Bankrupt firms should reorganize if the wealth created by continuing is expected to exceed the wealth that would be created by liquidating. We examine 89 firms that reorganized in Chapter 11 and find that, despite having sub-standard accounting profitability, nearly 80% created more wealth by...

A warrant call should only elicit a stock price reaction when there are agency costs of managerial discretion, because in this case the gains to shareholders from expropriating the time premium of the warrants may be offset by the losses when managers invest the proceeds in negative NPV...

We examine the long-run stock price and operating performance of companies that withdraw seasoned equity offerings. Firms that withdraw an offering provide an opportunity to examine the long-run impact of the intent to issue shares, independent of any agency problems that might be intensified by...

Bankrupt firms should reorganize if the wealth created by continuing is expected to exceed the wealth that would be created by liquidating. We examine 88 firms that reorganized in Chapter 11 and find that, despite having sub-standard accounting profitability, more than 80% created more wealth by...

We rank finance journals based on citations between 2003 and 2008 and compare those rankings with how they existed approximately 20 years earlier. Outside of the top four finance journals (Journal of Finance, Journal of Financial Economics, Review of Financial Studies, and Journal of Financial...

We examine the impact of managerial risk exposure on capital structure selection by comparing a sample of 123 all-equity firms to a set of levered firms matched on the basis of industry, market cap and market-to-book assets. Net debt levels decline as CEO wealth sensitivity to stock price...