Showing 1 - 10 of 2,170
U.S. firms currently hold a $2trillion cash stockpile. We examine if cash stockpiles fuel cash acquisitions by studying … that the link between cash stockpiles and cash acquisitions is not obvious. …
Persistent link: https://www.econbiz.de/10010719623
This study examines the relationship between corporate managers' political ideology and corporate leverage policies conditional on investor sentiment. Based on a minimum of 21,884 observations over the 1992-2008 period, the authors show that Republican managers significantly reduce leverage...
Persistent link: https://www.econbiz.de/10013252787
We administer psychometric tests to senior executives to obtain evidence on their underlying psychological traits and attitudes. We find US CEOs differ significantly from non-US CEOs in terms of their underlying attitudes. In addition, we find that CEOs are significantly more optimistic and...
Persistent link: https://www.econbiz.de/10010665550
, we find that the industry distribution is significantly different for failure and acquisitions. This calls for some kind …
Persistent link: https://www.econbiz.de/10011446202
This paper introduces the Journal of Multinational Financial Management's special issue on financial management in China. We provide a brief literature review of China's financial management policies, practices, and recent research findings, and describe how papers published in this special...
Persistent link: https://www.econbiz.de/10010664205
We survey 79 private equity (PE) investors with combined assets under management of more than $750 billion about their practices in firm valuation, capital structure, governance, and value creation. Investors rely primarily on internal rates of return and multiples to evaluate investments. Their...
Persistent link: https://www.econbiz.de/10012973133
We examine cash holdings and leverage levels of German listed (non-financial and non-utility) firms. We document a secular increase in cash ratios over the last twenty years (1992–2011), reducing the net debt book leverage ratio for the average sample firm close to zero. Using pre-diction...
Persistent link: https://www.econbiz.de/10013033638
expenditures and cash acquisitions. In the cross section, credit rating mistakes affect financially constrained firms the most …
Persistent link: https://www.econbiz.de/10013036088
Stronger creditor rights reduce credit costs and thus may allow firms to increase leverage and investments, but also increase distress costs and thus may prompt firms to lower leverage and undertake risk-reducing but unprofitable investments. Using a German bankruptcy law reform, on average, we...
Persistent link: https://www.econbiz.de/10013222495
Leveraged buyouts allow for a separate identification of sponsor reputation and underlying firm quality and their effects on capital structure choices. In 616 U.S. LBOs for which we can reconstruct financing activity, we find that the average LBO issues an average of 1.16 additional debt...
Persistent link: https://www.econbiz.de/10013241555