Showing 1 - 10 of 330
theory of investment and dividend policy, where dividends are paid by self-interested CEOs to maintain a balance between …
Persistent link: https://www.econbiz.de/10004980207
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 …
Persistent link: https://www.econbiz.de/10011083832
-term oriented shareholders, while firms pay dividends if their stock is mostly held by long-term investors who have less need to …
Persistent link: https://www.econbiz.de/10005123950
We develop a dynamic model of investment, cash holdings, financing, and risk management policies in which firms face financing frictions and are subject to permanent and temporary cash flow shocks. In this model, target cash holdings depend on the long-term prospects of the firm, implying that...
Persistent link: https://www.econbiz.de/10011168895
was exacerbated by large scale payments of dividends, in spite of widely anticipated credit losses. Dividend payments …
Persistent link: https://www.econbiz.de/10011083440
behavior. By paying out dividends, a bank transfers value to its shareholders away from creditors, among whom are other banks …. This way, one bank's dividend payout policy affects the equity value and risk of default of other banks. When such negative …
Persistent link: https://www.econbiz.de/10011084101
We consider a model in which banks face two moral hazard problems: 1) asset substitution by shareholders, which can … to creditors upon failure so as to retain market discipline and be made available to shareholders only contingent on good …
Persistent link: https://www.econbiz.de/10011084299
smooth dividend policy. We present a model that explains this behavior in a setting where there are financial externalities … across banks. In particular, by paying out dividends, a bank transfers value to its shareholders away from its creditors, who … in turn are other banks. This way, one bank's dividend payout policy aects the equity value and risk of default of otther …
Persistent link: https://www.econbiz.de/10011084390
We analyse dynamic financial contracting under moral hazard. The ability to rely on future rewards relaxes the tension between incentive and participation constraints, relative to the static case. Managers are incited by the promise of future payments after several successes and the threat of...
Persistent link: https://www.econbiz.de/10005067486
Using a newly-constructed data set on Israeli Initial Public Offering (IPO) firms in the 1990s, we study costs and benefits of universal banking. We find that a firm whose equity was underwritten by a bank-affiliated underwriter, when the same bank was also a large creditor of the firm in the...
Persistent link: https://www.econbiz.de/10005791310