Journal ArticleDOI
R2 around the world: New theory and new tests
Li Jin,Stewart C. Myers +1 more
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This article showed that lack of transparency increases R2 by shifting firm-specific risk to managers and that opaque stocks with high R2s are also more likely to crash, that is, to deliver large negative returns.About:
This article is published in Journal of Financial Economics.The article was published on 2006-02-01. It has received 1468 citations till now. The article focuses on the topics: Corporate governance & Stock (geology).read more
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Economic Effects of Transparency in International Equity Markets: A Review and Suggestions for Future Research
Mark H. Lang,Mark G. Maffett +1 more
TL;DR: The Economic Effects of Transparency in International Equity Markets: A Review and Suggestions for Future Research as mentioned in this paper, discusses the effect of transparency in international equity markets on the performance of stock markets.
Journal ArticleDOI
News media coverage and corporate leverage adjustments
TL;DR: This paper examined the impact of the media on firms' leverage adjustments and found that greater news coverage and more positive news sentiment are associated with greater leverage adjustment speeds, consistent with the argument that media coverage and content help lower the cost of firms' adjustment toward target leverage.
Journal ArticleDOI
Valuation and systemic risk consequences of bank opacity
TL;DR: The authors examined the effects of opacity on bank valuation and synchronicity in bank equity returns over the years 2000-2006 prior to the 2007 financial crisis and found that investments in opaque assets are more profitable than investments in transparent assets, and taking profitability into account, have larger valuation discounts relative to transparent assets.
Journal ArticleDOI
Corporate Transparency and Firm Growth: Evidence from Real Estate Investment Trusts
TL;DR: In this paper, the authors used a panel data set of Real Estate Investment Trusts (REITs) and found that greater transparency facilitates firm growth by relaxing information-based constraints on external financing.
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Finance, Theoretical and Applied
TL;DR: A review of the history of capital structure theories, including the trade-off and pecking-order theories, and a skeptical view of how those theories have been tested so far can be found in this paper.
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Journal ArticleDOI
Theory of the firm: Managerial behavior, agency costs and ownership structure
TL;DR: In this article, the authors draw on recent progress in the theory of property rights, agency, and finance to develop a theory of ownership structure for the firm, which casts new light on and has implications for a variety of issues in the professional and popular literature.
Posted Content
Law and Finance
Rafael La Porta,Rafael La Porta,Florencio Lopez de Silanes,Florencio Lopez de Silanes,Andrei Shleifer,Andrei Shleifer,Robert W. Vishny,Robert W. Vishny +7 more
TL;DR: This paper examined legal rules covering protection of corporate shareholders and creditors, the origin of these rules, and the quality of their enforcement in 49 countries and found that common law countries generally have the best, and French civil law countries the worst, legal protections of investors.
Journal ArticleDOI
Risk, Return, and Equilibrium: Empirical Tests
Eugene F. Fama,James D. MacBeth +1 more
TL;DR: In this article, the relationship between average return and risk for New York Stock Exchange common stocks was tested using a two-parameter portfolio model and models of market equilibrium derived from the two parameter portfolio model.
Journal ArticleDOI
Law and Finance
TL;DR: In this article, the authors examined legal rules covering protection of corporate shareholders and creditors, the origin of these rules, and the quality of their enforcement in 49 countries and found that common-law countries generally have the strongest, and French civil law countries the weakest, legal protections of investors, with German- and Scandinavian-civil law countries located in the middle.
Journal ArticleDOI
Investor Protection and Corporate Governance
TL;DR: In this article, the authors argue that the legal approach is a more fruitful way to understand corporate governance and its reform than the conventional distinction between bank-centered and market-centered financial systems, and discuss the possible origins of these differences, summarize their consequences, and assess potential strategies of corporate governance reform.