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Author: Senay Agca Publisher: ISBN: Category : Languages : en Pages : 32
Book Description
We examine the impact of the agency conflicts of debt on firm financing decision. Consistent with the hypothesis that firm financing policy is determined by the tradeoff between the market for corporate control (takeover defenses) and managerial opportunism, we find that managerial equity ownership and its interaction with takeover defenses affect firm financing decisions. Specifically, we find that (i) firms with large takeover defenses carry high levels of debt, (ii) firms with large managerial ownership operate at high levels of debt unless the firm has a large number of takeover defenses, in which case these managers reduce debt levels, and (iii) the relation between leverage and takeover defenses becomes insignificant when we control for the interaction between these defenses and managerial ownership. Further testing reveals that while bond covenants have a role in reducing the agency conflicts related to the cost of debt financing, they have an insignificant role related to firm leverage. Overall, the evidence suggests that a two-dimensional aspect of governance that includes the interaction between managerial ownership and takeover defenses is imperative in understanding the impact of the agency costs on firm financing decisions.
Author: Senay Agca Publisher: ISBN: Category : Languages : en Pages : 32
Book Description
We examine the impact of the agency conflicts of debt on firm financing decision. Consistent with the hypothesis that firm financing policy is determined by the tradeoff between the market for corporate control (takeover defenses) and managerial opportunism, we find that managerial equity ownership and its interaction with takeover defenses affect firm financing decisions. Specifically, we find that (i) firms with large takeover defenses carry high levels of debt, (ii) firms with large managerial ownership operate at high levels of debt unless the firm has a large number of takeover defenses, in which case these managers reduce debt levels, and (iii) the relation between leverage and takeover defenses becomes insignificant when we control for the interaction between these defenses and managerial ownership. Further testing reveals that while bond covenants have a role in reducing the agency conflicts related to the cost of debt financing, they have an insignificant role related to firm leverage. Overall, the evidence suggests that a two-dimensional aspect of governance that includes the interaction between managerial ownership and takeover defenses is imperative in understanding the impact of the agency costs on firm financing decisions.
Author: John Fred Weston Publisher: ISBN: Category : Business & Economics Languages : en Pages : 728
Book Description
The takeover process - The legal and regulatory framework - Accounting for M & As - Tax planning options - Strategic processes - Theories of mergers and tender offers - A chemical industry case study - Measurement of abnormal returns - The timing of merger activity - Empirical tests of M & A performance - Alternative approaches to valuation - Foundations of DCF spreadsheet valuation - Derivation of revenue growth valuation formulas - Derivation of investment opportunity valuation formulas - Increasing the value of the organization - Restructuring and divestitures - Restructuring organization and ownership relationships - Financial restructuring - Joint ventures and alliances - ESOPs and MLPs - Going private and leveraged buyouts - International takeovers and restructuring Share repurchade - Takeover defenses - Corporate governance and performance - Implementation and management guides for M & As.
Author: Donald DePamphilis Publisher: Academic Press ISBN: 0123854857 Category : Business & Economics Languages : en Pages : 784
Book Description
Two strengths distinguish this textbook from others. One is its presentation of subjects in the contexts wherein they occur. The other is its use of current events. Other improvements have shortened and simplified chapters, increased the numbers and types of pedagogical supplements, and expanded the international appeal of examples.
Author: Sanjai Bhagat Publisher: MIT Press ISBN: 9780262524384 Category : Business & Economics Languages : en Pages : 138
Book Description
An investigation of the relationships among takeovers, takeover defenses, management turnover, corporate performance, corporate capital structure, and corporate ownership performance.
Author: Harry DeAngelo Publisher: Now Publishers Inc ISBN: 1601982046 Category : Corporations Languages : en Pages : 215
Book Description
Corporate Payout Policy synthesizes the academic research on payout policy and explains "how much, when, and how". That is (i) the overall value of payouts over the life of the enterprise, (ii) the time profile of a firm's payouts across periods, and (iii) the form of those payouts. The authors conclude that today's theory does a good job of explaining the general features of corporate payout policies, but some important gaps remain. So while our emphasis is to clarify "what we know" about payout policy, the authors also identify a number of interesting unresolved questions for future research. Corporate Payout Policy discusses potential influences on corporate payout policy including managerial use of payouts to signal future earnings to outside investors, individuals' behavioral biases that lead to sentiment-based demands for distributions, the desire of large block stockholders to maintain corporate control, and personal tax incentives to defer payouts. The authors highlight four important "carry-away" points: the literature's focus on whether repurchases will (or should) drive out dividends is misplaced because it implicitly assumes that a single payout vehicle is optimal; extant empirical evidence is strongly incompatible with the notion that the primary purpose of dividends is to signal managers' views of future earnings to outside investors; over-confidence on the part of managers is potentially a first-order determinant of payout policy because it induces them to over-retain resources to invest in dubious projects and so behavioral biases may, in fact, turn out to be more important than agency costs in explaining why investors pressure firms to accelerate payouts; the influence of controlling stockholders on payout policy --- particularly in non-U.S. firms, where controlling stockholders are common --- is a promising area for future research. Corporate Payout Policy is required reading for both researchers and practitioners interested in understanding this central topic in corporate finance and governance.
Author: John Fred Weston Publisher: ISBN: Category : Business & Economics Languages : en Pages : 808
Book Description
This book presents recent literature on corporate mergers, acquisitions, takeovers, restructuring, and corporate governance as well as discussions of valuation, cost of capital, and strategic financial planning. This book discusses how M&As fit into a company's long-term strategy and how restructuring can unlock values in a company. It presents strategies designed to increase a firm's value: i.e., joint ventures, ESOPs, LBOs, share repurchases, and international strategies. The book also provides guides on selecting M&As to strengthen a company or increase its value. The second edition of Takeovers, Restructuring and Corporate Governance has been revised to include the latest empirical data and literature. It also now includes 38 important recent case studies: i.e., QVC-Paramount; Boeing-McDonnell Douglas; Ciba-Geigy-Sandoz, Disney-Cap Cities-ABC, and Time Warner-Turner.
Author: Roberta Romano Publisher: American Enterprise Institute ISBN: 9780844738369 Category : Business & Economics Languages : en Pages : 180
Book Description
This is a study of the structure of American corporate law, which combines economic analysis with empirical insights to produce a number of policy insights. It is suitable for anyone studying corporate law, securities regulation, comparative company law or federalism.
Author: Senay Agca
Author: Senay Agca
Author: John Fred Weston
Author: Donald DePamphilis
Author: Sanjai Bhagat
Author: Alon Brav
Author: Harry DeAngelo
Author: John Fred Weston
Author: Federal Deposit Insurance Corporation
Author: Roberta Romano
Author: Roy C. Smith