• Publications
  • Influence
Back to the Beginning: Persistence and the Cross-Section of Corporate Capital Structure
We find that the majority of variation in leverage ratios is driven by an unobserved timeinvariant effect that generates surprisingly stable capital structures: High (low) levered firms tend toExpand
  • 1,084
  • 142
  • PDF
Equilibrium Pricing and Optimal Hedging in Electricity Forward Markets
Spot power prices are volatile and since electricity cannot be economically stored, familiar arbitrage-based methods are not applicable for pricing power derivative contracts. This paper presents anExpand
  • 489
  • 107
  • PDF
Consumer Confidence and Asset Prices: Some Empirical Evidence
We explore the time-series relationship between investor sentiment and the small-stock premium using consumer confidence as a measure of investor optimism. We estimate the components of consumerExpand
  • 692
  • 67
  • PDF
Stock Options and Managerial Incentives for Risk-Taking: Evidence from FAS 123R
We provide new evidence on the relation between option-based compensation and risk-taking behavior by exploiting the change in the accounting treatment of stock options following the adoption of FASExpand
  • 348
  • 58
  • PDF
Breaking up is hard to do? An analysis of termination fee provisions and merger outcomes
This paper provides large-sample evidence pertaining to the use of and wealth effects associated with provisions for termination fees in merger agreements between 1989 and 1998. The evidence suggestsExpand
  • 276
  • 57
Book‐to‐Market Equity, Distress Risk, and Stock Returns
This paper examines the relationship between book-to-market equity, distress risk, and stock returns. Among firms with the highest distress risk as proxied by Ohlson's (1980) O-score, the differenceExpand
  • 702
  • 50
  • PDF
Does Corporate Diversification Destroy Value
We analyze several hundred firms that expand via acquisition and0or increase their number of business segments. The combined market reaction to acquisition announcements is positive but acquiringExpand
  • 743
  • 50
  • PDF
Debt Capacity and Tests of Capital Structure Theories
We examine the impact of explicitly incorporating a measure of debt capacity in recent tests of competing theories of capital structure. Our main results are that if external funds are required, inExpand
  • 584
  • 49
  • PDF
Does the use of peer groups contribute to higher pay and less efficient compensation
We provide empirical evidence on how the practice of competitive benchmarking affects chief executive officer (CEO) pay. We find that the use of benchmarking is widespread and has a significantExpand
  • 384
  • 40
  • PDF
Corporate policies restricting trading by insiders
This paper provides the first systematic examination of policies and procedures put in place by corporations to regulate trading in the stock by the firm's own insiders. Over 90 percent of our sampleExpand
  • 420
  • 39
  • PDF