Read Books Online and Download eBooks, EPub, PDF, Mobi, Kindle, Text Full Free.
Download Three Essays On Corporate Debt Policy full books in PDF, epub, and Kindle. Read online Three Essays On Corporate Debt Policy ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Author : Glenn E. Morgan
Publisher :
ISBN 13 :
Total Pages : 250 pages
Book Rating : 4.:/5 (266 download)
Download or read book Three essays on corporate debt policy written by Glenn E. Morgan and published by . This book was released on 1991 with total page 250 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Mahsa Somayeh Kaviani
Publisher :
ISBN 13 :
Total Pages : 167 pages
Book Rating : 4.:/5 (111 download)
Download or read book Three Essays on Corporate Debt Financing written by Mahsa Somayeh Kaviani and published by . This book was released on 2016 with total page 167 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the first of three essays, we study the relationship between corporate debt structures and the strength of creditor rights. Firms use a more concentrated debt-type structure as a reaction mechanism to stronger creditor rights. We show that managers form more concentrated debt structures in response to stronger creditor rights in order to first, reduce bankruptcy costs and second, to provide more monitoring incentives for creditors. Across 46 countries, we document that firms have more concentrated debt-type structures in countries with stronger creditor rights. Based on an examination of the cross-sectional heterogeneity of firms to different creditor rights regimes, we confirm our two proposed mechanisms. This study extends the literature of debt structure to an international setting and is the first to document the effect of cross-country legal and institutional determinants on the choice of debt structures. In the second essay, we investigate how uncertainty about economic policies influence corporate credit spreads. We find a large and positive association between corporate credit spreads and a news-based index of policy uncertainty. We document that a one standard deviation increase in policy uncertainty results in 25 basis points increase in the credit spreads of corporate bonds controlling for bond, firm and macro-economic variables. We find that the influence of policy uncertainty on corporate credit spreads differs across firms and is more pronounced for firms with higher investment irreversibility and dependence on government spending. We also document a larger impact of policy uncertainty during economic recessions. Our results show that not only firm-level default probabilities, but also bond-CDS bases increase in response to elevated policy uncertainty. The third and final essay empirically measures the financial and economic costs (benefits) to firm value associated with deteriorations or improvements in the firm’s credit quality. We document that firms incur economically large and statistically significant costs to their values following credit-rating deteriorations. Consistent with an asymmetric effect, we find significant but smaller firm-value benefits associated with credit-rating upgrades. The financial costs to a firm’s market value associated with each notch downgrade to the investment and speculative grade categories are 7.1% and 14.8%, respectively, and these costs are generally larger than the economic costs to the firm value from credit rating downgrades. Using a continuous KMV distance to default model, we conclude that deteriorations (improvements) in a model-generated credit rating quality can also adversely (positively) affect firm value. Our findings have implications for corporate financing and leverage decisions, and for the unresolved underleverage puzzle (Graham, 2001).
Author : Hao Wang
Publisher :
ISBN 13 :
Total Pages : 276 pages
Book Rating : 4.:/5 (316 download)
Download or read book Three Essays on Corporate Debt, Capital Structure and Managerial Entrenchment written by Hao Wang and published by . This book was released on 2007 with total page 276 pages. Available in PDF, EPUB and Kindle. Book excerpt: "In the third essay, we develop a valuation model that simultaneously captures credit risk and interest rate risk, and apply it to study the valuation of putable corporate bonds. We ask what risks put features provide insurance against in practice - credit risk, liquidity risk or interest rate risk - and to what degree? We find that they reduce the components of all three risks in bond spreads. The most important, perhaps surprisingly is default or spread risk, followed by term structure risk. The reduction in the liquidity component is present but rather small." --
Author : Matteo P. Arena
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (123 download)
Download or read book Three Essays on the Corporate Debt Choice written by Matteo P. Arena and published by . This book was released on 2006 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation examines the determinants of the corporate debt choice between different forms of debt financing and different countries. By examining the most extensive sample of U.S. debt issues to date, Essay 1 shows that firms that issue 144A debt are significantly different from firms that privately place non-bank debt without using the 144A rule. I also find that traditional private placements rather than bank loans are the favorite debt source for firms with good credit quality that cannot access the public market because of flotation costs and information asymmetry. Essay 2 examines how governance provisions that affect the cost of debt are related to the corporate debt choice. I find that firms with fewer takeover defenses and larger blockholder ownership are more likely to issue private debt. This result is consistent with the hypothesis that private debt claimants can reduce the expected negative impact of takeovers on debtholder value by enforcing stricter covenants or by renegotiating debt in case of takeover. Essay 3 examines the external debt financing choices of multinational firms by using a unique international dataset of firm-level debt offerings. I show that tax-based incentives, country-specific investor preferences, and difference in legal regimes across countries influence multinational firms in their debt location choice.
Author : Haekwon Lee
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (14 download)
Download or read book Three Essays on Lending and Corporate Debt Structure written by Haekwon Lee and published by . This book was released on 2018 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Tijana Rajkovic
Publisher :
ISBN 13 :
Total Pages : 169 pages
Book Rating : 4.:/5 (958 download)
Download or read book Three Essays on Inside Debt written by Tijana Rajkovic and published by . This book was released on 2015 with total page 169 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation is composed of three essays examining inside debt. The first essay tests the impact of inside debt on security issuance decisions. I find that CEOs with high debt incentives are more likely to issue equity that debt, unlever firm capital structure, and hold debt of longer average maturity. The results indicate that managers with high debt incentives favor financing decisions that decrease firm risk. The second essay examines the determinants of use and magnitude of inside debt. I find a positive association between inside debt and CEO talent. In addition, I find that inside debt affects the likelihood of CEO post-retirement board service and CEO successor characteristics. The third essay examines the impact of inside debt on corporate dividend policy. I find that companies with large CEO holdings of inside debt are more likely to pay and increase dividends, and have larger dividend payouts. The results indicate that inside debt, by reducing firm risk, positively influences corporate dividend policy.
Author : Jeong Hwan Lee
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (1 download)
Download or read book Three Essays in Corporate Finance written by Jeong Hwan Lee and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: My model yields the following main results: (1) Equity issues are pro-cyclical, and concentrated for small, low profit, and large investment demand firms in earlier stage of economic upturns. (2) Payouts peak in later stages of upturns and co-move positively with equity issues; (3) Debt policies move counter-cyclically, and leverage ratios after debt issuance and retirement are even higher during economic downturns. My comparative static analysis predicts pro-cyclical debt policy for financially constrained firms, and pervasively conservative use of debt for firms expecting financial market shutdowns, a sharp profitability drop, or a longer stay in economic downturns.
Download or read book Three Essays in Dynamic Corporate Finance written by and published by . This book was released on with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The three essays constituting this thesis focus on financing and cash management policy. The first essay aims to shed light on why firms issue debt so conservatively. In particular, it examines the effects of shareholder and creditor protection on capital structure choices. It starts by building a contingent claims model where financing policy results from a trade-off between tax benefits, contracting costs and agency costs. In this setup, controlling shareholders can divert part of the firms' cash ows as private benefits at the expense of minority share- holders. In addition, shareholders as a class can behave strategically at the time of default leading to deviations from the absolute priority rule. The analysis demonstrates that investor protection is a first order determinant of firms' financing choices and that conflicts of interests between firm claimholders may help explain the level and cross-sectional variation of observed leverage ratios. The second essay focuses on the practical relevance of agency conflicts. De- spite the theoretical development of the literature on agency conflicts and firm policy choices, the magnitude of manager-shareholder conflicts is still an open question. This essay proposes a methodology for quantifying these agency conflicts. To do so, it examines the impact of managerial entrenchment on corporate financing decisions. It builds a dynamic contingent claims model in which managers do not act in the best interest of shareholders, but rather pursue private benefits at the expense of shareholders. Managers have discretion over financing and dividend policies. However, shareholders can remove the manager at a cost. The analysis demonstrates that entrenched managers restructure less frequently and issue less debt than optimal for shareholders. I take the model to the data and use observed financing choices to provide firm-specific estimates of the degree of managerial entrenchment. Using structural econometrics, I find costs of contro.
Author : Neil Harold Buchanan
Publisher :
ISBN 13 :
Total Pages : 440 pages
Book Rating : 4.:/5 (124 download)
Download or read book Debt, Deficits, and Fiscal Policy written by Neil Harold Buchanan and published by . This book was released on 1996 with total page 440 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Aoran Zhang
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (129 download)
Download or read book Three Essays on the Role of Political Connections in Corporate Finance written by Aoran Zhang and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation investigates the influence of political connections on corporate financing activities in China. The thesis consists of three chapters. In the first essay, we explore whether and how political connections affect the likelihood of completing a cross-border M&A deal for Chinese publicly listed, but privately-owned enterprises (POEs) and the resulting firm performance. In line with the proposed political connection trade-off theory, we demonstrate that POEs with politically connected top managers are more likely to complete a cross-border M&A deal than POEs with no such connections, but that this comes at the cost of negative announcement returns and subsequent lower accounting performance. These findings support the idea that politically connected top managers engage in empire building behavior at the cost of shareholders' wealth. In the second essay, we examine how political connections influence the likelihood of corporate bond issuance for POEs in China. Using a sample of Chinese POEs from 2007 to 2016, the research shows that politically-connected POEs are more likely to issue corporate bonds as a debt-financing instrument than their non-connected counterparts, and that they achieve lower coupon rates (i.e., lower refinancing costs). On the other hand, this research indicates that corporate bond-issuing POEs in China have weaker corporate governance and a surprisingly higher default probability. Overall, the results show that the corporate bond market in China is strongly distorted by political factors. In the third essay, we study how implicit government guarantees affect the yield spreads of Chinese corporate bonds. We presume that quasi-municipal corporate bonds (so called "Chengtou" bonds), issued by local government financing vehicles (LGFVs), carry an implicit government guarantee. Using a sample of publicly traded corporate bonds between 2010 and 2017, we find that bond investors are significantly less sensitive to bond-specific risks for corporate bonds with an implicit government guarantee: the yield spreads of Chengtou bonds are significantly lower than those of corporate bonds issued by POEs in China. We also find that corporate bonds from Northeast China are riskier than those issued by firms elsewhere in the country. Furthermore, we discover that policy changes introduced by the central government, which were intended to regulate local debt financing activities, significantly reduced the gap in yield spreads between Chengtou bonds and bonds issued by POEs. Overall, the empirical results suggest that implicit government guarantees play a crucial role in corporate debt market and that China's recent policy changes reduce the effectiveness of implicit government guarantees, making corporate bond market more market-oriented.
Author : Asad Sayeed
Publisher :
ISBN 13 :
Total Pages : 14 pages
Book Rating : 4.:/5 (2 download)
Download or read book Three Essays on Debt written by Asad Sayeed and published by . This book was released on 2001 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Sigrid Röhrs
Publisher :
ISBN 13 :
Total Pages : 199 pages
Book Rating : 4.:/5 (773 download)
Download or read book Three Essays on Fiscal Policy and Government Debt written by Sigrid Röhrs and published by . This book was released on 2011 with total page 199 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Katarzyna Nelicka Platt
Publisher :
ISBN 13 :
Total Pages : 228 pages
Book Rating : 4.:/5 (927 download)
Download or read book Three Essays on the Cost of Debt Capital written by Katarzyna Nelicka Platt and published by . This book was released on 2015 with total page 228 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : John Bailey Jones
Publisher :
ISBN 13 :
Total Pages : 500 pages
Book Rating : 4.:/5 (89 download)
Download or read book Three Essays on Business Cycles written by John Bailey Jones and published by . This book was released on 1998 with total page 500 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : M. Rostom
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (16 download)
Download or read book Three Essays on Debt written by M. Rostom and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Henry Carter Adams
Publisher :
ISBN 13 :
Total Pages : 436 pages
Book Rating : 4.3/5 (91 download)
Download or read book Public Debts written by Henry Carter Adams and published by . This book was released on 1887 with total page 436 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author : Yelena Larkin
Publisher :
ISBN 13 :
Total Pages : 372 pages
Book Rating : 4.:/5 (798 download)
Download or read book Three Essays on Financial Policy of a Firm written by Yelena Larkin and published by . This book was released on 2012 with total page 372 pages. Available in PDF, EPUB and Kindle. Book excerpt: The first chapter of the dissertation analyzes how characteristics of a firm's brand affect financial decisions by using a proprietary database of consumer brand evaluation. It demonstrates that positive consumer attitude alleviates financial frictions by providing more net debt capacity, as measured by higher leverage and lower cash holdings. Brand perception reduces the overall riskiness of a firm, as strong consumer evaluations translate into lower future cash flow volatility, higher Z-scores, and better performance during recession. Creditors favor strong brands by demanding lower yields on corporate public bonds. The results are more pronounced among small firms and non-investment grade bonds, contradicting a number of reverse causality and omitted variables explanations. The second chapter develops a framework that shows how exactly market timing and trade-off forces coexist. The idea is that market timing benefits dominate trade-off costs when firms are close to their target leverage, but become offset by the rebalancing considerations when firms are farther away. Two sets of empirical results support the validity of the framework. First, the sensitivity of equity issuances to past stock performance is the highest among firms close to the target leverage. Second, the long-run performance of equity issuers is also a function of their deviation from target leverage. The lower the leverage of issuing firms is relative to the target, the worse their after-issuance returns are, consistent with higher market timing incentives compared to other issuers. The third chapter studies whether investors value dividend smoothing stocks differently by exploring the implications of dividend smoothing for firms' expected returns and their investor clientele. First, it demonstrates that dividend smoothing is associated with lower average stock returns in both univariate and multivariate settings. Some of this return differential can be attributed to lower risk, captured by return comovement among high (low) smoothing firms. Second, the chapter shows that institutional investors, and specifically, mutual funds, are more likely to hold dividend smoothing stocks. Last, firms that smooth their dividends issue equity more frequently. Together, these results are consistent with the role of dividend smoothing in mitigating the impact of agency conflicts on the cost of capital.
