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Refinancing Risk and Cash Holdings
type="main"> We find that firms mitigate refinancing risk by increasing their cash holdings and saving cash from cash flows. The maturity of firms’ long-term debt has shortened markedly, and thisExpand
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Corporate Governance and Firm Cash Holdings
We examine the relation between the management of cash holdings and corporate governance. We find that firms with weaker corporate governance have smaller cash reserves. Further tests suggest thatExpand
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Investor Horizons and Corporate Cash Holdings
We study the effect of investor horizons on corporate cash holdings. We argue that investors with longer horizons monitor more because their net benefit of monitoring is higher. Consequently, theExpand
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Operating Leverage, Profitability and Capital Structure
Operating leverage crowds-out financial leverage while also increasing profitability. Thus, operating leverage generates the negative relation between profitability and financial leverage thatExpand
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Incentive Effects of Extreme CEO Pay Cuts
We examine the causes and consequences of sharp CEO pay cuts, a phenomenon that has been mostly overlooked in the attention paid to overall rising executive pay. We find that a large CEO pay cut inExpand
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Corporate Financial Policies in Overvalued Debt Markets
We investigate the repercussions of credit market mistakes for a firm's borrowing and investment decisions. When credit ratings are relatively optimistic, we find evidence that firms take advantageExpand
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Investor Horizon and CEO Turnover-Performance Sensitivity *
We compare CEO turnover in public and private firms to gain insight into whether and how investor horizon influences CEO firing decisions. Controlling for governance structures, public firms haveExpand
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Operating Inflexibility, Profitability and Capital Structure
By introducing operating inflexibility into the standard capital structural model, we build a two-regime model to show that the negative relation between profitability and financial leverage is notExpand
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Trade Relationships, Indirect Economic Links, and Mergers
The economic links between firms created by customer and supplier relationships are critical determinants of those firms’ values and actions. Expand
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