Showing 1 - 3 of 3
I analyze 181 equity carve-outs to determine whether the transactions are motivated by potential efficiency improvements or by an opportunity to sell overvalued equity. Carve-out operating performance peaks at issue, declining significantly thereafter. Parents sell a greater percentage of shares...
Persistent link: https://www.econbiz.de/10005315575
Persistent link: https://www.econbiz.de/10010889064
I derive the optimal maturity period for corporate debt used to finance a specific project, when costly financial distress is triggered by the inability to meet coupon obligations. My model predicts a negative relation between bond risk and maturity, and it explains why high-grade bonds show...
Persistent link: https://www.econbiz.de/10008518526