November 2024
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1 Citation
The Journal of Law and Economics
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November 2024
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1 Citation
The Journal of Law and Economics
February 2024
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6 Reads
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1 Citation
Journal of Corporate Finance
January 2024
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7 Citations
Critical Finance Review
November 2023
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17 Reads
Journal of Risk and Financial Management
This paper studies the effect of short selling on corporate managers from 2002 through 2010. We examine how the exemption of short-sale uptick tests due to the Regulation SHO pilot program affects managers’ decisions to abandon value-reducing acquisition attempts. We find that when deciding whether to abandon value-reducing acquisition attempts during the program, managers of pilot firms, whose stocks are less subject to short-selling impediments, are more sensitive to stock price changes than managers of nonpilot firms. We find no difference in managers’ sensitivity prior to nor post SHO. These results indicate that, despite their dislike of short sellers, managers believe that the level of informativeness from capital markets is superior when short sellers are less impeded.
April 2023
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5 Reads
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4 Citations
Journal of Applied Corporate Finance
April 2023
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4 Reads
Journal of Applied Corporate Finance
April 2023
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1 Read
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1 Citation
Journal of Applied Corporate Finance
April 2023
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6 Reads
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3 Citations
Journal of Applied Corporate Finance
April 2023
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2 Reads
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2 Citations
Journal of Applied Corporate Finance
April 2023
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1 Read
Journal of Applied Corporate Finance
... Marginal value of cash holdings. We follow Halford et al. (2020) to examine the value relevance vis-à-vis the potential evidence for agency motives of cash holdings by single CEOs. 12 We argue that the stock market would value higher cash holdings by single CEOs less (more) higher cash holdings is driven by the agency (precautionary) motive. ...
January 2024
Critical Finance Review
... Takeovers exist in numerous forms and contexts, whether as a means to reduce risk and uncertainty, as a way for executives to engage in empire building, or occurring within one country or across borders (Bris and Cabolis 2008;Liu and McConnell 2015;Nguyen and Phan 2017). These, generally, irreversible firm-altering strategic moves (Ebina et al. 2022) are fraught with challenge, particularly when a firm attempts to acquire in a different country, creating complexity (Sun et al. 2021;Yiu et al. 2023). ...
October 2015
Journal of Applied Corporate Finance
... The minimum board independence was 45.45%, with 91.67% being the maximum. A board with the majority of board members being independent has the capacity to create greater value for shareholders under certain circumstances as well as enhancing the company's reputation (Dahya et al. 2023). ...
April 2023
Journal of Applied Corporate Finance
... These institutions provide impetus for a hostile takeover under the assumption that it adds value to stakeholders such as shareholders, but they can only be conducive to a hostile takeover if actors promote shareholder rights (Liu & McConnell, 2015). ...
April 2023
Journal of Applied Corporate Finance
... Our analysis is applicable to other forms of debt, such as income bonds. It may also help to explain why income bonds failed their promise--see McConnell and Schlarbaum (1986). The variable to which the promised payment of an income bond is tied is not entirely exogenous. ...
April 2023
Journal of Applied Corporate Finance
... We also examine the importance of holdout problems by examining the relation between reliance on loans held by CLOs and the likelihood of a prepackaged bankruptcy versus an out of court restructuring. A prepackaged bankruptcy or "prepack" is generally considered a tool for dealing with holdouts (McConnell and Servaes, 1991;Tashjian, Lease, and McConnell, 1996), because, unlike traditional Chapter 11, "prepacks" are typically not used to restructure operations, but rather they are used to put a prearranged plan into effect. Thus, if loans held by CLOs are more difficult to restructure due to more severe holdout problems, then we would expect the likelihood of a "prepack" versus an out of court restructuring to be higher when the firm relies heavily on loans held by CLOs. ...
April 2023
Journal of Applied Corporate Finance
... Second, this study extends the literature that connects media partisanship and financial decisions. Baloria and Heese (2018) and Knill et al (2021) examine the ways in which corporate managers' decisions are influenced by media partisanship. Our study examines a way in which investors' decisions can be influenced by media partisanship. ...
August 2021
Journal of Financial and Quantitative Analysis
... Studies by Blanes i Vidal, Draca, and Fons-Rosen (2012) and Bertrand, Bombardini and Trebbi (2014) also find evidence consistent with the quid pro quo hypothesis in the context of revolvingdoor lobbyists. A larger literature on corporate political connections documents systematic evidence consistent with the quid pro quo hypothesis both internationally as well as in the U.S. (see, e.g., Sapienza (2004), Khwaja and Mian (2005), Faccio, Masulis, and McConnell (2005), Bunkanwanicha and Wiwattanakantang (2009), and Goldman, Rocholl, and So (2013)). ...
January 2007
The Journal of Finance
... Family business studies have attracted the interest of many researchers [1][2][3][4] as family firms play a crucial role in promoting sustainable economic development, emerging innovation, and stable employment [5]. The sustainable development of family businesses is momentous not only for themselves but also for the advancement of the entire economy. ...
April 2022
Journal of Financial and Quantitative Analysis
... Recent work adds institutional reforms (La Porta, Lopez-de-Silanes, and Shleifer (2008)), financial liberalizations (Henry (2007)), and market expansions (Aw, Roberts, and Xu (2011)) to the roster of productivity-enhancing shocks. Work in growth theory (Aghion and Howitt (1992)) and finance (Fogel, Morck, and Yeung (2008), Faccio and McConnell (2020)) associates increased productivity with creative destruction (Schumpeter (1911)), wherein innovative firms partially or completely displace established firms. ...
Reference:
Idiosyncrasy as a Leading Indicator
January 2020
SSRN Electronic Journal