Showing 1 - 10 of 16
The purpose of this study is to examine the impact of the choice of cut-off points, sampling procedures, and business cycles on the forecasting accuracy of bankruptcy prediction models. A misclassification can result in an erroneous prediction resulting in prohibitive costs to firms, investors,...
Persistent link: https://www.econbiz.de/10011151409
This paper investigates the effect of corporate diversification on the pricing of bank-loan contracts. We find that diversified firms have significantly lower loan rates than comparable focused firms, and we find no evidence that diversified firms are subject to more restrictive non-price...
Persistent link: https://www.econbiz.de/10011264237
This paper investigates the effects of managerial mergers- and acquisitions-related investment strategies on the exit risk of firms. Using a sample of hyperactive bidders, I show that managerial excessive acquisitiveness can precipitate firm exit. Overbidding is associated with weak corporate...
Persistent link: https://www.econbiz.de/10010868881
Why do some firms grow faster than others? Although various observed and unobserved aspects of firms have been suggested as potential drivers of firm heterogeneity, economists disagree sharply on the role of financial structure in influencing firm growth. In this paper, I use a sample of quoted...
Persistent link: https://www.econbiz.de/10008864583
We investigate empirically a market-based explanation for the rise in recent years in external CEO hiring and compensation and find, consistent with the market-based theory, that firms in industries relying on general managerial skills are more likely to hire CEOs externally than firms in...
Persistent link: https://www.econbiz.de/10010666290
This paper investigates the effect of organizational capital, typified by various management practices within a firm, on the cost of external debt financing. Using a sample of medium-sized manufacturing firms in the US, we find that better management practices enhance a firm’s external...
Persistent link: https://www.econbiz.de/10010608683
type="main" <p>This paper examines the influence of organizational capital, as evident in management quality practices, on the response of firm investment to internal cash flows. We provide novel and strong evidence that investment sensitivity to internal cash flows decreases in the presence of...</p>
Persistent link: https://www.econbiz.de/10011085991
Using a large sample of 3,040 U.S. firms and 16,606 firm-year observations over the 1991-2010 period, we find strong evidence that firm internationalization is positively related to the firm’s corporate social responsibility (CSR) rating. This finding persists when we use alternative...
Persistent link: https://www.econbiz.de/10010900798
This paper investigates the governance role of multiple large shareholders (MLS, henceforth), as evidenced by their impact on the valuation of cash holdings. For a sample of 2,723 firms from 22 countries, we find that the presence of MLS enhances the valuation of firms’ cash holdings. In...
Persistent link: https://www.econbiz.de/10010867170
This study provides novel evidence of the impact of corporate social responsibility (CSR) on investment sensitivity to cash flows. We posit that CSR affects investment–cash flow sensitivity (ICFS) through information asymmetry and agency costs, commonly viewed as the two channels through which...
Persistent link: https://www.econbiz.de/10010989764