• Publications
  • Influence
Determinants of corporate borrowing
Abstract Many corporate assets, particularly growth opportunities, can be viewed as call options. The value of such ‘real options’ depends on discretionary future investment by the firm. IssuingExpand
  • 10,808
  • 1102
  • PDF
R2 Around the World: New Theory and New Tests
Morck, Yeung and Yu (MYY, 2000) show that R2 and other measures of stock market synchronicity are higher in countries with less developed financial systems and poorer corporate governance. MYY andExpand
  • 1,158
  • 176
  • PDF
Capital Structure Puzzle
This paper contrasts the "static tradeoff" and "pecking order" theories of capital structure choice by corporations. In the static tradeoff theory, optimal capital structure is reached when the taxExpand
  • 668
  • 49
The Paradox of Liquidity
The more liquid a company's assets, the greater their value in a short-notice liquidation. Liquid assets are generally viewed as increasing debt capacity, other things being equal. This paperExpand
  • 820
  • 45
  • PDF
Testing static tradeoff against pecking order models of capital structure 1 This paper has benefited
This paper tests traditional capital structure models against the alternative of a pecking order model of corporate financing. The basic pecking order model, which predicts external debt financingExpand
  • 1,049
  • 44
  • PDF
Finance Theory and Financial Strategy
Despite its major advances, finance theory has had scant impact on strategic planning. Strategic planning needs finance and should learn to apply finance theory correctly. However, finance theoryExpand
  • 732
  • 41
  • PDF
The Internal Governance of Firms
We develop a model of internal governance where the self-serving actions of top management are limited by the potential reaction of subordinates. We find that internal governance can mitigate agencyExpand
  • 202
  • 22
  • PDF
Financing of corporations
This review evaluates the four major theories of corporate financing: (1) the Modigliani-Miller theory of capital-structure irrelevance, in which firm values and real investment decisions areExpand
  • 307
  • 22
  • PDF
R-Squared Around the World: New Theory and New Tests
Morck, Yeung and Yu (MYY, 2000) show that R2 and other measures of stock market synchronicity are higher in countries with less developed financial systems and poorer corporate governance. MYY andExpand
  • 110
  • 14
...
1
2
3
4
5
...