We investigate the relation between the transparency of financial statements and the
distribution of stock returns. Using earnings management as a measure of opacity, we find that …

This book is an introduction to corporate finance focusing on how companies invest in real
assets, how they raise the money to pay for the investments, and how those assets ultimately …

The standard view that banks can value maximize by exploiting non-risk-rated deposit
insurance ignores the potential loss of a valuable bank charter due to insolvency. Recognition of …

We ask whether the apparent impact of governance structure and incentive-based compensation
on firm performance stands up when measured performance is adjusted for the effects …

This paper examines the relation between institutional investor involvement in and the
operating performance of large firms. We find a significant relation between a firm’s operating …

WHEN CONGRESS SET THE PREMIUM RATE for FDIC deposit insurance in the Banking
Act of 1935 (which authorized a permanent federal insurance system), neither experience nor …

Equilibrium in the market for real assets requires that the price of those assets be bid up to
reflect the tax shields they can offer to levered firms. Thus, there must be an equality between …

Although employer pension programs vary in design, they are usually classified into two broad
types: defined contribution and defined benefit. These two categories are distinguished in …

This paper uses an option valuation model of the firm to answer the question, “What magnitude
tax advantage to debt is consistent with the range of observed corporate debt ratios?” We …

Exchange members claim that the professional relationships that evolve on exchange floors
yield benefits not easily duplicated by an anonymous exchange mechanism. We show that …