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Growth Opportunities and the Choice of Leverage, Debt Maturity, and Covenants
We investigate the effect of growth opportunities in a firm's investment opportunity set on its joint choice of leverage, debt maturity, and covenants. Using a database that contains detailed debtExpand
Are Overconfident CEOS Born or Made? Evidence of Self-Attribution Bias from Frequent Acquirers
The history of mergers and acquisitions made by individual CEOs is explored to find evidence that the market anticipates future deals based on the CEO's acquisition history and impounds such anticipation into stock prices. Expand
The Effect of Lender Identity on a Borrowing Firm's Equity Return
Previous research demonstrates that a firm's common stock price tends to fall when it issues new public securities. By contrast, commercial bank loans elicit significantly positive borrower returns.Expand
Bondholder Wealth Effects in Mergers and Acquisitions: New Evidence from the 1980s and 1990s
We examine the wealth effects of mergers and acquisitions on target and acquiring firm bondholders in the 1980s and 1990s. Consistent with a coinsurance effect, below investment grade target bondsExpand
Cross Subsidies, External Financing Constraints, and the Contribution of the Internal Capital Market to Firm Value
This paper examines the link between the value of a diversified firm and the value of its internal capital. We construct measures of the value of internal capital market transactions based on theExpand
The Takeover Deterrent Effect of Open Market Share Repurchases
This paper examines whether open market share repurchases deter takeovers. We model pre-repurchase takeover probability as a latent variable and examine its impact on the firm's decision toExpand
Consumer-Based Brand Equity and Firm Risk
Investors and managers evaluate potential investments in terms of risk and return. Research has focused on linking marketing activities and resource deployments with returns but has largely neglectedExpand
Are Bank Loans Special? Evidence on the Post-Announcement Performance of Bank Borrowers
Abstract Unlike seasoned equity or public debt offerings, bank loan financing elicits a significantly positive announcement return, which has led financial economists to characterize bank loans asExpand
The cost of market versus regulatory discipline in banking 1 We thank Allen Berger, David Brown, Ric
We present evidence that insured deposit financing shields banks from the full costs of market discipline. Banks experiencing Moody's downgrades exhibit abnormal equity returns that are increasing inExpand
The Influence of Governance on Investment: Evidence from a Hazard Model
Does corporate governance affect the timing of large investment projects? Hazard model estimates suggest strong shareholder governance may deter managers from pursuing large investments. ControllingExpand