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Although recent studies provide convincing evidence that firms manage earnings to achieve certain reporting objectives, there is still little evidence on what steps firms take to manage their earnings. This paper presents evidence as to which components firms use in order to manage bottom-line, reported earnings. Specifically, we identify a set of firms(More)
Although the resource-based view (RBV) is one of the most popular and fruitful areas of strategy research, it often perplexes scholars from other disciplines. Also, it is unclear whether strategy scholars themselves agree on the RBV's basic issues and premises. To clarify the contribution of the RBV, in this paper we elaborate its basic tenets and relate(More)
Grocery retailers increasingly view other retail formats, particularly mass merchandisers, as a competitive threat. We present an empirical study of household shopping and packaged goods spending across retail formats — grocery stores, mass merchandisers, and drug stores. Our study considers competition between these formats and explores how retailer(More)
We thank Peter MacKay, Rex Thompson and seminar participants at the University of Texas at Dallas for many helpful comments and suggestions. Abstract We examine the impact of stockholder-bondholder conflicts over the exercise decision of a firm's investment option on corporate financing decisions. We find that an equity-maximizing firm exercises the option(More)
We examine interactions between financing and investment decisions in a setting where equityholders make self-interested investment decisions. The firm has the flexibility to exercise and reverse the exercise of a growth option whose underlying asset may be correlated with assets-in-place. The firm's menu of financing decisions includes the choice of debt(More)
We consider the impact of sequential investment and active management on the value of a portfolio of real options. The options are assumed to be interdependent, in that exercise of any one is assumed to produce, in addition to some intrinsic value based on an underlying asset, further information regarding the values of other options based on related(More)
We examine how intra-industry variation in financial structure relates to industry factors and whether real and financial decisions are jointly determined within competitive industries. We find that industry and group factors beyond standard industry fixed effects are also important to firm financial structure. Firm financial leverage, capital intensity,(More)
I gratefully acknowledge the insightful comments and suggestions from Kenneth Corts (the Editor) and two anonymous referees that greatly strengthened the paper. I thank very helpful comments. I also thank the sta¤ at the Wharton Research Data Services (WRDS) for granting me a special permission to test the spider programs on their server. All errors are(More)
This paper suggests a new way of predicting the likelihood of a corporate bond being callable. We compute the probability that a bond, if callable, would actually be called within a certain period. We also hypothesize a positive relationship between this probability and the likelihood of the bond being issued with a call feature. Comparative static results(More)
Recent studies of store choice assume that shoppers develop shopping lists a priori, then visit the store that allows them to buy needed items at the lowest expected cost. These studies implicitly assume that shoppers purchase their entire list at a single store. However, many households shop at multiple stores without any intervening consumption—a behavior(More)