Dissertations / Theses: 'Corporate Finance'

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Fedaseyeu, Viktar. "Essays in Household Finance and Corporate Finance." Thesis, Boston College, 2011. http://hdl.handle.net/2345/3405.

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Thesis advisor: Philip Strahan
In the first two essays of this dissertation, I examine the role of third-party debt collectors in consumer credit markets. First, using law enforcement as an instrument, I find that higher density of debt collectors increases the supply of unsecured credit. The estimated elasticity of the average credit card balance with respect to the number of debt collectors per capita is 0.49, the elasticity of the average balance on non-credit card unsecured loans with respect to the number of debt collectors per capita is 1.32. There is also some evidence that creditors substitute unsecured credit for secured credit when the number of debt collectors increases. Higher density of debt collectors improves recoveries, which enables lenders to extend more credit. Finally, creditors charge higher interest rates and lend to a larger pool of borrowers when the density of debt collectors increases, presumably because better collections enable them to extend credit to riskier applicants. In the second essay I investigate the economics of the debt collection industry. The existence of third-party debt collection agencies cannot be explained by the benefits of specialization and economies of scale alone. Rather, the debt collection industry can serve as a coordination mechanism between creditors. If a debt collection agency collects on behalf of several creditors, the practices it uses will be associated will all creditors that hired it. Hence, consumers will be unable to punish individual creditors for using harsh practices. As a result, the third-party agency may use harsher debt collection practices than individual creditors collecting on their own. As long as the costs of hiring third-party debt collectors are below the benefits from using harsh debt collection practices, the debt collection industry will create economic value for creditors. The last essay, written jointly with Thomas Chemmanur, develops a theory of corporate boards and their role in forcing CEO turnover. We show that in general the board faces a coordination problem, leading it to retain an incompetent CEO even when a majority of board members receive private signals indicating that she is of poor quality. We solve for the optimal board size, and show that it depends on various board and firm characteristics: one size does not fit all firms. We develop extensions to our basic model to analyze the optimal composition of the board between firm insiders and outsiders and the effect of board members observing imprecise public signals in addition to their private signals on board decision-making
Thesis (PhD) — Boston College, 2011
Submitted to: Boston College. Carroll School of Management
Discipline: Finance

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Cannon, Bradley. "Essays in Behavioral Finance and Corporate Finance." The Ohio State University, 2020. http://rave.ohiolink.edu/etdc/view?acc_num=osu1596734414457693.

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Li, Yiwei. "Essays on corporate governance and corporate finance." Thesis, University of Reading, 2018. http://centaur.reading.ac.uk/80634/.

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This thesis is a comprehensive study on how corporate governance structure and quality affect the corporate policies. First of all, I examine the effects of female directors on corporate debt maturity structures, using a dataset of S&P 1500 firms with 10,285 firm–year observations during 1997–2016. I find that firms with a higher ratio of female directors tend to have a larger proportion of short-maturity debt. This effect is more pronounced with female independent directors but insignificant with female inside directors. Then, I study the association between both the age of compensation committee members and the age dissimilarity between the CEO and compensation committee members and CEO compensation, using a dataset of FTSE 350 firms with 3,420 firm–year observations during 2002–2013. I find that both the age of committee members and the age dissimilarity from the CEO have negative impacts on the level of CEO total compensation and cash compensation. On the issue of how CEO’s human capital influences corporate policies, I find that CEOs with general managerial skills can account for corporate investment inefficiency. CEOs who possess general managerial skills over broad work experience (generalist CEOs) have different risk-taking incentives compared with their counterpart CEOs, whose skills are only valuable within a specific organization (specialist CEOs). They may thus overinvest when there is a lack of efficient monitoring. Finally, I study the effect of firm-level tournament incentives on the level and value of firm cash holding, using a sample of 20,993 US firm–year observations over the 1992–2014 period. This paper investigates the impact of tournament incentives of the Chief Financial Officer (CFO) on the level and valuation of firm cash holdings. I document the higher propensities to keep larger cash holdings for firms with strong tournament incentives.

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Biguri, Pastor Kizkitza. "Essays in corporate finance." Doctoral thesis, Universitat Autònoma de Barcelona, 2016. http://hdl.handle.net/10803/387423.

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La presente tesis estudia como las decisiones de estructura de deuda y de cobertura de riesgo de las empresas afectan a su nivel de inversión en activo fijo. En primer capítulo se centra en construir hechos estilizados sobre la relación entre la estructura de deuda, la estructura de capital y la inversión cuando las empresas pueden acceder tanto a deuda segura (con avales) como a deuda insegura (sin avales). Los resultados sugieren que i) las empresas con mayor calidad crediticia tienen a tomar prestado más en términos de deuda insegura, ii) una mayor capacidad de la empresa de ofrecer avales no necesariamente implica una mayor inversión y iii) las empresas que dependen más de la deuda insegura en su estructura de deuda, pueden llevar a cabo una mayor inversión en activo fijo. El segundo capítulo utiliza dos estrategias de identificación distintas para testar el efecto causal de los hechos estilizados derivados del capítulo uno. Testeo la hipótesis desde la perspectiva del canal de balance y crédito. Los resultados sugieren que la composición de la estructura de deuda tiene efecto sobre las variables reales. Cuanto mayor es la presencia de la deuda insegura en la estructura de deuda de las empresas, las empresas tienden a invertir más. La explicación más plausible para este resultado es que la deuda insegura es más efectiva en términos de costes; tanto en tipos de interés como en cláusulas contractuales (covenants). Por último, el tercer capítulo utiliza un panel de perturbaciones al coste de la cobertura mediante derivados en distintos momentos de tiempo para estudiar la relación entre la cobertura y el riesgo idiosincrático. Hago uso de las introducciones y eliminaciones de derivados sobre commodities por parte del Chicago Mercantile Exchange y otros mercados pos este motivo. Los resultados sugieren que un acceso más barato a instrumentos derivados reduce la volatilidad de los flujos de caja y por tanto, permite incrementar la inversión de las empresas afectadas.
This dissertation studies how debt structure and risk management decisions affect firms' investment. The first chapter focuses on building the stylized facts on the relation between debt structure, capital structure and investment when firms' have both, secured and unsecured debt available. Results suggests that i) firms with higher creditworthiness tend to borrow more unsecured debt, ii) higher collateral availability may not lead to more investment and iii) more reliance on unsecured debt leads to more investment. The second chapter uses two identification strategies to test the causal effect of the relations derived in chapter one. I test the hypothesis from a balance sheet and credit channel perspective. Results show that the composition of debt structure of firms has real implications. The higher the unsecured debt in debt structure, the more firms can invest. The explanation for this result is that unsecured debt is more cost-effect in terms of spreads and debt covenants. Finally, the last chapter uses a panel of shocks to the cost of hedging to different firms at different points in time to study the relation between hedging and risk. I exploit the introduction and delisting of commodity derivatives by the CME and other exchanges for identification. I find evidence suggesting that cheaper access to hedging instruments reduces the volatility of cashflows and thus, increases firms' investment.

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Högfeldt, Peter. "Essays in corporate finance." Doctoral thesis, Handelshögskolan i Stockholm, Finansiell Ekonomi (FI), 1993. http://urn.kb.se/resolve?urn=urn:nbn:se:hhs:diva-1457.

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Colpitts, Jeffrey Charles. "Essays in corporate finance." Thesis, University of British Columbia, 2007. http://hdl.handle.net/2429/31166.

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In the first essay, I consider the impact of tort liability on firms capital structure. Tort litigation is not only a substantial risk facing firms worldwide, but is also a unique form of risk, in that it can be exacerbated or mitigated by how firms adjust their debt-equity mix. I examine how firms ought to adjust their capital structure when faced with litigation, and consider various extensions to basic model. These include the interaction between capital structure, tort liability and insurance, how the problem changes when several firms face tort risk and are jointly and severally liable, and the implications that arise from moving from a one period to a two period setting. In the second essay, we develop and test a theory of insurers' choice of the mix of equity and liabilities. The role of equity in insurance markets and in our model is to back insurers' promises to pay claims when there is aggregate uncertainty, or dependence among risks. Depending on the nature of this aggregate uncertainty, the equity held by firms in a competitive insurance market may increase with rising uncertainty, or it may initially increase then decrease. The ratio of equity to revenue unambiguously increases with uncertainty. We test the model, as well as implications of recent models of insurance market dynamics, on a cross-section of U.S. property-liability insurers. In the third essay, I examine optimal contracting with risk averse managers. I start from the following observations: (1) managers select projects and exert effort; (2) risk averse managers make distorted project selection decisions, and this problem is increasing in risk aversion; (3) managers with low risk aversion are attracted to high-power compensation packages. I develop a model where high-power incentive contracts act as screening devices, helping firms attract less risk averse managers who will then make less distorted project selection decisions. Optimal contracts trade off the screening and effort-inducing benefits of incentive contracts against the deviation from optimal risk sharing. The resulting equilibrium provides a new perspective on why some managerial contracts feature such high-powered incentives, as well predictions for the cross-sectional variation in the power of incentive contracts.
Business, Sauder School of
Graduate

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Zhang, Xiao. "Essays in corporate finance." Thesis, University of Glasgow, 2016. http://theses.gla.ac.uk/7639/.

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China has been growing rapidly over the last decades. The private sector is the driving force of this growth. This thesis focuses on firm-level investment and cash holdings in China, and the chapters are structured around the following issues. 1. Why do private firms grow so fast when they are more financially constrained? In Chapter 3, we use a panel of over 600,000 firms of different ownership types from 1998 to 2007 to find the link between investment opportunities and financial constraints. The main finding indicates that private firms, which are more likely to be financially constrained, have high investment-investment opportunity sensitivity. Furthermore, this sensitivity is relatively lower for state-owned firms in China. This shows that constrained firms value investment opportunities more than unconstrained firms. To better measure investment opportunities, we attempt to improve the Q model by considering supply and demand sides simultaneously. When we capture q from the supply side and the demand side, we find that various types of firms respond differently towards different opportunity shocks. 2. In China, there are many firms whose cash flow is far greater than their fixed capital investment. Why is their investment still sensitive to cash flow? To explain this, in Chapter 4, we attempt to introduce a new channel to find how cash flow affects firm-level investment. We use a dynamic structural model and take uncertainty and ambiguity aversion into consideration. We find that uncertainty and ambiguity aversion will make investment less sensitive to investment opportunities. However, investment-cash flow sensitivity will increase when uncertainty is high. This suggests that investment cash flow sensitivities could still be high even when the firms are not financially constrained. 3. Why do firms in China hold so much cash? How can managers’ confidence affect corporate cash holdings? In Chapter 5, we analyse corporate cash holdings in China. Firms hold cash for precautionary reasons, to hedge frictions such as financing constraints and uncertainty. In addition, firms may act differently if they are confident or not. In order to determine how confidence shocks affect precautionary savings, we develop a dynamic model taking financing constraints, uncertainty, adjustment costs and confidence shocks into consideration. We find that without confidence shocks, firms will save money in bad times and invest in good times to maximise their value. However, if managers lose their confidence, they tend to save money in good times to use in bad times, to hedge risks and financing constraint problems. This can help explain why people find different results on the cash flow sensitivity of cash. Empirically, we use a panel of Chinese listed firms. The results show that firms in China save more money in good times, and the confidence shock channel can significantly affect firms’ cash holdings policy.

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Zaccaria, Luana. "Essays in corporate finance." Thesis, London School of Economics and Political Science (University of London), 2016. http://etheses.lse.ac.uk/3413/.

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In most countries financial authorities regulate capital markets by monitoring banks’ lending activity and imposing disclosure requirements on issuers of publicly traded securities. However, most companies’ financial claims are not listed and many different investors, outside of the banking industry, affect credit expansion and capital provision to the real economy. Examples of non-banks capital providers include venture capital firms and money market funds. This PhD thesis focuses on the growing and largely unsupervised finance arena that lies outside of traditional banking intermediation or public capital markets. In the first chapter, “Are Family and Friends the Wrong Investors? Evidence from U.S. Start-ups”, I investigate the effects of funding from family and friends on firms’ subsequent access to venture capital. To address potential endogeneity of informal finance, I use an instrument that hinges on founders’ family size as an exogenous constraint on the supply of informal funds. My results show that informal finance reduces the probability of future financing events. In the second chapter, “Private Capital Markets and Entrepreneurial Debt: Evidence from U.S. Unregistered Securities Offerings” co-authered with Dr. Juanita Gonzalez-Uribe, we investigate the use of non-bank private debt by very early stage firms. Contrary to many accounts of start-up activity, we document that entrepreneurial firms have an important reliance on private debt. We show that late stage rounds are 3% more likely to be conducted with debt contracts but we find little evidence that collateral availability affects the issuance of private debt. Finally, in “Discipline in the Securitization Market”, I examine how investors’ sophistication in securitization markets affects efficiency of credit generation and loan performance. I find that it is never optimal to have a perfectly informed Buy Side, as it would constrain high quality credit generation. Furthermore, market discipline is facilitated by high risk free rates and diminished volatility in loan payoffs.

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Wang, Rong. "Essays in corporate finance." online access from Digital Dissertation Consortium, 2006. http://libweb.cityu.edu.hk/cgi-bin/er/db/ddcdiss.pl?3238684.

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Bena, Jan. "Essays on corporate finance." online access from Digital Dissertation Consortium, 2006. http://libweb.cityu.edu.hk/cgi-bin/er/db/ddcdiss.pl?3236700.

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Smith, Jason Matthew. "Topics in corporate finance." online access from Digital Dissertation Consortium, 2006. http://libweb.cityu.edu.hk/cgi-bin/er/db/ddcdiss.pl?3238676.

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Milanez, Anna Catherine. "Essays in Corporate Finance." Thesis, Harvard University, 2013. http://dissertations.umi.com/gsas.harvard:10904.

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Written in the wake of the 2007-08 financial crisis, the following essays explore the nature and implications of firm-level financial distress. The first essay examines the external effects of financial distress, while the second and third essays examine its internal consequences. The first essay investigates the potential contagion effects of financial distress among retail firms using a novel measure of retailers' geographic exposure to one another and, in particular, to liquidated chain stores. The second essay draws on new, hand-collected data on firm-level layoff instances to look into the ways in which financial distress impinges on firms' employment behavior. Building on the second essay, the third essay considers financial market reactions to layoff decisions, particularly those resulting from financial strain. Each essay sheds additional light on the ways in which financial distress propagates through to affect the economy at large. Overall, the picture that emerges is one in which firm-level financial distress appears to be an important factor behind the long and protracted nature of the current economic recovery.
Economics

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Sanzhar, Sergey. "Essays in corporate finance." Thesis, London Business School (University of London), 2005. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.419464.

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Ordõnez-Calaf, Guillem. "Essays in corporate finance." Thesis, University of Warwick, 2017. http://wrap.warwick.ac.uk/104236/.

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Chapter 1 shows how blockholder disclosure thresholds regulate market transparency and, in turn, hedge fund activism. We characterize how disclosure thresholds structure the complex interactions between (a) initial investors in a firm who value the value-enhancing disciplining effects of activism on management, but incur costs trading with activists who know their own value-enhancing potential; (b) activists value who value higher thresholds when establishing equity stakes, but incur costs if high thresholds reduce real investment or discourage managerial misbehavior; and (c) firm managers who weigh private benefits of value-reducing actions against potential punishment if activists intervene. When managerial behavior is sufficiently unresponsive to threats of activism, initial investors and society value tighter disclosure thresholds than activists whenever the costs of activism tend to be low, making the probability of activism insensitive to the level of activist trading profits. In contrast, activists value tighter thresholds when managerial behavior is responsive to potential activism. In Chapter 2 we model a novel coordination problem between the shareholders of a company receiving a takeover over. The willingness of a Board to defend itself from a takeover bid is reduced the greater the proportion of shareholders who sell-out early. Sophisticated shareholders therefore face a coordination problem; and their actions generate a novel feedback loop between the volume of shareholder sales and takeover outcomes. We use global games to derive and analyse the unique threshold- equilibrium. We show that rules which strengthen Boards' discretion to make takeover judgments, or which weaken new shareholders' voting power, encourage shareholders to sell early; and that incentives to politically pressure Boards are greatest in jurisdictions with the greatest respect for shareholder rights. Chapter 3 recognizes that firms’ debt capacity affects their ability to compete in the product market, and the competitiveness of firms in the product market determines their ability to secure debt. I model the endogenous relation between product market competition and financial constraints by characterizing a trade credit transaction where a competitive retailer has incentives to not honour the debt extended by its supplier. With linear input prices, credit rationing arises endogenously in equilibrium if competitive pressure is strong enough. I show that a financially constrained retailer faces a lower price, and it can make higher profits due to its own financial constraints. With non-linear prices, the retailer might never be constrained, even though contractual frictions affect market outcomes.

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Liu, Jian. "Essays on corporate finance." Thesis, University of Exeter, 2018. http://hdl.handle.net/10871/33108.

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This thesis examines the impact of sources of financing on the performance of M&As and the value of firm diversification. Chapter Three examines how sources of financing between corporate cash holdings and bank lines of credit affect the performance of M&As. The evidence shows that the M&As financed by bank lines of credit have higher stock return performance and operating performance than those financed by corporate cash holdings. Firms with higher institutional ownership are more likely to use bank lines of credit as a source of financing in M&As. Moreover, M&As that are financed entirely by bank lines of credit are associated with lower acquisition premiums than those financed by corporate cash holdings. The outperformance is only significant in firms with a lower level of corporate governance and firms with a lower level of bankruptcy risk. Further, the fraction of bank lines of credit used as the source of financing is positively related to the performance of M&As, and the costs associated with bank lines of credit are negatively related to the performance of M&As. The results are consistent with the hypothesis based on agency problems between shareholders and managers. Chapter Four examines how sources of financing between corporate cash holdings, other bank loans, debt issues, and equity issues affect the performance of M&As. The evidence shows that the M&As financed by other bank loans and debt issues are associated with higher announcement returns, higher operating performance, and lower premiums than those financed by corporate cash holdings. Moreover, poorly governed firms benefit from the use of debt financing, and the positive effect of debt financing on M&As is only pronounced among firms with a lower level of bankruptcy risk. The results are consistent with the hypothesis based on agency problems between shareholders and managers. Chapter Five examines how the sources of financing between bank lines of credit and corporate cash holdings in M&As affect the value of firm diversification. The evidence shows that firms financed by bank lines of credit in M&As have a smaller reduction in excess value, more efficient internal resources transfers, and a higher value added by allocation than those financed by corporate cash holdings. Firms with higher institutional ownership are more likely to use bank lines of credit in M&As. Moreover, firms financed by bank lines of credit have a higher value of firm diversification than those financed by corporate cash holdings if they have a lower level of corporate governance and a lower level of bankruptcy risk. The results are consistent with the hypothesis based on agency problems between shareholders and managers.

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Hadlock, Charles J. (Charles James). "Essays in corporate finance." Thesis, Massachusetts Institute of Technology, 1994. http://hdl.handle.net/1721.1/11658.

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Drexler, Alejandro Herman. "Essays in corporate finance." Thesis, Massachusetts Institute of Technology, 2009. http://hdl.handle.net/1721.1/57974.

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Thesis (Ph. D.)--Massachusetts Institute of Technology, Sloan School of Management, 2009.
Cataloged from PDF version of thesis.
Includes bibliographical references (p. 105-106).
This thesis consists of three essays covering topics in empirical corporate finance with an emphasis on banking relationships and its effect on liquidity constraints and business growth. In particular, it investigates the effect of monetary capital and human capital constraints and the role of banking relationships to relax both constraints. The first essay studies how the number of bank relationships affects the liquidity constraints of businesses. The second essay investigates how accounting training can affect the liquidity constraints of entrepreneurs finally the third essay studies the effect of credit insurance as a mechanisms to reduce liquidity constraints. Further details of each essay are included below: In Chapter 1, I empirically explore whether firms have a target for the number of banks from which they borrow, and whether having multiple bank relationships has an impact on firms' liquidity situation. A bank merger in Chile provides a quasi-experiment as it constitutes an exogenous reduction in the number of lenders for firms that were previously borrowing from both merging banks. I find that a significant percentage of firms whose number of bank relationships was reduced by the merger regain their original number of lenders. In particular, firms whose number of bank lending relationships was reduced from 2 to 1 as a result of the merger have a 23% higher probability of adding a new bank lending relationship in the 5 years following the merger compared to similar firms unaffected by the merger.
(cont.) Overall, I find that a reduction in firms' number of bank lenders resulting from the merger reduced firms' access to credit. In particular, a reduction from two to one bank lending relationship on average generated a 14.4% decrease in loan size for the affected companies compared to firms unaffected by the merger. In Chapter 2 (joint work with Antoinette Schoar and Greg Fischer) We conduct a randomized impact evaluation of a training program for micro-entrepreneurs in the Dominican Republic that allows us to identify the effects of cash management and accounting techniques on business practices and business performance. To a randomly-selected fraction of the entrepreneurs enrolled in the training program we also provided on-site accounting and cash management advice. We find that micro entrepreneurs are reluctant to incorporate complex and time-consuming accounting practices into their businesses, however, simpler cash flow management practices were widely adopted by trained entrepreneurs. People who were taught basic cash flow management techniques increased their sales up to 80%. The increase in sales during bad performance periods was substantially more significant than the average increase in sales. This suggests that the most important mechanism through which training improved performance was by reducing the effect of drawbacks in the businesses. Complex accounting techniques only increased sales when combined with on-site advice, most likely because these practices where not consistently implemented when on-site advice was not provided.
(cont.) In Chapter 3 (joint work with Kevin Cowan and Alvaro Yafies), we use Partial Credit Guarantee Schemes in Chile to study how such a government intervention in the financial system can affect the access that entrepreneurs have to the formal financial system. We also explore how these schemes affect the default rates on the guaranteed loans. We find that partial credit guarantee schemes increase the number of loans and the aggregate amount lent to small and medium size businesses. In addition, we find that credit guarantees increase the debt capacity of individual entrepreneurs, holding assets fixed. We also find that Credit Guarantees increase default rates, but the evidence suggests that this result is explained mainly by misalignment of bank incentives rather than moral hazard in the context of client practices.
by Alejandro Herman Drexler.
Ph.D.

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Motta, Gregori Adolfo de 1970. "Essays in corporate finance." Thesis, Massachusetts Institute of Technology, 2001. http://hdl.handle.net/1721.1/8220.

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Thesis (Ph. D.)--Massachusetts Institute of Technology, Dept. of Economics, 2001.
Includes bibliographical references.
This dissertation presents three essays in Corporate Finance. In the first essay, I study managerial incentives in internal capital markets. In particular, I develop a two-tiered agency model to study division managers' incentives within internal capital markets. Division managers try to influence the external capital market's assessment of the firm and the internal capital market's assessment of their divisions in order to increase their level of funding. I show that, as the number of divisions increases, the external capital market's assessment of the firm becomes a public good for division managers, and the internal capital market replaces the external capital market in the provision of managerial incentives. I also show that, while diversified firms have an advantage in allocating resources, this may come at the expense of managerial incentives. Based on the analysis, the paper relates the value of diversification to characteristics of the firm, the industry, the external capital market, and the internal capital market. In the second essay, I propose a model of entrepreneurship in which investors decide whether to become venture capitalists or to form firms and entrepreneurs decide whether to join a firm or seek financing in the venture capital market. The venture capital market allows better matching between investors and entrepreneurs, but this comes at the cost of adverse selection. The model suggests that as a sector matures, innovation takes place first within firms, then in ventures backed by venture capitalists backed ventures, and finally within firms again.
(cont.) In addition, I analyze the relationships between the venture capital market and investors' diversity, investors' scope of expertise and entrepreneurial incentives. The third essay, which is co-authored with Andres Almazan, examines how the trading activities of institutional investors can help to mitigate agency conflicts in corporations. The access of institutional investors to privileged information produces an adverse selection effect that reduces the trading activity of institutional investors and generates a free-rider problem that affects the intensity with which institutional investors wish to "vote with their feet". We also study ownership implications, incentives to acquire information and the interaction of the Wall Street Rule with other mechanisms of governance (i.e. capital structure).
by Adolfo de Motta Gregori.
Ph.D.

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Mahrt-Smith, Jan K. 1966. "Essays in corporate finance." Thesis, Massachusetts Institute of Technology, 1998. http://hdl.handle.net/1721.1/9818.

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Lamont, Owen A. "Corporate finance and microeconomics." Thesis, Massachusetts Institute of Technology, 1994. http://hdl.handle.net/1721.1/11965.

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Gilje, Erik P. "Essays in Corporate Finance." Thesis, Boston College, 2014. http://hdl.handle.net/2345/3878.

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Thesis advisor: Philip E. Strahan
The first essay of this dissertation measures the real effect of increases in local deposit supply on local economic outcomes. To identify this effect, I use exogenous variation in local deposit supply from oil and natural gas shale discoveries. A change in deposit supply should have its largest effect on areas where credit supply frictions are the strongest. I find that the effect is strongest in areas dominated by small banks. The second essay analyzes the investment policies of public and private natural gas firms, and is joint work with Jérôme Taillard. We find that privately held firms are 60% less responsive to natural gas price changes than publicly traded firms. Additionally, we find that private firms do not respond to new shale investment opportunities, whereas public firms do. We believe these results are consistent with private firms having a higher cost of external capital. The third essay empirically tests whether firms increase risk taking activity when they are close to distress due to the risk taking incentives of equity-holders. I find that firms actually reduce risk taking when they are close to distress, and in the years prior to bankruptcy. This evidence suggests that risk reduction incentives may be more important for the average firm as it gets close to distress
Thesis (PhD) — Boston College, 2014
Submitted to: Boston College. Carroll School of Management
Discipline: Finance

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Karagodsky, Igor. "Essays in Corporate Finance." Thesis, Boston College, 2017. http://hdl.handle.net/2345/bc-ir:107406.

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Thesis advisor: Thomas J. Chemmanur
Thesis advisor: Arthur Lewbel
The dissertation aims to investigate the role of asymmetric information in capital structure, investment, compensation of mortgage servicers, and bond and equity returns. Specifically, I evaluate the impact of credit ratings on debt issuance and investment of private and public firms, as well as the effect of asymmetric information on compensation of loan servicers in the mortgage backed securities market. Further, I study the relationship between ratings issued by investor and issuer-paid credit rating agencies and equity analyst recommendations. Finally, I evaluate the effect of the aforementioned signals on bond and equity returns as well as firm leverage and investment decisions. Chapter one in the dissertation is the first study to empirically evaluate the effect of credit ratings on capital structure and investment for private U.S. firms, relative to equivalent public firms. I find that private firms constrain debt issuance and investment by 4.5 and 6.5 percentage points more than public firms, respectively, when their credit ratings are on upgrade or downgrade thresholds. Consistent with these results, private firms that become public through an IPO constrain debt issuance by 10 percentage points before going public, if their ratings are on an upgrade or downgrade boundary. The second chapter studies the impact of asymmetric information between mortgage sellers and servicers on mortgage servicer compensation. We proxy for asymmetric information using the decision to retain mortgage servicing rights, which creates a principal-agent problem between sellers and servicers. Using loan-level data on Fannie Mae-insured, full documentation mortgages, we first find that loans in which sellers retain servicing rights default and foreclose at a significantly lower rate, and lose less in foreclosure than those in which they are not retained. Since it is more costly to service non-performing loans, these ex-post differences in default rates should be reflected in servicer compensation. However, using Fannie Mae MBS pool-level data, we find no difference in servicing fees for pools in which servicing rights are retained relative to pools in which they are not retained. In order to identify the impact of seller/servicer affiliation on servicing fees, we exploit a post-crisis regulatory change which altered the incentive to retain servicing rights for small sellers of MBS relative to large sellers. Finally, in the third chapter, we evaluate the information flows to the stock and bond markets of issuer versus investor-paid rating agencies and equity analysts. Equity analysts' forecasts and ratings assigned by issuer-paid credit rating agencies such as Standard and Poor's (S&P) and by investor-paid rating agencies such as Egan and Jones (EJR) all involve information production about the same underlying set of firms, even though equity analysts focus on cash flows to equity and bond ratings focus on cash flows to bonds. Further, the two types of credit rating agencies differ in their incentives to produce and report accurate information signals. Given this setting, we empirically analyze the timeliness and accuracy of the information signals provided by each of the above three types of financial intermediary to their investor clienteles and the information flows between these intermediaries. We find that the information signals produced by EJR are the most timely (on average), and seem to anticipate the information signals produced by equity analysts as well as by S&P. We find that changes in leverage are associated with lower EJR ratings but higher equity analyst recommendations; further, credit rating changes by EJR have the largest impact on firms' investment levels. We also document an "investor attention" effect (in the sense of Merton, 1987) among stock and bond market investors in the sense that changes in equity analyst recommendations have a higher impact than either EJR or S&P ratings changes on the excess returns on firm equity, while EJR rating changes have a higher impact on bond yield spreads than either S&P ratings changes or changes in equity analyst recommendations. Finally, we analyze differences in bond ratings assigned to a given firm by EJR and S&P, and find that these differences are positively related to the standard proxies for disagreement among stock market investors

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Park, Na Young. "Essays in corporate finance." Thesis, University of Oxford, 2013. http://ora.ox.ac.uk/objects/uuid:7c9167ff-de9b-45df-b3db-295e553bc5fe.

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Prior research on corporations finds that there exists a large unexplained firm-specific heterogeneity in corporate behaviors stemming from the effects of managers. This research identifies managerial personalities and tests their effects on corporate behaviors both experimentally and empirically. First, the effects of managerial personalities on corporate financing decisions are tested using a laboratory experiment with managers in South Korea. The laboratory experimental market is à la Modigliani and Miller but with two frictions, bankruptcy costs and corporate taxation. Leverage choices of managers with particular personality traits are compared against the optimal capital structure computed from the static trade-off theory. The results show that extravert managers choose higher leverage ratios, with the effect being financially meaningful although not statistically significant. Secondly, I identify extravert CEOs and empirically measure its effects on corporate financing choices using Chief Executive Officers’ avocation data and corporate financial data of public, nonfinancial US companies between 1992 and 2011. The results of mean comparisons by group, fixed effects regressions, difference-in-difference regressions, and changes of leverages around CEO turnovers show that extravert CEOs tend to issue risky debt more when accessing external finance and maintain higher leverage ratios than their peers. Thirdly, I test the effects of managerial extraversion on executive compensation. I first offer an empirical compensation model of managerial bargaining power, and then empirically tests the prediction by identifying a personality trait relevant to bargaining power using a novel set of managerial hobbies data. The results provide an evidence that CEO bargaining power has an increasing effect on CEO compensation.

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Arcot, Sridhar Rao. "Essays in corporate finance." Thesis, London School of Economics and Political Science (University of London), 2007. http://etheses.lse.ac.uk/2945/.

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This thesis is divided into three chapters. Even though the three chapters have different aims, they all concerned with corporate finance. The first chapter concerns venture capital and chapters two and three deal with corporate governance. The first chapter deals with a special kind of security used in venture capital contracting -participating convertible preferred stock. Participating Convertible Preferred (PCP) stock is similar to convertible preferred stock but comes with participation rights. Participating rights allow the holder to participate in earnings along with common shareholders. PCPs play an important role in venture capital exits. The two major forms of exit observed in venture capital are initial public offerings (IPOs) and trade sale. Typically, a PCP stake is converted into common equity during an IPO exit but not converted in case of trade sales. We develop a model where VCs can signal the quality of their venture by costly conversion. We show that PCPs have the required features to implement the signalling mechanism. VCs signal by converting their PCP stake into common equity, when they exit from the venture and in the process give up some of their cash flow rights. We show that this can also help in alleviating the problem of entrepreneurial effort. Finally, we derive empirical implications for the two forms of exit. The second and third chapters are concerned with corporate governance. Firstly, we examine the effectiveness of the "comply or explain" approach to corporate governance in the UK. Using a unique database of 245 non-financial companies for the period 1998 - 2004. we perform a detailed analysis of both the degree of compliance with the provisions of the corporate governance code of best practice (Combined Code), and the explanations given in case of non-compliance. We rank the quality of explanations based on their information content. We find an increasing trend of compliance with the provisions of the Combined Code, but also a frequent use of standard and uninformative explanations when departing from best practice. We then use this data to analyse the extent of moral hazard problem in different groups of companies and the role of monitoring in alleviating it. The third chapter extends the above analysis. We use the dataset to identify well- governed companies by accounting for heterogeneity in their governance choices and investigate its association with performance. We find that companies that depart from governance best practice because of genuine circumstances outperform all others and cannot be considered badly-governed. On the contrary, we find that mechanical adherence to best practice does not always lead to superior performance. We thus argue that flexibility in corporate governance regulation plays a crucial role, because companies are not homogenous entities.

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Im, Hyun Joong. "Essays in corporate finance." Thesis, University of Oxford, 2012. http://ora.ox.ac.uk/objects/uuid:2f865e57-ff55-4198-a2b5-2a4f48e3d201.

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This thesis contributes to the empirical literature on how firms meet exceptional financing needs in relation to “investment spikes” or years with unusually large investment activities. In the earlier part of the thesis, I show that the financing of investment during an investment spike is very different from that at other times. I have done this using data for publicly traded US firms over the period 1988 to 2007 and a filtering procedure suggested by Bond et al. (2006). Specifically, external finance, in particular debt finance, is very important in financing investment in years categorized as investment spikes, confirming the findings of Mayer and Sussman (2005). In addition, it has been found that firms with smaller size, lower profitability, more future growth opportunities, fewer tangible assets and more R&D spending tend to use more equity finance in relation to large investment requirements. I also propose the use of the Markov-switching filter to identify investment spikes. In implementing the Markov-switching filter, I apply a first-order two-state Markov-switching mean model to the investment rates de-trended using Hodrick and Prescott's (1997) filter. A Gibbs-sampling procedure is used to produce the marginal posterior distributions of unobserved state variables and model parameters. Among other advantages, this filter allows us to identify multi-year investment spikes. I show that two-year investment spikes identified by the Markov-switching filter are financed quite similarly to single-year investment spikes and that main findings are robust to calendar-time-dependent clustering of investment spikes generated by macroeconomic shocks. In the later part of the thesis, I find there is a positive effect of share liquidity on the propensity to raise debt finance. Using a sample of firm-year observations identified as investment spikes, I find that firms with more liquid shares tend to rely more heavily on debt to finance investment spikes. This result is robust to a control for the effects of firm size and other firm characteristics, the use of various leverage measures, and the use of a whole sample with investment spike characteristics. Another important finding is that firms with more liquid shares tend to have higher target leverage ratios. One interpretation of these results is that information spillovers from the presence of more informative share prices allow firms with more liquid shares to borrow on more favourable terms in normal times, as well as to obtain additional debt finance at lower costs when taking advantage of unusually large investment opportunities.

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Thng, Tiffany Yi Hong. "Essays on corporate finance." Thesis, University of Reading, 2018. http://centaur.reading.ac.uk/80630/.

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This thesis revolves around the theme of corporate finance. The first and last chapters provide the overview and summary respectively. The second chapter examines the impact of gender diversity of executive and non-executive (E&NE) directors on equity underpricing. Hand-collected data on U.S. firms that have issued Initial Public Offerings (IPO) and primary Seasoned Equity Offerings (SEO) show evidence of a positive relation between female E&NE members’ representation and IPO underpricing, but no influence on SEO underpricing. Results are given by the periods before the Sarbanes-Oxley Act as IPO underpricing diminishes due to an increase in information disclosure of firms with more than two female directors. The third chapter examines how and why venture capital-backed firms manage their tone during IPO and SEO. Analysis conducted using the Management Discussion and Analysis section of the prospectuses demonstrates that VC-funded firms are more negative in tone and in order to reduce litigation risks and protect their reputational capital; the effects of tone conservatism are more pronounced when they hire large auditors, receive more analyst coverage, operate in high tech sectors and in industries facing high litigation risk. Negative tone is not related to the conveying of private information as IPO firms that received VC funding experience larger surprise unexpected returns and perform better than non-VC backed offers in the long run. Finally, the fourth chapter studies the impact of the presence of directors who are patent holders of the same firm on firms’ innovation outcomes. Applying a name matching algorithm to the U.S patent database to identify these directors, I document a positive relation between their presence and the intensity of patent applications and citations received by the firms. Despite experiencing stricter regulatory regime after the passage of the Sarbanes-Oxley Act and an increase in the demand for technological related expertise, results remain consistent.

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Nguyen, Anh Ha Phuong. "Essays in Corporate Finance." Diss., Virginia Tech, 2015. http://hdl.handle.net/10919/56977.

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This dissertation comprises two essays in financial economics. They study how firms finance and invest in innovative and intangible assets. The first essay examines the impact of technology spillovers on corporate financing decisions for innovative firms. I find that greater technology spillovers lead to higher leverage in innovative firms. Furthermore, in firms with greater technology spillovers, equity is more costly relative to debt. I find that these financing effects are generated by at least three related mechanisms: information asymmetry, asset redeployability, and equity undervaluation. All three mechanisms lead firms to substitute away from equity and toward debt. The results are robust to exploiting variation in RandD tax credits to identify the causal effect of technology spillovers. The second essay is coauthored with Ambrus Kecskés at York University and Sattar Mansi at Virginia Tech. My coauthors and I enter the long-lived debate about whether stakeholder capital investment increases shareholder value. We argue that long-term investors are natural monitors that can ensure that managers choose stakeholder capital investment to maximize shareholder value. We find that long-term investors increase the value to shareholders of stakeholder capital investment, not as a result of higher cash flow but rather of lower cash flow risk. Also following prior work, we use indexing by investors and the staggered adoption of state laws on stakeholder orientation for identification. Our findings suggest that firms can create value for shareholders by investing in stakeholder capital as long as managers are properly monitored by long-term investors.
Ph. D.

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28

Mukharlyamov, Vladimir. "Essays in Corporate Finance." Thesis, Harvard University, 2016. http://nrs.harvard.edu/urn-3:HUL.InstRepos:33493350.

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This dissertation contains three chapters. In the first chapter, which is joint work with Paul Gompers and Steven Kaplan, we survey 79 private equity (PE) investors with combined assets under management of more than $750 billion about their practices in firm valuation, capital structure, governance, and value creation. Investors rely primarily on internal rates of return and multiples to evaluate investments. Their limited partners focus more on absolute performance as opposed to risk-adjusted returns. Capital structure choice is based equally on optimal trade-off and market timing considerations. PE investors anticipate adding value to portfolio companies, with a greater focus on increasing growth than on reducing costs. We also explore how the actions that PE managers say they take group into specific firm strategies and how those strategies are related to firm founder characteristics. The second chapter, co-authored with Efraim Benmelech, Nittai Bergman, and Anna Milanez, identifies a new channel through which bankrupt firms impose negative externalities on non-bankrupt peers. The bankruptcy and liquidation of a retail chain weakens the economies of agglomeration in any given local area, reducing the attractiveness of retail centers for remaining stores leading to contagion of financial distress. We find that companies with greater geographic exposure to bankrupt retailers are more likely to close stores in affected areas. We further show that the effect of these externalities on non-bankrupt peers is higher when the affected stores are smaller and are operated by firms with poor financial health. In the third chapter, using a novel dataset that allows me to capture the education and career trajectories of over 250,000 employees of 224 bank holding companies, I find that banks with shorter employee tenures and higher fractions of MBAs, top school graduates, and job jumpers performed more poorly during the Great Recession. This relationship is driven by the predisposition of these banks to take on greater risk. These same workforce measures also explain banks’ performance in the 1998 crisis. Taken together, my results suggest that investigating workforce measures could be a step towards quantifying components of risk culture or strategy that contribute to financial institutions’ vulnerability to crisis.
Economics

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Mezzanotti, Filippo. "Essays in Corporate Finance." Thesis, Harvard University, 2016. http://nrs.harvard.edu/urn-3:HUL.InstRepos:33493570.

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Macroeconomic and institutional shocks are important drivers of firms' activities. In chapter one, I examine the role of patent litigation in affecting companies’ innovation. Studying a landmark Supreme Court decision, I show that an improvement in patent enforcement positively affects the innovation activity of corporations. In chapter two, I study the role of private equity in period of large financial turmoil. In the context of the 2008 crisis in United Kingdom, I show that private equity backed companies experienced a lower decline in investment than a control group of similar companies that were not related to private equity. This effect is explained by the ability of private equity to relax the financing constraints of the portfolio companies when access to credit markets is limited. In chapter three, I explore the role of sovereign securities held by banks in the propagation of a financial shock to the economy. Using detailed loan level data matching firms and banks in Italy, the paper finds that the shock to banks' sovereign portfolio caused by the Greek bailout (2010) was passed on to firms through a contraction in credit. The effects of this shock were particularly disruptive for smaller companies.
Business Economics

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30

Mahmud, Syed Ehsan. "Essays in corporate finance." Thesis, University of Nottingham, 2018. http://eprints.nottingham.ac.uk/51598/.

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This thesis comprises three essays in corporate finance, with a focus on corporate risk management and debt diversity. The first chapter examines the impact of derivatives use on the cost of equity for German non-financial firms. Using hand-collected data on derivatives use for a sample of German non-financial firms, I find that user firms have a 306 basis point lower cost of equity than non-users. This reduction in the cost of equity of users is attributable to their lower market, size, and value risk factor exposures. The observed negative relation between derivatives use and the cost of equity remains robust to specifications that account for potential endogeneity arising from a firm's derivatives hedging and capital structure decisions. I find that the reduction in the cost of equity is largest for smaller firms and for firms making use of foreign currency and interest rate derivatives. Moreover, new derivatives users experience a significant reduction in the cost of equity capital in the first year of adoption. In the second chapter, I empirically examine the impact of derivatives use on firms' distress risk using hand-collected data from the annual reports of German non-financial firms. The time period of this empirical analysis spans from 1999 to 2010. I find that derivatives using firms have lower distress risk. I use Heckman's two-stage treatment effect model to account for the unobservable factors that could affect the decision of the firm to use derivatives. Even after accounting for the unobservable factor bias, the results confirm that hedging reduces financial distress risk significantly. Moreover, I find that firms using foreign currency and interest rate derivatives can benefit via the reduction in financial distress risk. Using a comprehensive data for 46 countries firm's choice of the debt instrument, I find that firms use debt from many sources. Firms those sources debt from only one source or more specifically from the Bank, significantly lower their investment during the financial crisis. However, the firms those source debt from public market shows insignificant negative impact during the financial crisis. Later, I find that during the financial crisis time firms with higher financial distress exhibit negative impact on the bank debt. Whereas, firms with higher financial distress during the financial crisis shows a positive association with public debt. Findings of this study suggest that during the crisis period firms with access to the bond market issue bonds to substitute bank debt. However, this substitution is not one-for-one, so the firms experience deleveraging and consequently underinvestment.

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Yu, Jingbo. "Essays on Corporate Finance." Diss., Temple University Libraries, 2016. http://cdm16002.contentdm.oclc.org/cdm/ref/collection/p245801coll10/id/405229.

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Business Administration/Finance
Ph.D.
Much of the literature on investment-cash flow sensitivity examines only manufacturing firms, uses capital expenditure as a measure of investment, and uses operating cash flow as a measure of internal funds. Over the last several decades, due to outsourcing, the importance of manufacturing firms in the U.S. economy and the importance of capital expenditure as the primary type of investment have declined. The introduction of the Nasdaq exchange allowed smaller, less-profitable, and more human-capital intensive firms to become public, lowering the importance of operating cash flow as the primary source of internal funds. To take into account these trends, I introduce three innovations to the prior literature. (i) I include non-manufacturing firms. (ii) I broaden the definition of investment to include R&D and SG&A (which are both investments in human capital required at the innovation and marketing stages of the product life cycle), cash investment in subsidiaries and joint ventures, and the cash used to finance acquisitions. (iii) I broaden the definition of internal funds to include cash holding available at the beginning of the year. Empirically, non-manufacturing firms are more capital intensive than non-manufacturing firms, and hence excluding these firms could understate the true investment-cash flow sensitivity. Capital expenditure understates true investment, and hence excluding other forms of investment could also understate the true investment-cash flow sensitivity. Finally, operating cash flow understates true internal funds, and excluding cash holdings could overstate the true investment-cash flow sensitivity. The net effect of my proposed changes on the sensitivity is, therefore, an empirical issue. Overall, I document that investment is highly sensitive to cash flow––it is 570% higher than what I estimate using the definitions in prior literature––and this higher sensitivity is primarily caused by broadening the definition of investment. Further, though the sensitivity declines over time, the decline is modest and, importantly, the sensitivity is still economically and statistically significant in recent years. I identify three factors that have contributed to this decline: (i) the decline in Fed Funds rate (ii) changing firm characteristics and, (iii) changing firm composition. The changing characteristics and changing composition of firms are possibly due to macro trends such as outsourcing and the introduction of Nasdaq exchange. While outsourcing reduced firms’ capital expenditure, the introduction of the Nasdaq facilitated listing of less profitable and more human-capital intensive firms. Such firms are likely to invest more in R&D and SG&A and are less reliant on operating cash flow for their investment. These macro trends altered firms’ investment and cash flow mix, specifically decreasing the investment-cash flow ratio, which, in turn, contributed to the decrease in investment-cash flow sensitivity.
Temple University--Theses

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Ottolenghi, Ezgi Hallioglu. "Essays On Corporate Finance." Diss., Temple University Libraries, 2017. http://cdm16002.contentdm.oclc.org/cdm/ref/collection/p245801coll10/id/440584.

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Business Administration/Finance
Ph.D.
This dissertation, empirically examines ownership structure and its impacts on shareholder wealth. In the first chapter I examine the relation between ownership structure and M&A target selection when family firms purse acquisitions, focusing on the factors that influence family selection of targets. My results indicate that family firm acquirers select targets that are smaller and have low growth potential. I focus on short- and long-run stock market reactions to merger and acquisition announcements of family versus nonfamily bidders and their associated targets. I find that acquirers with family ownership have better cumulative average abnormal returns in the short run and higher buy-and-hold abnormal returns up to one year after the acquisition. Family firms also take a greater share of the merger synergy than do nonfamily bidders while the overall merger synergy is invariant to ownership structure. These results suggest that family firms pick different targets than nonfamily firms and benefit minority shareholders when they acquire. This chapter provides evidence that family ownership does not destroy value during M&A transactions; instead, the analysis indicates that family owners appear to choose better targets. In the second chapter I examine firms with dual class structures. Firms with limited voting shares, dual class firms, persist over time in spite of the widespread view that they embody a “corruption of the governance system” (Calpers, 2011). I find that founders and their heirs control 89% of dual class firms, making it difficult to disentangle family control and voting rights. I document that family owners hold 30% greater economic exposure in dual class firms than in single class family firms. Investors place lower values on both single and dual class family firms relative to non-family firms. In contrast, non-family dual class firms exhibit a 19% premium relative to single class firms. Further analysis shows that 8 industries contain 58% of these limited voting share firms - industries that require high brand maintenance and intangible assets. Strikingly, I find that outside shareholders of dual class firms earn excess returns of about 350 basis points per year relative to single class nonfamily firms. Additional tests reveal that institutional investors hold more of the floated equity of dual class family firms than found in single class nonfamily firms. Exploring a succession risk premium perspective, I discover these lower values and greater excess returns primarily occur in descendent-controlled firms. Overall, my analysis suggests that limited voting shares provide an important mechanism used by controlling shareholders that arise in industries with specific characteristics.
Temple University--Theses

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Adhikari, Hari Prasad. "Essays on Corporate Finance." Scholar Commons, 2014. https://scholarcommons.usf.edu/etd/5165.

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We compare acquisition activity, method of payment choice, and the long-run value implications of acquisitions by newly public single-class and dual-class US companies. Our results show that dual-class IPO firms make relatively more acquisitions in innovative industries and are less likely to pay with stock as compared to single-class IPO firms. We provide evidence that the reluctance of dual-class firms to pay with stock is not related to the insiders' cash-flow rights but it is significantly positively related to the insiders' voting rights and wedge between the insiders' voting rights and cash-flow rights. We also find that acquiring dual-class IPOs perform better in the long-run than acquiring single-class IPO firms, and the better performance is mainly due to acquisitions in innovative industries. The results suggest that insiders of dual-class IPOs try to retain control during subsequent M&A activities. The governance structure in such firms allows them to make investments in high risk projects that enhance shareholder value in the long-run. Next, we examine the acquisition performance of family and non-family firms in the S&P 500 universe. Using style-adjusted and market-adjusted buy-and-hold returns (BHAR) and controlling for firm and merger characteristics, we find that the post-merger performance of family firms is significantly better than that of non-family firms. In particular, the mean one-year style-adjusted buy-and hold abnormal return is around 18% higher for family acquirers than for non-family acquirers. Further, contrary to the argument that founding family members make value-destroying diversifying acquisitions to minimize the risk of their personal portfolio, we do not find that family firms lose value in diversifying acquisitions. This result is consistent with Stein's model (1997) showing that diversification helps to reduce the cost of capital of the firm.

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Yang, Keyang. "Essays on corporate finance." Diss., University of Iowa, 2019. https://ir.uiowa.edu/etd/7049.

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In this dissertation, I examine two main topics in corporate finance: executive compensation and corporate investment. First, in the chapter titled “Import Penetration and Executive Compensation”, we investigate the impact of import penetration on executive compensation. We find that import penetration reduces executives’ total compensation, stock grants, and opportunistic grant timing, suggesting that competition mitigates agency problems and the need for conventional alignment mechanisms. Furthermore, we show that import penetration increases option grants and option duration, thus incentivizing more innovation and risk-taking. Second, I study the relationship between entrenchment and corporate investment. In the chapter titled “Entrenchment, Managerial Shirking, and Investment”, I find that entrenchment reduces capital expenditures, R&D, and productivity, weakens a firm’s competitiveness in the product market, and diminishes firm value. These findings are consistent with the shirking hypothesis that entrenchment enables managers to evade the responsibilities of overseeing investment projects.

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Ghanadzadeh, Moshen. "Essays on corporate finance." Thesis, Cergy-Pontoise, Ecole supérieure des sciences économiques et commerciales, 2022. http://www.theses.fr/2022ESEC0003.

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Ma thèse porte sur le rôle de l'environnement réglementaire dans la gouvernance des entreprises. Je me concentre en particulier sur deux domaines principaux: (1) les réformes des règles de gouvernance et leur impact sur le vote des actionnaires, et (2) la structure de propriété et de contrôle des entreprises familiales. Les deux premiers chapitres concernent le premier domaine, et le troisième chapitre concerne le deuxième domaine.Dans le premier chapitre, j'enquête sur la manière dont une récente disposition du code de gouvernance d'entreprise du Royaume-Uni, obligeant la direction à communiquer avec les actionnaires après avoir affronté une forte opposition lors des votes, affecte la valeur des actions. Dans le deuxième chapitre, j'examine la capacité et la volonté des actionnaires à faire la distinction entre le vote consultatif sur la rémunération des dirigeants et un vote contraignant imposé récemment (en 2013) par le gouvernement britannique. Dans le troisième chapitre, nous fournissons la première description des structures de contrôle sur les entreprises utilisant les données du Registre britannique des bénéficiaires effectifs, qui a été adopté suite à une directive de l'UE visant à lutter contre l'évasion fiscale
This thesis focuses on the role of the regulatory environment in corporate governance. In particular, I focus on two main areas: (1) Regulatory Reforms and Shareholder Voice, and (2) Ownership Structure and Corporate Control. The first two chapters relate to the first area and the third chapter to the second. In the first chapter, I investigate whether and how a recent provision of the UK Corporate Governance Code, forcing management to communicate with shareholders after facing high voting dissent, affects shareholder value. In the second chapter, I examine shareholders’ ability and willingness to distinguish between the advisory Say on Pay and the binding vote on pay imposed by the UK government in 2013. Finally, the third chapter provides the first description of ultimate ownership structures using data from the UK Beneficial Ownership Register, enacted following an EU-wide directive to combat tax evasion

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Toscano, Francesca. "Essays in corporate finance." Doctoral thesis, Universita degli studi di Salerno, 2015. http://hdl.handle.net/10556/1917.

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2012 - 2013
This project includes three essays in Corporate Finance. The rst part of the thesis investigates the relationship between Financial Development and Economic Growth for a set of 77 countries over the period 1960-1995. Borrowing the methodology suggested by Beck, Levine and Loayza (2000), I study the previous relationship using a cross-country regression model and a panel technique. My results suggest that Private Credit, de ned as credits by nancial intermediaries to the private sector divided by GDP, has a positive impact over Economic Growth. My ndings also point out that Economic Growth is positively a¤ected by openness to trade and average years of schooling. The relationship between Financial Development and Economic Growth is independent of the degree of nancial development as well as the initial level of income of a given country. Di¤erently from other papers, I can study whether the nance-growth nexus is persistent over time: using a similar dataset for an extended period, 1960-2010, I show that the impact of Private Credit over Growth is signi cative also in the most recent past. The second part of the thesis explores the stock-prices comovements for a set of 7 countries over the period 2000-2014. The study explores how the volatilities and correlations in one coun- try, mainly Italy, are a¤ected by the volatilities and correlations in another country. Di¤erently from other papers, I focus on a larger set of countries and on a sample period that allows to distinguish between the Pre Great Recession period and the Post Great Recession period. The analysis is conducted by considering several GARCH models, for the volatility comovements, and MGARCH models, for the correlation comovements. The best GARCH model in my set- ting is the EGARCH model which provides information on the impact of positive innovations on volatility. Among the MGARCH models, I focus on the CCC model and the DCC model. My results point out that the strenght of the relationship among countries is ampli ed after a crisis event, which is consistent with most of the "contagion" literature. The last part of the thesis analyzes the relationship between long-term debt and average investment during the 2007 crisis. Very few papers have analyzed the real e¤ects of debt ma- turity. To analyze the impact of the debt structure on rms performance I use a matching approach methodology (Abadie-Imbens estimator) which allows to distinguish between a treat- ment group and a control group: the rst one refers to the group of rms whose long-term debt is maturing at the time of the crisis, while, on the other hand, the control group refers to those rms that are out of the treatment but have similar rm characteristics like cash ow, size, Q, cash holdings and long-term leverage. My results show that rms with debt maturing during the period of the crisis experience a much more pronounced fall in investment. Results are tested using a Parallel Trend Test which allows to better de ne whether the results are driven by the maturity argument or not. [edited by author]
XII n.s.

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37

FRACASSI, ELEONORA. "Essays in corporate finance." Doctoral thesis, Luiss Guido Carli, 2017. http://hdl.handle.net/11385/201142.

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This dissertation bundles three essays in the area of corporate finance. It deals with two main issues: capital structure decisions in financially distressed firms and the role of the investor identity on the acquisition performance. The first essay is a literature review about equity issues as a means to recover from financial distress. The study provides, firstly, an overview of the extant literature on capital structure theory and financial distress in order to deepen the understanding of how a firm can resolve its financial constraints. On the one hand, some of the most important contributions in capital structure theory are reviewed with a specific focus on equity issues. On the other hand, financial distress is discussed examining the main solutions adopted by distressed firms in order to reorganize (i.e. formal in court proceedings and private reorganizations). Finally, it is discussed a possible gap in capital structure theory and financial distress literature arguing that most of previous research, in the attempt to explain the occurrence of equity issues, just focused on firm specific determinants. With the aim to provide a further perspective for future research, the study examines a series of contributions that consider how capital structure decisions can be affected by external determinants related to the legal system in which the firm operates. These works are aggregated to the discussion in order to suggests a conceptual framework suitable to explain equity issues in financial distress through the integrations of capital structure theory with Law literature. The second essay is a theoretical and empirical investigation on equity issues in distressed firms. Specifically, I explore the effectiveness of equity issue as a means to recover from distress. I argue the relationship between equity issues and recovery controlling for the legal system in which the firm operates. Central to the thesis is the role of the Bankruptcy Law on the firm’s propensity to issue equity which varies according to the legal protection of the creditors. Controlling for this exogenous factor allows me to explain how recovery is affected by the issuance of equity. This study contributes to both capital structure theory and financial distress literature providing evidence on how the capital structure decision to issue equity can drive the process of firm’s recovery from distress. Then, it suggests an alternative explanation of the decision to issue equity in distress arguing the relevance of the legal system as a determinant of this choice. The hypotheses are tested on a sample of 70 firms that recovered from financial distress in 49 countries. The sample is divided in to 34 distressed firms who recovered issuing equity and 36 firms who recovered without an equity issue. Results show that the legal system matters for understanding the occurrence of equity issues in distress; they are more likely to occur in countries with a debtor friendly legal system. Conditionally to the incidence of the law on the firm’s choice to issue equity, equity issues positively affect the firm’s recovery from distress. The third study is a theoretical and empirical examination about the relationship between the buyer identity and the acquisition performance. This relationship is argued advancing and testing the idea that different identities of the buyer, specifically strategic or financial investors, have different effects on the performance of the target firm after an acquisition. We suggest that the different resource and knowledge base of the buyer, i.e. its identity, drives the target performance: on the one hand it affects the innovative output and so the patenting activity of the target, on the other hand it has an impact on the economic results of the acquired firm. This study contributes to literature on M&A by providing a complementary explanation of M&A performance, unraveling how the identity of the buyer can play a significant role in driving post-acquisition performance. Moreover, it suggests a more complete analysis of the deal’s output considering both the innovative and the economic output. The study relies on a sample of 234 acquisitions in any industry completed between 2006 and 2011. Results show that the identity of the buyer has a direct effect on the performance of the target firm after the acquisition. The results also highlight how identity has a different impact regarding to the different measures of performance: whilst the strategic buyers, moved by the interest for additional knowledge and technology, tend to integrate their capabilities with target fostering innovative processes and improving the innovative performance, the financial buyers use to undertake deals in order to maximize their profits at the expense of the innovative performance. Different evidences emerge for the economic performance of the involved firm which is positively affected by financial buyers respect to strategic ones since they induce the target firm to undertake highly risky and long term investments in R&D. The two papers of this dissertation have been presented at international Conferences on management such as EURAM 2014 (European Academy of Management) and BAM 2015 (British Academy of Management). The papers will be submitted to journals soon.

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Colombo, Jéfferson Augusto. "Essays in empirical corporate finance and macro-finance." reponame:Biblioteca Digital de Teses e Dissertações da UFRGS, 2016. http://hdl.handle.net/10183/158172.

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Esta tese é composta de três ensaios empíricos sobre finanças corporativas e macrofinanças, todos eles aplicados ao Brasil. O primeiro mostra como uma mudanças tributárias no nível do acionista podem afetar as decisões financeiras das empresas investidas, através da estrutura de propriedade. Os resultados sugerem que as empresas ajustam suas políticas financeiras para minimizar os gastos tributários totais (nível do acionista mais nível da firma). No segundo artigo, analisa-se a relação entre o investimento estrangeiro em carteira (EFPI) e o investimento agregado brasileiro. Os resultados mostram que o EFPI tem um impacto marginal positivo na formação bruta de capital fixo, mas que essa relação é condicionada a fatores institucionais, tal como o grau de intervenção do governo no mercado de crédito. Finalmente, no terceiro ensaio, mostro que um aumento exógeno dos preços dos ativos colateralizáveis imobiliários pode ter consequências positivas no financiamento e investimento das empresas. As firmas aparentemente mais beneficiadas pelo ciclo expansionista de crédito observado no Brasil durante os anos 2000 foram justamente aquelas com menor grau de tangibilidade, potencialmente fora do mercado de crédito no período anterior.
In this thesis, I present three empirical essays on corporate finance and macro-finance applied to Brazil. In the first one, I show that an exogenous tax change at the investor level can have real effects on the invested firms’ behavior. My evidence suggests that treated firms adjust their financial policies considering substitute financial instruments and seeking to minimize overall tax spending. In the second paper, I analyze the role of equity foreign portfolio investment (EFPI) on affecting aggregate investment. The results show that EFPI has a marginal positive impact on the gross capital formation, but this relation seems to be contingent on institutional factors such as government intervention in credit markets. Finally, in the third essay, I show that an exogenous increase in collateral prices can have positive consequences on firms’ financing and investment decisions. The credit expansion registered in Brazil in the middle of the 2000’s seem to have alleviated financial constraints most for smaller, less tangible firms, which probably were (at least partially) out of the credit market before the boom.

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Martin, Thorsten. "Essays in Empirical Corporate Finance." Thesis, Université Paris-Saclay (ComUE), 2018. http://www.theses.fr/2018SACLH006/document.

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Le premier chapitre étudie comment l'introduction d'un marché à terme de l'acier affecte les producteurs d'acier et leurs clients. Le deuxième chapitre demande comment les tarifs d'importation dans les industries en amont affectent les incitations à investir des entreprises en aval. Le troisième chapitre étudie comment la propriété managériale affecte la performance dans le secteur des fonds communs de placement
The first chapter studies how the introduction of a futures market for steel affects steel producers and their customers. The second chapter asks how import tariffs in upstream industries affect downstream firms’ incentives to invest. The third chapter studies how managerial ownership affects performance in the mutual fund industry

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Mohseni, Mahdi. "Three essays in corporate finance and corporate governance." Thesis, Boston College, 2015. http://hdl.handle.net/2345/bc-ir:104372.

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Thesis advisor: Philip Strahan
In my first essay, I find that CEOs with more control over the firm have smaller compensation packages and are less likely to have severance contracts. Despite lower pay, these CEOs have longer tenure and their boards' replacement decisions are less sensitive to their performance, which is consistent with the view that there is a trade-off between pay and dismissal risk. To mitigate endogeneity concerns, I use divorce as an exogenous shock to CEO equity ownership, and find that following a divorce, turnover risk goes up and pay increases significantly. My findings highlight the importance of turnover risk in studying executive compensation. The second essay shows that staggered boards are associated with higher private benefits of control. We find that companies de-staggering their boards experience a decrease in control premiums. Using two court rulings in 2010 with opposite decisions on the effectiveness of staggered boards, we show that our findings are not driven by the endogeneity of the corporate control. Finally, we find evidence that the stock market reactions to the court rulings are negatively associated with the changes in control premium. Overall, our results suggest that staggered boards decrease shareholder value via entrenchment. In my third essay, I study the impact of accounting practices on debt renegotiations and covenant violations. Firms that recognize losses in a timelier manner (i.e., have more conservative accounting practices) have less slack at any given time and are more likely to violate loan covenants. But the consequences of a covenant violation by such firms differ from those of firms with aggressive accounting practices. I also find that firms with more conservative accounting practices are more likely to renegotiate their loans with creditors
Thesis (PhD) — Boston College, 2015
Submitted to: Boston College. Carroll School of Management
Discipline: Finance

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He, Ting. "Three essays in corporate finance and corporate governance." HKBU Institutional Repository, 2011. http://repository.hkbu.edu.hk/etd_ra/1230.

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Hong, Jieying. "Essays on corporate finance theory and behavioral asset pricing." Thesis, Toulouse 1, 2013. http://www.theses.fr/2013TOU10018/document.

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Cette thèse se compose de trois documents. Les deux premiers articles étudient comment les entreprises devraient être structurés de manière à faciliter leur accès aux fonds quand il y a des conflits d'agence entre les emprunteurs (entreprises) et les prêteurs (les investisseurs). Chapitre 1 étudie la relation entre la portée de l'entreprise et des contraintes financières. Chapitre 2 utilise une approche contractuelle optimale pour analyser le développement d'un produit innovant par des alliances stratégiques des deux entreprises. Le chapitre 3 analyse si l'expérience des commerçants peut réduire leur propension à spéculer ?
This thesis consists of three self-contained papers. The first two papers study how firms should be structured to facilitate their access to funds in the face of agency conflicts between borrowers (firms) and lenders (investors). Chapter 1 studies the relationship between firm scope and financial constraints. Chapter 2 uses an optimal contracting approach to analyze the development of an innovative product through strategic alliance by an entrepreneur and an incumbent. Chapter 3 analyzes whether traders’ experience reduce their propensity to speculate?

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Gattringer, Christian. "Pensionsrisikomanagement im Corporate Finance Kontext." St. Gallen, 2008. http://www.biblio.unisg.ch/org/biblio/edoc.nsf/wwwDisplayIdentifier/03605946002/$FILE/03605946002.pdf.

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Minnick, Kristina Leigh. "Empirical essays in corporate finance." College Park, Md. : University of Maryland, 2005. http://hdl.handle.net/1903/2860.

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Thesis (Ph. D.) -- University of Maryland, College Park, 2005.
Thesis research directed by: Business and Management. Title from t.p. of PDF. Includes bibliographical references. Published by UMI Dissertation Services, Ann Arbor, Mich. Also available in paper.

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Bång, Joakim. "Essays in empirical corporate finance." Doctoral thesis, Handelshögskolan i Stockholm, Institutionen för Finansiell ekonomi, 2011. http://urn.kb.se/resolve?urn=urn:nbn:se:hhs:diva-1283.

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In the first of the three chapters in this thesis, the effects of overlapping board directorships on executive compensation are analyzed. In particular the possibility of more or less explicit agreements to reciprocally increase compensation levels, or the possibility that the personal relationships of board members and CEOs determine compensation levels are examined, with suggestive results. The second chapter documents the existence of economically important halo effects in the Australian consumer real estate marker. The final chapter evaluates the effects of blackout (or silent) periods in the UK on corporate insider behavior. Joakim Bång's main research interests are in empirical corporate finance, and in particular in executive compensation, corporate governance and behavioral finance. He is currently teaching at the University of New South Wales in Sydney, Australia.
Diss. Stockholm : Handelshögskolan i Stockholm, 2011

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Kusnadi, Yuanto. "Two essays on corporate finance /." View abstract or full-text, 2007. http://library.ust.hk/cgi/db/thesis.pl?FINA%202007%20KUSNAD.

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Pan, Carrie H. "Two essays in corporate finance." Columbus, Ohio : Ohio State University, 2007. http://rave.ohiolink.edu/etdc/view?acc%5Fnum=osu1186166338.

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Low, An Chee. "Two essays in corporate finance." Columbus, Ohio : Ohio State University, 2007. http://rave.ohiolink.edu/etdc/view?acc%5Fnum=osu1186598647.

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Zhang, Ling. "Two essays in corporate finance." online access from Digital Dissertation Consortium, 2006. http://libweb.cityu.edu.hk/cgi-bin/er/db/ddcdiss.pl?3240978.

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Rehman, Zahid ur. "Essays in empirical corporate finance." online access from Digital Dissertation Consortium, 2007. http://libweb.cityu.edu.hk/cgi-bin/er/db/ddcdiss.pl?3298766.

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Dissertations / Theses on the topic 'Corporate Finance'

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