• Publications
  • Influence
ONE OF THE MOST contentious issues in the theory of finance during the past quarter century has been the theory of capital structure. The geneses of this controversy were the seminal contributions byExpand
  • 2,310
  • 150
Synergistic gains from corporate acquisitions and their division between the stockholders of target and acquiring firms
This paper documents that a successful tender offer increases the combined value of the target and acquiring firms by an average of 7.4%. We also provide a theoretical analysis of the process ofExpand
  • 1,710
  • 118
The Structure and Pricing of Corporate Debt Covenants
We provide evidence on the covenant structure of corporate loan agreements. Building on the work of Jensen and Meckling [1976, Theory of the Firm: Managerial Behavior, Agency Costs, and CaptialExpand
  • 465
  • 93
  • PDF
Interfirm Tender Offers and the Market for Corporate Control
It is commonly believed that the interfirm cash tender offer is an attempt by the bidding firm to purchase the target shares and profit from their subsequent market appreciation. This belief isExpand
  • 426
  • 33
This paper investigates the rationale behind interlirm tender offers by examining the returns realized by the stockholders of lirms that were the targets of unsuccessful tender offers and lirms thatExpand
  • 633
  • 32
Corporate Bankruptcy and Insider Trading
The authors document significant sales by the insiders of firms filing bankruptcy petitions prior to the filing date. They also find that selling is more intense for top executives and officers andExpand
  • 219
  • 14
Activist Arbitrage: A Study of Open-Ending Attempts of Closed-End Funds
This paper documents frequent attempts by activist arbitrageurs to open-end discounted closed-end funds, particularly after the 1992 proxy reform which reduced the costs of communication amongExpand
  • 145
  • 12
  • PDF
Dividend Policy and Cash Flow Uncertainty
We explore the role of expected cash flow volatility as a determinant of dividend policy both theoretically and empirically. Our simple one period model demonstrates that, given the existence of aExpand
  • 180
  • 12
  • PDF
The Untenable Case for Chapter 11
  • 225
  • 9
  • PDF
Insider Trading, Outside Search, and Resource Allocation: Why Firms and Society May Disagree on Insider Trading Restrictions
We show that entrepreneurs may prefer to allow insider trading even when it is not socially optimal. We examine a model in which an insider/manager allocates resources on the basis of his privateExpand
  • 134
  • 9
  • PDF