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Showing papers in "Journal of Corporate Finance in 2013"


Journal ArticleDOI
TL;DR: In this article, the authors evaluated the performance of dynamic panel models on corporate finance data, in which the dependent variable may be clustered or censored and independent variables may be missing, correlated with one another, or endogenous.

462 citations


Journal ArticleDOI
TL;DR: This paper found that stock price synchronicity and crash risk are negatively related to the firm's ownership by dedicated institutional investors, which have strong incentive to monitor due to their large stake holdings and long investment horizons.

415 citations


Journal ArticleDOI
TL;DR: This paper investigated the role of national culture in corporate risk-taking and found that individualism has a positive and significant association, whereas uncertainty avoidance and harmony have negative and significant associations, with corporate risk taking.

413 citations


Journal ArticleDOI
TL;DR: Li et al. as discussed by the authors examined the value of political capital in the Chinese IPO market and found a positive relationship between a politically connected executive and the probability of IPO approval of entrepreneurial firms.

167 citations


Journal ArticleDOI
TL;DR: In this paper, the authors examine the relationship between the premium paid in acquisitions and the target size and find that the overpayment potential is lower in acquisitions of large targets, implying that target size may proxy, among others, for the unobserved complexity inherent in large deals.

154 citations


Journal ArticleDOI
TL;DR: In this paper, the authors investigate whether business groups in China act as internal capital markets, in an environment that is characterized by a high level of government intervention, a weak legal system, and an underdeveloped financial market.

137 citations


Journal ArticleDOI
TL;DR: Li et al. as mentioned in this paper investigated the performance and R&D activities of VC-backed and non-VC-backed Chinese manufacturing firms during the period 1998 to 2007, and found that VC-based firms outperform non-vanceto-backed firms in terms of profitability, labor productivity, sales growth, and investment, and that the differences in profitability and labor productivity are significantly magnified after VC entry.

135 citations


Journal ArticleDOI
TL;DR: In this paper, the authors studied dividend payouts of 462 U.S. bank holding companies before and during the 2007-09 financial crisis and found that regulatory pressure was ineffective in limiting dividend payout by under-capitalized banks before the financial crisis.

112 citations


Journal ArticleDOI
TL;DR: This article found that suppliers in important customer relationships hold more cash on average than suppliers that are not in important relationships and that suppliers' cash holdings increase proportionately with the importance of their customer relationships, indicating that firms manage cash and debt for different purposes.

105 citations


Journal ArticleDOI
TL;DR: The authors empirically examined business starts, deaths, venture capital and patents in relation to U.S. public policy and found that lower levels of labor frictions and higher levels of SBIR awards are associated with more business starts and higher level of venture capital per population.

90 citations


Journal ArticleDOI
TL;DR: In this paper, the authors investigate whether corporate governance reforms have altered investor protection (IP) and impacted corporate investments and find that if the CGRs strengthen IP, the gap will decrease (increase) following a CGR in a target's (acquirer's) country, moderating the cherry picking tendency.

Journal ArticleDOI
TL;DR: In this article, the authors investigate how institutional factors influence the behavior of distressed firms in emerging markets, where bankruptcy laws are often weak and debtors have greater bargaining power in distress, and find that local government quality and corporate ownership structure matter considerably to firm performance during distress.

Journal ArticleDOI
TL;DR: The authors examined the relation between business group affiliation and the cost of debt capital and found that firms affiliated with major Korean business groups enjoy a substantially lower cost of public debt than do independent firms, consistent with the co-insurance argument.

Journal ArticleDOI
TL;DR: In this article, the authors extend Baker and Wurgler's (2004a) catering theory of dividends to share repurchases and find evidence that the market's time-varying repurchase premium positively affects firms' choice to repurchase shares.

Journal ArticleDOI
TL;DR: In this article, the authors analyzed the zero-leverage phenomenon around the world and found that countries with a common law system, high creditor protection, and a dividend imputation or dividend relief tax system exhibit the highest percentage of zero leverage firms.

Journal ArticleDOI
TL;DR: This paper analyzed the role of foreign VCs in driving venture success in emerging markets and found that the presence of a foreign VC does not per se significantly increase the likelihood of a successful exit.

Journal ArticleDOI
TL;DR: In this paper, the leverage policies of multinational corporations (MNCs) in comparison to those of domestic corporations (DCs) were examined and it was found that MNCs and DCs do not differ significantly in terms of their debt maturity structure, the speed of leverage adjustments, or the propensity to issue debt vs equity.

Journal ArticleDOI
TL;DR: In this article, the authors study the effect of social ties between top management and board members on the post-IPO operating performance of companies and find that the association between the top management's social ties and the stock market performance depends on whether they are with inside or outside directors.

Journal ArticleDOI
TL;DR: Wang et al. as mentioned in this paper investigated the effects of shareholder protection law on corporate R&D investment and found that the institutional protection of shareholder benefits reduces both underinvestment and over-investment in research projects.

Journal ArticleDOI
TL;DR: In this paper, the authors investigate firms' choice between full-service and boutique advisors and the impact of advisor choice on deal outcomes and find that both acquirers and targets are more likely to choose boutique advisors in complex deals, suggesting that boutique advisors are chosen for their skill and expertise.

Journal ArticleDOI
TL;DR: In this paper, the authors examined the relationship between IPO underpricing and litigation risk in an international setting using a sample of 13,759 firms that went public across 40 countries between 1991 and 2011.

Journal ArticleDOI
TL;DR: In this article, the authors examine the implications of this accounting treatment for a host of common risk and performance metrics, including leverage, Z-score, levered beta, return on capital and other asset utilization measures.

Journal ArticleDOI
TL;DR: In this paper, the authors examine if cash stockpiles fuel cash acquisitions by studying the method of payment decision for cash-rich firms and find that cash rich firms are 23% less likely to make cash bids than stock bids, relative to firms that are not cash rich.

Journal ArticleDOI
TL;DR: In this article, the authors examine how legal protection of creditors affects the value of cash across countries and find that marginal investment is more valuable for firms in countries with weak creditor rights.

Journal ArticleDOI
TL;DR: In this paper, the authors find that insider trades either validate or mitigate the undervaluation signal of the repurchase, and the abnormal returns of repurchasing firms with net insider buying versus net insider selling in a given quarter are significantly higher for the quarter immediately after repurchase and the three subsequent years.

Journal ArticleDOI
TL;DR: In this article, the authors examined the over-investment motivation for share repurchases using a sample of 139 Real Estate Investment Trusts (REITs) between 1996 and 2010.

Journal ArticleDOI
TL;DR: This paper examined a sample of 1458 divestitures of domestic assets by U.S. firms to foreign and domestic buyers over the period 1998-2008 and found that cross-border asset sales yield higher abnormal returns to the seller than domestic sales.

Journal ArticleDOI
TL;DR: The authors examine the relationship between political geography and corporate political strategy by considering lobbying expenditures and find that firms increase their lobbying intensity when local politicians cannot provide a direct link to the governing elite, i.e. when firm location on the political map shifts to an area that is not closely aligned with the president.

Journal ArticleDOI
TL;DR: Li et al. as mentioned in this paper found that higher administrative expenditures in provincial governments are associated with lower firm value, lower stock and financial performance, and lower labor productivity, and that local governments tend to collect more fees from companies and spend less on social welfare and infrastructures.

Journal ArticleDOI
TL;DR: The authors showed that public companies frequently changed their board structures before implementation of the Sarbanes-Oxley Act, with two-thirds of firms changing board size or independence during an average two-year period.