Similar Search Results

The role of dynamic renegotiation and asymmetric information in financial contracting

Roberts, Michael R. - In: Journal of Financial Economics 116 (2015) 1, pp. 61-81

Using data from Securities and Exchange Commission filings, I show that the typical bank loan is renegotiated five times, or every nine months. The pricing, maturity, amount, and covenants are all significantly modified during each renegotiation, whose timing is governed by the financial health...

Persistent link: https://www.econbiz.de/10011263119

The costs of shareholder activism: Evidence from a sequential decision model

Gantchev, Nickolay - In: Journal of Financial Economics 107 (2013) 3, pp. 610-631

This paper provides benchmarks for monitoring costs and evaluates the net returns to shareholder activism. I model activism as a sequential decision process consisting of demand negotiations, board representation, and proxy contest and estimate the costs of each activism stage. A campaign ending...

Persistent link: https://www.econbiz.de/10010635953

Are hedge fund managers systematically misreporting? Or not?

Jorion, Philippe; Schwarz, Christopher - In: Journal of Financial Economics 111 (2014) 2, pp. 311-327

A discontinuity, or kink, at zero in the hedge fund net return distribution has been interpreted as evidence of managers manipulating returns to avoid showing small losses. Instead, we propose alternative explanations for this phenomenon. In particular, we show that incentive fees can...

Persistent link: https://www.econbiz.de/10010737661

Trust and delegation

Brown, Stephen; Goetzmann, William; Liang, Bing; … - In: Journal of Financial Economics 103 (2012) 2, pp. 221-234

This paper studies operational risk in the hedge fund industry using due diligence reports. Many funds suffer from operational problems, including limited disclosure of legal and regulatory issues. We use direct evidence of inadequate or failed internal processes to derive a canonical...

Persistent link: https://www.econbiz.de/10010576086

Syndicated loan spreads and the composition of the syndicate

Lim, Jongha; Minton, Bernadette A.; Weisbach, Michael S. - In: Journal of Financial Economics 111 (2014) 1, pp. 45-69

During the past decade, non-bank institutional investors are increasingly taking larger roles in the corporate lending than they historically have played. These non-bank institutional lenders typically have higher required rates of return than banks, but invest in the same loan facilities. In a...

Persistent link: https://www.econbiz.de/10010718734

Overcoming limits of arbitrage: Theory and evidence

Hombert, Johan; Thesmar, David - In: Journal of Financial Economics 111 (2014) 1, pp. 26-44

Limits to arbitrage arise because financial intermediaries may face funding constraints when mispricing worsens. Using a model with limits to arbitrage, where we allow arbitrageurs to secure capital even in case of underperformance, we show that arbitrageurs that are more protected from...

Persistent link: https://www.econbiz.de/10010718736

Alliances and corporate governance

Bodnaruk, Andriy; Massa, Massimo; Simonov, Andrei - In: Journal of Financial Economics 107 (2013) 3, pp. 671-693

We study the link between a firm's quality of governance and its alliance activity. We consider alliances as a … anticipate ex post commitment problems and resolve them. The role of governance is particularly important when the commitment … product market competition). Governance also mitigates agency issues between alliance partners; dominant alliance partners …

Persistent link: https://www.econbiz.de/10011039210

Supply uncertainty of the bond investor base and the leverage of the firm

Massa, Massimo; Yasuda, Ayako; Zhang, Lei - In: Journal of Financial Economics 110 (2013) 1, pp. 185-214

We examine the effect of the bond capital supply uncertainty of institutional investors (e.g., mutual bond funds and insurance companies) on the leverage of the firm using a novel data set. Our main finding is that the supply uncertainty of the firm's bond investor base — measured as (i) the...

Persistent link: https://www.econbiz.de/10011039228

The disintermediation of financial markets: Direct investing in private equity

Fang, Lily; Ivashina, Victoria; Lerner, Josh - In: Journal of Financial Economics 116 (2015) 1, pp. 160-178

We examine 20 years of direct private equity investments by seven large institutions. These direct investments perform better than public market indices, especially buyout investments and those made in the 1990s. Outperformance by the direct investments, however, relative to the corresponding...

Persistent link: https://www.econbiz.de/10011263122

Scale and skill in active management

Pástor, Ľuboš; Stambaugh, Robert F.; Taylor, Lucian A. - In: Journal of Financial Economics 116 (2015) 1, pp. 23-45

We empirically analyze the nature of returns to scale in active mutual fund management. We find strong evidence of decreasing returns at the industry level. As the size of the active mutual fund industry increases, a fund׳s ability to outperform passive benchmarks declines. At the fund level,...

Persistent link: https://www.econbiz.de/10011263125

1
2
3
4
5
6
7
8
9
10
Next
Last