This study investigates the linkages between firm age and cash holdings. We document that younger firms save more cash from their cash flows, while we do not find any systematic cash saving pattern for older firms. This linkage is robust to controlling for firm size, and other control variables...

We analyze the control and performance of assets operating in joint ventures (JVs). Control in JVs is determined by the allocation of voting rights and by the contracts that govern the JVs. This hybrid allocation of control is aimed to ameliorate the potential for ex-post opportunism. An equal...

Information effects hypothesis and price pressure hypothesis are two major theories when explaining negative market reaction on acquiring firms' stock prices during stock financed mergers and acquisitions. However, it is difficult to hold the information effects constant and to distinguish...

We provide a new explanation for the systemic decreases in the book equity of U.S. firms. We find that accounting conservatism is negatively associated with book equity, a result that is both economically and statistically significant as well as robust to a variety of model specifications. Our...

Purpose – This paper aims to examine whether the substitution of employee stock options (ESOs) for debt occurs for firms with different tax status classifications throughout the conditional distribution of interest expense before and after the implementation of Statement of Financial...