• Publications
  • Influence
Financial Constraints, Asset Tangibility, and Corporate Investment
When firms are able to pledge their assets as collateral, investment and borrowing become endogenous: pledgeable assets support more borrowings that in turn allow for further investment in pledgeableExpand
  • 1,116
  • 172
  • PDF
Powerful CEOs and Their Impact on Corporate Performance
Executives can only impact firm outcomes if they have influence over crucial decisions. Based on this idea we develop and test the hypothesis that firms whose CEOs have more decision-making powerExpand
  • 1,100
  • 129
  • PDF
Corporate Debt Maturity and the Real Effects of the 2007 Credit Crisis
We use the 2007 credit crisis to assess the effect of financial contracting on real corporate behavior. We identify heterogeneity in financial contracting at the onset of the crisis by exploringExpand
  • 495
  • 81
  • PDF
A Theory of Pyramidal Ownership and Family Business Groups
We provide a rationale for pyramidal ownership (the control of a firm through a chain of ownership relations) that departs from the traditional argument that pyramids arise to separate cash flow fromExpand
  • 671
  • 63
  • PDF
Understanding the Relationship between Founder-CEOs and Firm Performance
We use instrumental variables methods to disentangle the effect of founder–CEOs on performance from the effect of performance on founder–CEO status. Our instruments for founder–CEO status are theExpand
  • 420
  • 51
  • PDF
The Risk-Adjusted Cost of Financial Distress
In this paper we argue that risk-adjustment matters for the valuation of financial distress costs, since financial distress is more likely to happen in bad times. Systematic distress risk impliesExpand
  • 368
  • 48
  • PDF
Aggregate Risk and the Choice between Cash and Lines of Credit
We model corporate liquidity policy and show that aggregate risk exposure is a key determinant of how firms choose between cash and bank credit lines. Banks create liquidity for firms by poolingExpand
  • 279
  • 29
  • PDF
The Structure and Formation of Business Groups: Evidence from Korean Chaebols
In this paper we study the determinants of business groups' ownership structure using unique panel data on Korean chaebols. In particular, we attempt to understand how pyramids form over time. WeExpand
  • 216
  • 29
  • PDF
Should Business Groups Be Dismantled? The Equilibrium Costs of Efficient Internal Capital Markets
We analyze the relationship between conglomerates' internal capital markets and the efficiency of economy-wide capital allocation, and identify a novel cost of conglomeration that arises from anExpand
  • 188
  • 24
  • PDF
Internal Capital Markets in Business Groups: Evidence from the Asian Financial Crisis
This paper examines capital reallocation among firms in Korean business groups (chaebol) in the aftermath of the 1997 Asian financial crisis, and the consequences of this capital reallocation forExpand
  • 135
  • 20
  • PDF