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Corporate Cash Reserves and Acquisitions
The acquisition behavior of cash-rich firms is examined for evidence of free cash flow-related behavior. A model of cash management is developed and used to identify a sample of cash-rich firms. TheExpand
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What drives merger waves
Aggregate merger waves could be due to market timing or to clustering of industry shocks for which mergers facilitate change to the new environment. This study finds that economic, regulatory orExpand
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Monitoring: Which Institutions Matter?
Within a cost-benefit framework, we hypothesize that independent institutions with long-term investments will specialize in monitoring and influencing efforts rather than trading. Other institutionsExpand
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Decoupling CEO Wealth and Firm Performance: The Case of Acquiring CEOS
We explore how compensation policies following mergers affect a CEO's incentives to pursue a merger. We find that even in mergers where bidding shareholders are worse off, bidding CEOs are better offExpand
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Determinants of Corporate Cash Policy: Insights from Private Firms
We provide one of the first large sample comparisons of cash policies in public and private U.S. firms. We first show that despite higher financing frictions, private firms hold, on average, aboutExpand
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The Importance of Industry Links in Merger Waves
type="main"> We represent the economy as a network of industries connected through customer and supplier trade flows. Using this network topology, we find that stronger product market connectionsExpand
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Do Firms Have Leverage Targets? Evidence from Acquisitions
In the context of large acquisitions, we provide evidence on whether firms have target capital structures. We examine how deviations from these targets affect how bidders choose to financeExpand
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The Cash-Flow Permanence and Information Content of Dividend Increases Versus Repurchases
We hypothesize that firms choose dividend increases to distribute relatively permanent cash-flow shocks and repurchases to distribute more transient shocks. As predicted, we find that post-shock cashExpand
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Do Analysts Matter for Governance? Evidence from Natural Experiments
Building on two sources of exogenous shocks to analyst coverage (broker closures and mergers), we explore the causal effects of analyst coverage on mitigating managerial expropriation of outsideExpand
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