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Costly external finance, corporate investment, and the subprime mortgage credit crisis
We study the effect of the recent financial crisis on corporate investment. The crisis represents an unexplored negative shock to the supply of external finance for non-financial firms. CorporateExpand
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When Are Outside Directors Effective?
This paper uses recent regulations that have required some companies to increase the number of outside directors on their boards to generate estimates of the effect of board independence onExpand
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Market Segmentation and Cross-Predictability of Returns
We present evidence supporting the hypothesis that due to investor specialization and market segmentation, value-relevant information diffuses gradually in financial markets. Using the stock marketExpand
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Evidence on the Dark Side of Internal Capital Markets
This article documents differences between the Q-sensitivity of investment of stand-alone firms and unrelated segments of conglomerate firms. Unrelated segments exhibit lower Q-sensitivity ofExpand
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Corporate Diversification and the Cost of Capital
We examine whether organizational form matters for a firm's cost of capital. Contrary to conventional view, we argue that coinsurance among a firm's business units can reduce systematic risk throughExpand
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Club Deals in Leveraged Buyouts
We analyze the pricing and characteristics of club deal leveraged buyouts (LBOs)--those in which two or more private equity partnerships jointly conduct an LBO. Using a comprehensive sample ofExpand
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Integration, Organizational Processes and Allocation of Resources
Does the level of integration of a firm affect the quality of information available to its top decision makers responsible for allocating resources? Motivated by the pervasiveness of specificExpand
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Cross-Industry Momentum
This paper documents a strong cross-momentum effect among industries that are related to each other along the supply chain. Specifically, trading strategies that buy and sell industries based onExpand
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Opportunistic Proposals by Union Shareholders
Corporate governance reformers hope that giving shareholders more voting rights will improve firm performance, but critics argue that some shareholders, such as labor unions and public pensions, willExpand
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