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A Model of Shareholder Litigation as a Determinant of a Firm's Financial Policies

Talijan, Vuk - 2017

performance wanes notwithstanding, shareholders then file a lawsuit against their entrepreneur. When cash is limited, debt may act … cash, investment, and debt …

Persistent link: https://www.econbiz.de/10012968647

Outliers in Finance Research

Adams, John C.; Hayunga, Darren K.; Verardi, Vincenzo - 2021

Articles in the top finance journals largely ignore the potential of outlier-induced bias in empirical research. When finance researchers do address outliers they use techniques that tend to cause additional problems. We illustrate the problems via simulations as well as replications of studies...

Persistent link: https://www.econbiz.de/10013228781

Corporate Governance and Financial Strategy

Bender, Ruth - 2013

Financial strategy is about how companies raise funds and manage them within their organizations. Corporate governance is relevant to both of these aspects, and an understanding of corporate governance is vital for an appreciation of corporate finance. This chapter from Corporate Financial...

Persistent link: https://www.econbiz.de/10013082113

Transparency, Tax Pressure and Access to Finance

Ellul, Andrew - 2018

tax burden. We study this trade-off in a model with distortionary taxes and endogenous rationing of external finance. The …, especially in firms that depend more on external finance, and are negatively correlated with tax pressure. Second, transparency … is negatively correlated with tax pressure, particularly in sectors where firms are less dependent on external finance …

Persistent link: https://www.econbiz.de/10012940504

The Pitfalls of Pledgeable Cash Flows : Soft Budget Constraints, Zombie Lending and Under-Investment

Bernhardt, Dan; Koufopoulos, Kostas; Trigilia, Giulio - 2021

We show that when borrowers are privately informed about their creditworthiness and lenders have a soft budget constraint, efficient investment requires a limit on the fraction of a firm’s cash flows that can be pledged to outsiders. That is, pledgeability should neither be too low nor too...

Persistent link: https://www.econbiz.de/10013240884

Finance Methodology of Free Cash Flow

Yaari, Uzi - 2016

Free Cash Flow (FCF) was adopted in the late 1980s as a financial tool to evaluate the firm and its individual projects. We question the procedure of calculating the FCF where a significant portion of Current Liabilities is offset against Current Assets, thereby creating the hybrid asset Net...

Persistent link: https://www.econbiz.de/10012996576

Shapeshifting Corporations

Partnoy, Frank - 2010

and use of variable interest entities, structured investment vehicles, collateralized debt obligations, and related forms …

Persistent link: https://www.econbiz.de/10013148211

The effect of financial leverage on firm profitability and working capital management in the Asia- Pacific Region

Deshpande, Anya - In: Central European review of economics and management : CEREM 7 (2023) 4, pp. 43-71

Aim: The main aim of this article is to examine the impact of financial leverage on firm profitability and working … leverage has a negative relationship with firm profitability and a positive relationship with working capital levels. The study … emphasizes the complex nature of financial leverage as a double-edged sword, capable of shaping the trajectories of APAC firms …

Persistent link: https://www.econbiz.de/10015323392

Chapter 4. Financing of Corporations

Myers, Stewart C. - 2003

firms balance the tax advantages of borrowing against the costs of financial distress; (3) agency theories, in which …

Persistent link: https://www.econbiz.de/10014023872

Ordering the preference hierarchies for internal finance, bank loans, bond and share issues

Haan, Leo de; Hinloopen, Jeroen - 2002

We estimate the incremental financing decision for a sample of some 150Dutch companies for the years 1984 through 1997, thereby distinguishinginternal finance and three types of external finance: bank borrowing, bondissues and share issues. First, we estimate a multinomial logit model...

Persistent link: https://www.econbiz.de/10011327550