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Asset sales and increase in focus
We find that asset sales lead to an improvement in the operating performance of the seller's remaining assets in each of the three years following the asset sale. The improvement in performanceExpand
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Top‐Management Compensation and Capital Structure
The interrelationship between top-management compensation and the design and mix of external claims issued by a firm is studied. The optimal managerial compensation structures depend on not only theExpand
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Corporate Governance and Board Effectiveness
This paper surveys the empirical and theoretical literature on the mechanisms of corporate governance. We focus on the internat mechanisms of corporate governance (e.g., arising from conflicts ofExpand
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Dividends, Dilution, and Taxes: A Signalling Equilibrium
A signalling equilibrium with taxable dividends is identified. In this equilibrium, corporate insiders with more valuable private information optimally distribute larger dividends and receive higherExpand
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An empirical analysis of strategic competition and firm values The case of R&D competition
Abstract We operationalize a firm's competitive strategy through a new empirical measure, and develop a framework for empirical analysis of the market value of strategic behavior. Using thisExpand
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Takeovers and the Cross-Section of Returns
This paper considers the impact of takeover (or acquisition) likelihood on firm valuation. If firms are more likely to acquire during times when they have free cash and/or when the required rate ofExpand
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On the Optimality of Resetting Executive Stock Options
Recent empirical work has documented the tendency of corporations to reset strike prices on previously-awarded executive stock option grants when declining stock prices have pushed these optionsExpand
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Outside Monitoring and CEO Compensation in the Banking Industry
We hypothesize that CEO compensation is optimally designed to trade off two types of agency problems: the standard shareholder-management agency problem as well as the risk-shifting problem betweenExpand
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Debtor-in-Possession Financing and Bankruptcy Resolution: Empirical Evidence
Debtor-in-Possession (DIP) financing is a unique form of enhanced secured financing that is granted to firms filing for reorganization under Chapter 11 of the US Bankruptcy Code. Opponents of DIPExpand
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The Voluntary Restructuring of Large Firms in Response to Performance Decline
Much of the research on corporate restructuring has examined the causes and aftermath of extreme changes in corporate governance such as takeovers and bankruptcy. In contrast, we study restructuringsExpand
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