We conduct a detailed empirical study of the effects of cash flow volatility on corporate bond yield spreads. Using a lengthy sample of transaction prices for investment grade straight bonds, we show that cash flow risk has strong statistical significance and economic effects on spreads, after...

We examine the nurturing effect of Anti-Takeover Provisions (ATPs) on corporate innovation, and the interpretation that ATPs protect firms against undervaluation in the market. We illustrate that the effect is driven by explorative, as opposed to exploitative, innovation. This casts doubt on the...

This paper helps to explain the dividend patterns of large corporations by presenting a dynamic model where payout based incentives simultaneously mitigate opportunistic actions (perquisites) and induce managers to convey inside information to the market. Incentive compatibility links the...

Following John Graham's (2022) presidential address we develop a simple financing decision-rule under which leverage is not a priority unless it hits `dangerous' levels, and show how this rule helps reduce the gap between research and reality. The rule leads to debt financing that is distinct...