Thesis (Ph. D.)--University of Rochester. William E. Simon Graduate School of Business Administration, 2009.

If debt capacity is defined as the incremental debt that is optimally associated with an additional asset, then the debt capacity of growth options is negative. Underinvestment costs of debt increase and free cash flow benefits of debt fall with additional growth options. Thus, if firm value...

We analyze board-turnover of firms implicated in stock-option backdating to assess the effectiveness of board elections within the corporate governance process. Despite high reelection rates among nominated directors, board-turnover was substantial. Critically, these turnover decisions were...

We examine a vertical integration decision within the commercial banking industry. During the last quarter of the 20th century, some community banks reduced their traditional reliance on correspondent banks for upstream products and services by joining bankers' banks, a form of business...

Our purpose is to provide a review of the development of the modern theory of corporate finance. Through the early 1950s the finance literature consisted in large part of ad hoc theories. Dewing (1919; 1953) the major corporate finance textbook for a generation, contains much institutional detail...

This paper analyses interactions among investment policy, financial policies, and the market for corporate control. Both hedging and financing policies affect a firm's investment policy, thus changing costs of over- and under-investment. Both policies allow management to offer credible promises...

We examine 98 property-casualty insurance companies that convert to stock charter from a mutual or reciprocal form of organization. Our evidence shows converting firms have low surplus, significant growth in premium income, and draw down on their non-financial assets in years prior to...

This paper analyzes the interaction among investment, financing and hedging policies in a model where managers derive perquisites from investment. In our model, both hedging and financing policies affect a firm's investment policy, thus changing costs of over- and underinvestment. The paper...