This study analyzes the structure of firms' bank pools in emerging economies characterized by corruption. In the proposed theoretical model, firm managers maximize an expected utility function that depends on both firm value and personal consumption. According to the weight they assign to each...

Whether the bank-firm relationship and political connections are the substitutes, or the complements is the well-researched question on an empirical research level on credit availability. This paper studies the influences of the bank-firm relationship and political connection on firm's access to...

We examine the effect of the introduction of the euro on the level of systemic risk for countries that adopted the common currency (euro-zone countries). Our measure of systemic risk is ∆CoVaR, introduced by Adrian and Brunnermeier (2010). We analyze the 1990-2010 period, use a large...

Corporate divestments on the stock markets have been studied since long, but the main focus of previous studies has been the firm level impact of divestments. We take this discussion to the industry level and argue that divestments, on average, are carried out in industries, where opportunities...

Using a sample of equity carve-outs offered over the period of 1985-2015, we find out the time at which the market can know the effects of an equity carve-out on the wealth of existing shareholders. In equity carve-outs, the parent holds a significant fraction of the carved-out subsidiary....

The process firms use to choose their capital structures is explained by different corporate finance theories in which trade-off and pecking order are the two most popular hypotheses. Testing these two models will help to determine whether a target debt ratio exists, and if so, how rapidly firms...

In this paper we try to find out the impact of a carve-out on the standard deviation of earning per share (EPS) forecast (divergence of belief) and the number of analysts following the firm. We were expecting that the standard deviation of EPS forecast will decrease after the carve out as more...

Dividends, particularly of acquiring firms are influenced by several structural adjustments especially after mergers. Using the dividend clientele hypothesis, we hypothesize that acquirer dividend policy is more likely to change after the merger if dividend policies of firms involved in a...

Analysis of the causes of failure has often been shallow. This paper proposes an explanation as to why some mergers fail to achieve, based on the comparison between merging firms' specifics. We argue that cancellation may stem from dividend policy dissimilarity between the acquirer and the...

Various studies have analyzed the main determinants of payment method in M&As since the 1980s. We examine how relative the existing dividend policy of the acquirer affects the choice of the payment method. Based on the contingent-pricing effect of stock offer, we hypothesize that the likelihood...