• Publications
  • Influence
The Determinants and Implications of Corporate Cash Holdings
Abstract We examine the determinants and implications of holdings of cash and marketable securities by publicly traded U.S. firms in the 1971–1994 period. In time-series and cross-section tests, weExpand
  • 2,674
  • 447
  • PDF
Does the Contribution of Corporate Cash Holdings and Dividends to Firm Value Depend on Governance? A Cross‐country Analysis
Agency theories predict that the value of corporate cash holdings is less in countries with poor investor protection because of the greater ability of controlling shareholders to extract privateExpand
  • 842
  • 75
  • PDF
Culture, Openness, and Finance
Religions have little to say about shareholders but have much to say about creditors. We find that the origin of a country's legal system is more important than its religion and language inExpand
  • 941
  • 68
  • PDF
Differences in Governance Practices between U.S. And Foreign Firms: Measurement, Causes, and Consequences
We construct a firm-level governance index that increases with minority shareholder protection. Compared to U.S. matching firms, only 12.68% of foreign firms have a higher index. The value of foreignExpand
  • 484
  • 66
  • PDF
Financial Expertise of the Board, Risk Taking, and Performance: Evidence from Bank Holding Companies
Financial expertise among independent directors of U.S. banks is positively associated with balance-sheet and market-based measures of risk in the run-up to the 2007–2008 financial crisis. WhileExpand
  • 181
  • 22
  • PDF
Bank Power and Cash Holdings: Evidence from Japan
Using industrial firms from the United States, German, and Japan, we examine the effect of bank power on cash holdings. We show that Japanese firms hold more cash than U.S. or German firms. We alsoExpand
  • 288
  • 21
  • PDF
Measuring the economic importance of exchange rate exposure
Abstract This paper re-examines the nature and the economic significance of the exchange rate to firm value relation using a database of non-financial firms from over 18 countries. Our mainExpand
  • 142
  • 20
  • PDF
How Much Do Banks Use Credit Derivatives to Hedge Loans?
Before the credit crisis that started in mid-2007, it was generally believed by top regulators that credit derivatives make banks sounder. In this paper, we investigate the validity of this view. WeExpand
  • 226
  • 18
  • PDF
Exchange Rate Exposure and Competition: Evidence from the World Automotive Industry
Financial theory predicts that a change in the real exchange rate should affect the value of a multinational firm. To a large extent, past empirical research has not supported this theory. This studyExpand
  • 152
  • 17
  • PDF
What is a Dollar Worth? The Market Value of Cash Holdings
A curious fact of financial markets is that some firms have cash holdings in excess of their market value. To highlight this point, the Wall Street Journal reported that several firms had negativeExpand
  • 158
  • 16
  • PDF