作者：Cho, MH
作者单位：Korea University; Vanderbilt University
摘要：This paper examines the relation among ownership structure, investment, and corporate value, focusing on whether ownership structure affects investment. Ordinary least squares regression results suggest that ownership structure affects investment and, therefore, corporate value. However, simultaneous regression results indicate that the endogeneity of ownership may affect these inferences, suggesting that investment affects corporate value which, in turn, affects ownership structure. The evide...
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作者：Stoughton, NM; Zechner, J
作者单位：University of California System; University of California Irvine; University of Vienna
摘要：This paper analyzes the effect of different IPO mechanisms on the structure of share ownership and explores the role of underpricing and rationing in determining investors' shareholdings. We focus on the agency problem that results when large institutions are the only investors capable of monitoring the firm whereas small shareholders free-ride on these activities. The major conclusion is that some well-known aspects of IPOs may be explained as rational responses by the issuer to the existence...
