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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
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The debt-equity choice
When firms adjust their capital structures, they tend to move toward a target debt ratio that is consistent with theories based on tradeoffs between the costs and benefits of debt. In contrast toExpand
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Financial Distress and Corporate Performance
This study finds that highly leveraged firms lose substantial market share to their more conservatively financed competitors in industry downturns. Specifically, firms in the top leverage decile inExpand
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The Determinants of the Maturity of Corporate Debt Issues
The authors document the determinants of the term to maturity of 7,369 bonds and notes issued between 1982 and 1993. Their main finding is that large firms with investment grade credit ratingsExpand
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Block Share Purchases and Corporate Performance
This paper investigates the causes and consequences of activist block share purchases in the 1980s. We find that activist investors were most likely to purchase large blocks of shares in highlyExpand
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The determinants of leveraged buyout activity : Free cash flow vs. financial distress costs
This paper investigates the determinants of leveraged buyout activity by comparing firms that have implemented leveraged buyouts to those that have not. Consistent with the free cash flow theory, theExpand
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The Debt-Equity Choice: An Analysis of Issuing Firms
This paper compares the characteristics of U.S. firms which issued equity between 1976 and 1993 to those which increased their use of debt financing. We find that fims are most likely to issue debtExpand
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Operating Performance in Leveraged Buyouts: Evidence From 1985 - 1989
This study documents operating performance changes following 44 of the largest LBOs completed between 1985 and 1989. Contrary to the widely held view that these transactions were marginal, theExpand
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There have been several cases in recent years-most notably, Chrysler-in which shareholders have objected to the level of companies' holdings of cash and other liquid assets. This paper describes theExpand
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Does Coordinated Institutional Activism Work? An Analysis of the Activities of the Council of Institutional Investors
The Council of Institutional Investors is a group of public and private pension funds which collectively own over $800 billion in financial assets within the United States. The Council has provided aExpand
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