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1980 Full-Text Articles 1797 Authors 762614 Downloads 113 Institutions

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1980 full-text articles. Page 1 of 59.

Ceo Compensation And Risk-Taking At Financial Firms: Evidence From U.S. Federal Loan Assistance, Amar Gande, Swami Kalpathy 2017 Southern Methodist University

Ceo Compensation And Risk-Taking At Financial Firms: Evidence From U.S. Federal Loan Assistance, Amar Gande, Swami Kalpathy

Amar Gande

We examine whether risk-taking among the largest financial firms in the U.S. is related to CEO equity incentives before the 2008 financial crisis.  Using data on U.S. Federal Reserve emergency loans provided to these firms, we find that the amount of emergency loans and total days the loans are outstanding are increasing in pre-crisis CEO risk-taking incentives – “vega”.  Our results are robust to accounting for endogeneity in CEO equity incentives and selection of financial firms into emergency loan programs.  We also rule out the possibility that our results are driven by a bank’s funding base, bank complexity ...


R&D Sensitivity To Asset Sale Proceeds: New Evidence On Financing Constraints And Intangible Investment, Ginka Borisova, James R. Brown 2017 Iowa State University

R&D Sensitivity To Asset Sale Proceeds: New Evidence On Financing Constraints And Intangible Investment, Ginka Borisova, James R. Brown

James R. Brown

We examine the intersection between corporate divestitures of tangible assets and investment in intangible capital (R&D) to provide new tests for the impact financing constraints have on real activity. A positive R&D sensitivity to asset sale proceeds indicates binding financing constraints since cash inflows from tangible asset sales are negatively correlated with productivity shocks and not otherwise connected to intangible investment via non-financial channels. Using a variety of estimation approaches, we document a strong, positive link between cash inflows from fixed asset sales and corporate R&D investment, but only among firms most likely facing binding financing constraints ...


Access To Private Equity And Real Firm Activity: Evidence From Pipes, James R. Brown, Ioannis V. Floros 2017 Iowa State University

Access To Private Equity And Real Firm Activity: Evidence From Pipes, James R. Brown, Ioannis V. Floros

James R. Brown

No abstract provided.


Law, Stock Markets, And Innovation, James R. Brown, Gustav Martinsson, Bruce C. Petersen 2017 Iowa State University

Law, Stock Markets, And Innovation, James R. Brown, Gustav Martinsson, Bruce C. Petersen

James R. Brown

We study a broad sample of firms across 32 countries and find that strong shareholder protections and better access to stock market financing lead to substantially higher long-run rates of R&D investment, particularly in small firms, but are unimportant for fixed capital investment. Credit market development has a modest impact on fixed investment but no impact on R&D. These findings connect law and stock markets with innovative activities key to economic growth, and show that legal rules and financial developments affecting the availability of external equity financing are particularly important for risky, intangible investments not easily financed with ...


Do Financing Constraints Matter For R&D?, James R. Brown, Gustav Martinsson, Bruce C. Petersen 2017 Iowa State University

Do Financing Constraints Matter For R&D?, James R. Brown, Gustav Martinsson, Bruce C. Petersen

James R. Brown

Information problems and lack of collateral value should make R&D more susceptible to financing frictions than other investments, yet existing evidence on whether financing constraints limit R&D is decidedly mixed, particularly in the studies of non-U.S. firms. We study a large sample of European firms and also find little evidence of binding finance constraints when we estimate standard investment-cash flow regressions. However, we find strong evidence that the availability of finance matters for R&D once we directly control for: (i) firm efforts to smooth R&D with cash reserves and (ii) firm use of external equity ...


Profitability Ratios In The Early Stages Of A Startup, Erkki K. Laitinen 2017 University of Vaasa

Profitability Ratios In The Early Stages Of A Startup, Erkki K. Laitinen

The Journal of Entrepreneurial Finance

This study develops a mathematical framework to analyze the time series of profitability ratios in the early stages of a startup. It is assumed that the expenditure of the startup grows at a steady rate and generates a proportionally identical flow of revenue in each period. The profitability in terms of the internal rate of return (IRR) and the lag structure of revenue flows are assumed constant over time in describing the adjustment process towards the steady state. The startup is assumed to expense in each period a constant part of periodic expenditure and beginning-of-the-period assets. The adjustment processes of ...


Protecting The Viability Of The Small Donor In Modern Elections, Ben Miller 2017 Fried Frank, Harris, Shriver & Jacobson LLP

Protecting The Viability Of The Small Donor In Modern Elections, Ben Miller

Arkansas Law Review

Campaign finance reform stands as one of the most important issues in today’s modern elections. From national to municipal contests, the influx of large donations places wealthy individuals—and interests—at odds with the average voter. Over the years, volumes of academic and legislative reforms have been proposed that encompass a wide range of electoral subject matter. From Citizens United to Federal Elections Commission (FEC) control mechanisms, solutions on how to change our campaign finance regulatory regime cover a large and diverse area of law and policy. However, the central theme throughout these reforms is maximizing transparency and curbing ...


The Modigliani-Miller Theorem At 60: The Long-Overlooked Legal Applications Of Finance’S Foundational Theorem, Michael S. Knoll 2017 University of Pennsylvania Law School

The Modigliani-Miller Theorem At 60: The Long-Overlooked Legal Applications Of Finance’S Foundational Theorem, Michael S. Knoll

Faculty Scholarship

2018 marks the 60th anniversary of the publication of Franco Modigliani and Merton Miller’s The Cost of Capital, Corporation Finance, and the Theory of Investment. Widely hailed as the foundation of modern finance, their article, which purports to demonstrate that a firm’s value is independent of its capital structure, is little known by lawyers, including legal academics. That is unfortunate because the Modigliani-Miller capital structure irrelevancy proposition (when inverted) provides a framework that can be extremely useful to legal academics, practicing attorneys and judges.


Making Financial Disclosure More Readable, Clarence GOH, Poh Sun SEOW, Gary PAN 2017 Singapore Management University

Making Financial Disclosure More Readable, Clarence Goh, Poh Sun Seow, Gary Pan

Research Collection School Of Accountancy

There are many benefits tohaving disclosures written in plain English. Investors would be more likely tounderstand the disclosures and to make informed judgments. Investment analystswould also be able to make more timely and accurate recommendations to theirclients if they can understand such disclosures more quickly and easily


Inside Brokers, Frank Weikai LI, Abhiroop MUKHERJEE, Rik SEN 2017 Singapore Management University

Inside Brokers, Frank Weikai Li, Abhiroop Mukherjee, Rik Sen

Research Collection Lee Kong Chian School Of Business

We identify the broker each corporate insider trades through, and show that analystsand mutual fund managers affiliated with such “inside brokers” retain a substantialinformation advantage on the insider’s firm, even after these trades are disclosed.Affiliated analysts issue 10–20% more accurate earnings forecasts, and affiliated fundstrade the insider’s stock much more profitably than their peers, following insider tradesthrough their brokerage. Our results challenge the prevalent perception that informationasymmetry arising from insider trading is acute only before trade disclosure, andsuggest that brokers facilitating these trades are in a unique position to exploit suchan asymmetry.


Amending Corporate Charters And Bylaws, Albert H. Choi, Geeyoung Min 2017 University of Pennsylvania Law School

Amending Corporate Charters And Bylaws, Albert H. Choi, Geeyoung Min

Faculty Scholarship

Recently, courts have embraced the contractarian theory that corporate charters and bylaws constitute a “contract” between the shareholders and the corporation and have been more willing to uphold bylaws unilaterally adopted by the directors. This paper examines the contractarian theory by drawing a parallel between amending charters and bylaws, on the one hand, and amending contracts, on the other. In particular, the paper compares the right to unilaterally amend corporate bylaws with the right to unilaterally modify contract terms, and highlights how contract law imposes various limitations on the modifying party’s discretion. More generally, when the relationship of contracting ...


Credit Risk And Corporate Governance, Olivier Mugisho Mudekereza 2017 CUNY Hunter College

Credit Risk And Corporate Governance, Olivier Mugisho Mudekereza

School of Arts & Sciences Theses

Is the executive’s compensation structure influenced by the credit rating assigned to his company? I analyze a panel of U.S. public firms using the random-effects and fixed-effects estimations. Compared to firms with lower credit risk, I find that firms facing higher probability of default provide more incentives for their CEOs.


The Tax Treatment Of Tokens: What Does It Betoken?, David J. Shakow 2017 University of Pennsylvania Law School

The Tax Treatment Of Tokens: What Does It Betoken?, David J. Shakow

Faculty Scholarship

Digital tokens have been used to raise substantial amounts of money. But little attention has been paid to the tax consequences surrounding their issuance and sale. There are significant potential tax liabilities lurking in the use of digital tokens. But, because of the anonymity inherent in the blockchain structures used for the issuance of tokens and payments for them, there is a significant question as to whether those tax liabilities will ever be collected.


A Haven By Any Other Name: The Role Of Tax Holidays In Corporate Tax Avoidance, Travis K. CHOW, Jeffrey L. HOOPES, Edward L. MAYDEW 2017 Singapore Management University

A Haven By Any Other Name: The Role Of Tax Holidays In Corporate Tax Avoidance, Travis K. Chow, Jeffrey L. Hoopes, Edward L. Maydew

Research Collection School Of Accountancy

We undertake the first large-sample examination of foreign tax holiday participation among U.S.corporations. Tax holidays are temporary reductions of tax granted by governments, usually inconjunction with new business investment. We find that foreign tax holidays are economicallyimportant phenomena and participation in them has increased over time. The percentage ofpublicly-traded U.S. firms reporting participation in at least one foreign tax holiday increasedmore than five-fold since the beginning of our sample in 1995. We estimate that the averageforeign tax holiday reduces the firm’s effective tax rate by 4.5 percentage points during theholiday period, which is over four ...


Analyst Effort Allocation And Firms' Information Environment, Rong WANG, Jarrad HARFORD, Feng JIANG, Fei XIE 2017 Singapore Management University

Analyst Effort Allocation And Firms' Information Environment, Rong Wang, Jarrad Harford, Feng Jiang, Fei Xie

Research Collection Lee Kong Chian School Of Business

We show that a firm’s information environment is significantly impacted by the characteristics of the other firms its analysts cover. Analysts strategically allocate effort among portfolio firms by devoting more effort to firms that are relatively more important for their career concerns. Specifically, controlling for analyst and firm characteristics, we find that within each analyst’s portfolio, firms ranked relatively higher based on market capitalization, trading volume, or institutional ownership receive more accurate, frequent, and informative earnings forecast revisions and stock recommendation changes that contain greater information content from that analyst. Firms’ relative rank across analysts varies widely, so ...


Hedge Fund Performance And Derivative Hedging, Yongjia Li 2017 University of Arkansas, Fayetteville

Hedge Fund Performance And Derivative Hedging, Yongjia Li

Theses and Dissertations

This dissertation is comprised of three essays which focus on hedge fund performance and derivative hedging. The first essay uses ETF returns as proxies for tradable risk factors in hedge fund performance evaluation and identifies contemporaneously relevant risk factors from the entire universe of ETFs. The model provides more informative estimates of alpha and beta coefficients for predicting hedge fund out-of-sample performance compared with other widely used hedge fund factor models. Portfolios of top alpha hedge funds selected by the model generate statistically significant out-of-sample performance that is substantially higher compared with portfolios selected by other models. In addition, the ...


Ceo Political Ideology And Mergers And Acquisitions Decisions, Ahmed M. Elnahas, Kim Dongnyoung 2017 Eastern Kentucky University

Ceo Political Ideology And Mergers And Acquisitions Decisions, Ahmed M. Elnahas, Kim Dongnyoung

EKU Faculty and Staff Scholarship

We examine the relation between CEOs political ideology and their firms' investment decisions, particularly their M&A decisions. Employing individual financial contributions data for the period from 1993 to 2006, we find that firm's investment decisions vary with CEO's political ideology. Our evidence indicates that Republican CEOs are less likely to engage in M&A activities. When they do undertake acquisitions, they are more likely to use cash as the method of payment, and their targets are more likely to be public firms and to be from the same industry. Further, Republican CEOs tend to avoid high information ...


Entrepreneurship Vs Paid Employment: Multiple Skills And Financing, Felipe Balmaceda Assoc Prof. 2017 Diego Portales University

Entrepreneurship Vs Paid Employment: Multiple Skills And Financing, Felipe Balmaceda Assoc Prof.

Felipe Balmaceda

We present an occupational choice model with risk-averse agents who are heterogeneous in terms of skills and wealth in a setting with financial frictions.  We show that high-income individuals and middle-income individuals endowed with a balanced portfolio of skills upgrade their skills so the resulting portfolio of skills is more balanced and choose entrepreneurship, while middle-income individuals endowed with an unbalanced portfolio of skills and low-income individuals specialize in the skill in which they have an absolute advantage and choose paid employment. Deeper financial development, a more balanced portfolio of skills, lower entrepreneurial risk and a higher liquidation value result ...


Do High Ceo Pay Ratios Destroy Firm Value?, Qiang CHENG, Tharindra RANASINGHE, Sha ZHAO 2017 Singapore Management University

Do High Ceo Pay Ratios Destroy Firm Value?, Qiang Cheng, Tharindra Ranasinghe, Sha Zhao

Research Collection School Of Accountancy

There is growing public concern over the rapid growth in CEO pay relative to average worker pay (CEO pay ratio). Critics contend that high CEO pay ratios could destroy firm value by damaging employee morale and/or signal CEO rent extraction. In this paper, we use a proprietary dataset to examine the relationship between CEO pay ratio and firm value/performance. Contrary to critics’ arguments, we find that industry-adjusted CEO pay ratios are positively associated with both firm value and performance. We also find that high CEO pay ratios are associated with higher quality acquisitions and stronger CEO turnover-performance sensitivity ...


Director Tenure Diversity And Board Monitoring Effectiveness, Na LI, Aida Sijamic WAHID 2017 Singapore Management University

Director Tenure Diversity And Board Monitoring Effectiveness, Na Li, Aida Sijamic Wahid

Research Collection School Of Accountancy

This study examines the impact of director tenure diversity on board effectiveness. We findthat tenure-diverse boards exhibit significantly higher CEO performance-turnoversensitivity and that firms with tenure-diverse audit committees are less likely to experienceaccounting restatements. Furthermore, we document that tenure-diverse compensationcommittees also award less excess compensation and are less likely toovercompensate. Even though tenure-diverse boards seem to exhibit superior monitoringperformance, there is limited evidence that their firms exhibit superior financialperformance. The findings suggest that recent calls for board renewal, to the extent that it would increase tenure diversity rather than just decrease average board tenure, may helpenhance board monitoring.


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