We hypothesize that managers who receive high equity-based compensation have greater incentive to avoid ownership dilution by timing their seasoned equity offers to periods when investors temporarily overvalue their stock. We provide empirical support for this hypothesis using a measure of...

We analyze the changes in cash holding policies of S&P 500 firms before and after their inclusion in the index. One year after inclusion, the mean industry-adjusted cash holdings of these firms decline by nearly 32% from the year before inclusion. Several factors explain this decline. The...

Using a comprehensive sample of securities litigation, we examine the effect of financial fraud on the subsequent use of external financing. We find that firms with a recent history of securities litigation, particularly more severe litigation, are less likely to seek external debt and equity...