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The Determinants of Corporate Liquidity: Theory and Evidence
We model the firm's decision to invest in liquid assets when external financing is costly. The optimal amount of liquidity is determined by a tradeoff between the low return earned on liquid assetsExpand
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The Impact of Information Technology Investment Announcements on the Market Value of the Firm
We provide empirical evidence on the effect of announcements of IT investments on the market value of the firm for a sample of 97 IT investments from the finance and manufacturing industries. Expand
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Growth Opportunities and the Choice of Leverage, Debt Maturity, and Covenants
We investigate the effect of growth opportunities in a firm's investment opportunity set on its joint choice of leverage, debt maturity, and covenants. Using a database that contains detailed debtExpand
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The Determinants of Corporate Debt Maturity Structure
The authors examine the empirical determinants of debt maturity structure using a maturity structure measure that incorporates detailed information about all of a firm's liabilities. They find thatExpand
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Real options, agency conflicts, and optimal capital structure
Abstract We examine the impact of a stockholder–bondholder conflict over the timing of the exercise of an investment option on firm value and corporate financial policy. We find that anExpand
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Interactions of corporate financing and investment decisions: The effects of agency conflicts
Abstract We examine interactions between flexible financing and investment decisions in a model with stockholder–bondholder conflicts over investment policy. We find that financial flexibilityExpand
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Bondholder Wealth Effects in Mergers and Acquisitions: New Evidence from the 1980s and 1990s
We examine the wealth effects of mergers and acquisitions on target and acquiring firm bondholders in the 1980s and 1990s. Consistent with a coinsurance effect, below investment grade target bondsExpand
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Cross Subsidies, External Financing Constraints, and the Contribution of the Internal Capital Market to Firm Value
This paper examines the link between the value of a diversified firm and the value of its internal capital. We construct measures of the value of internal capital market transactions based on theExpand
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Corporate Cash Holdings and CEO Compensation Incentives
We examine the effect of chief executive officer (CEO) compensation incentives on corporate cash holdings and the value of cash to better understand how compensation incentives designed to enhanceExpand
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Interactions of Corporate Financing and Investment Decisions: A Dynamic Framework
This article analyzes the interaction between a firm's dynamic investment, operating, and financing decisions in a model with operating adjustment and recapitalization costs. Using numericalExpand
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