Existing literature on dual holding exclusively focuses on cases where the holder is primarily a creditor and buys the firm’s stocks to reduce potential wealth transfer. However, wealth transfer is not a concern when the dual holder is a stockholder first and later becomes a bondholder. We...

Serfling (2016) examines how the increase in firing costs impacts the capital structure decisions of firms and hypothesizes that higher firing costs of labor lead to a decline in a firm’s financial leverage use by directly increasing its distress costs and indirectly lifting its operating...

Serfling (2016) examines how the increase in firing costs impacts the capital structure decisions of firms and hypothesizes that higher firing costs of labor lead to a decline in a firm’s financial leverage use by directly increasing its distress costs and indirectly lifting its operating...

AAII.com ranks four stock-picking models by Buffet, Graham, Greenblatt, and O’Neil (CAN SLIM) that consistently outperform the S&P 500. Implementing these models requires complicated procedures an average investor might find challenging. Also, the website does not identify the companies...

This study investigates the effects of firm-level political risk on corporate investments and operating efficiencies for industrially diversified and focused firms. Using firm-level political risk data from Hassan et al.(2019), we document that both political risk and diversification lead to...

A debate exists on the issue of whether a governance system is value additive or even necessary for a privately-held firm. One side of the debate suggests that, in absence of agency problems, a private firm does not need a costly governance system. The other side argues that a private firm...