This paper analyses both ultimate ownership and investors' protection in determining corporate value for a sample of firms from 12 Western European countries. The analysis is based on two data sets which consider the presence of an ultimate controller, as well as, the level of separation of cash...

Purpose – The purpose of this research is to expand on the available literature that suggests a positive effect of R&D activities and dividend payments on firms' value by considering three additional aspects that differ from previous research. Design/methodology/approach – The analysis of...

We analyze the impact of default probability in four leading Latin American stock markets: Argentina, Brazil, Chile, and Mexico. We find no positive default-risk premium except in the case of Brazil, and in fact we find a negative risk premium for Argentina and Mexico. The latter effect tends to...

type="main" xml:id="acfi12021-abs-0001" xml:lang="en" <title type="main">Abstract</title> <p>This paper analyzes the role of default risk in the momentum effect focusing on data from four developed European stock markets (France, Germany, Spain and the United Kingdom). Using a market-based measure of default risk, we show...</p>

In this paper we add a Black and Cox (1976) approach for debt and equity valuation to the common practice of reorganization leading to a more realistic setting. We introduce first passage models in order to allow for both reorganization as well as liquidation before maturity time. This paper...