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A Theory of Income Smoothing When Insiders Know More Than Outsiders

Acharya, Viral V; Lambrecht, Bart - C.E.P.R. Discussion Papers - 2012

We consider a setting in which insiders have information about income that outside shareholders do not, but property rights ensure that outside shareholders can enforce a fair payout. To avoid intervention, insiders report income consistent with outsiders' expectations based on publicly...

Persistent link: https://www.econbiz.de/10011083832

Can Buybacks Be A Product of Shorter Shareholder Horizons?

Gaspar, José-Miguel; Massa, Massimo; Matos, Pedro Pinto; … - C.E.P.R. Discussion Papers - 2004

We examine how shareholder investment horizons influence firms’ payout decisions. We find that US firms held by short … liquidate their investment and may have a better tax treatment with dividends. We document two effects of investor pressure: for …. Our findings help explain some of the puzzling recent findings relating the rise in institutional investment to a higher …

Persistent link: https://www.econbiz.de/10005123950

Capital Structure and Regulation: Do Ownership and Regulatory Independence Matter?

Bortolotti, Bernardo; Cambini, Carlo; Rondi, Laura; … - C.E.P.R. Discussion Papers - 2008

, and it also has a positive and significant effect on their market values. Our results are consistent with the theory that …

Persistent link: https://www.econbiz.de/10005497873

Moral Hazard and Capital Structure Dynamics

Dewatripont, Mathias; Legros, Patrick; Matthews, Steven A - C.E.P.R. Discussion Papers - 2002

We base a contracting theory for a start-up firm on an agency model with observable but nonverifiable effort, and …

Persistent link: https://www.econbiz.de/10005498043

Bank Capital, Liquid Reserves, and Insolvency Risk

Hugonnier, Julien; Morellec, Erwan - C.E.P.R. Discussion Papers - 2015

We develop a dynamic model to assess the effects of liquidity and leverage requirements on banks' insolvency risk. The model features endogenous capital structure, liquid asset holdings, payout, and default decisions. In the model, banks face taxation, flotation costs of securities, and default...

Persistent link: https://www.econbiz.de/10011165669

Thin Capitalization Rules and Multinational Firm Capital Structure

Blouin, Jennifer; Huizinga, Harry; Laeven, Luc; … - C.E.P.R. Discussion Papers - 2014

This paper examines the impact of thin capitalization rules that limit the tax deductibility of interest on the capital structure of the foreign affiliates of US multinationals. We construct a new data set on thin capitalization rules in 54 countries for the period 1982-2004. Using confidential...

Persistent link: https://www.econbiz.de/10011083337

Borrow Cheap, Buy High? The Determinants of Leverage and Pricing in Buyouts

Axelson, Ulf; Jenkinson, Tim; Strömberg, Per Johan; … - C.E.P.R. Discussion Papers - 2012

Private equity funds pay particular attention to capital structure when executing leveraged buyouts, creating an interesting setting for examining capital structure theories. Using a large, detailed, international sample of buyouts from 1980-2008, we find that buyout leverage is unrelated to the...

Persistent link: https://www.econbiz.de/10011083386

Preserving "Debt Capacity" or "Equity Capacity": A Dynamic Theory of Security Design under Asymmetric Information

Inderst, Roman; Vladimirov, Vladimir - C.E.P.R. Discussion Papers - 2014

theory also entails implications for start-up and venture capital financing. …

Persistent link: https://www.econbiz.de/10011084368

The Macroeconomics of Modigliani-Miller

Gersbach, Hans; Haller, Hans; Müller, Jürg - C.E.P.R. Discussion Papers - 2013

We examine the validity of a macroeconomic version of the Modigliani-Miller theorem. For this purpose, we develop a general equilibrium model with two production sectors, risk-averse households and financial intermediation by banks. Banks are funded by deposits and (outside) equity and monitor...

Persistent link: https://www.econbiz.de/10011084423

A New Test of Capital Structure

Mayer, Colin; Sussman, Oren - C.E.P.R. Discussion Papers - 2004

This Paper reports a new test of capital structure theories. It uses a filtering technique to identify large investment …

Persistent link: https://www.econbiz.de/10005067393