Why Do Over-Deviated Firms from Target Leverage Undertake Foreign Acquisitions?
نویسندگان
چکیده
منابع مشابه
Deviation from Target Leverage and Leverage Adjustment Speed in Firms with Small Positive Earnings
This study investigates whether deviation from target leverage (leverage adjustment speed) in firms with small positive earnings (i.e., SPOS) is higher (slower) than that of other firms. We find evidence suggesting that managers of SPOS manipulate sales, production processes, and discretionary expenses to avoid reporting losses. Our results show that deviation from target leverage in SPOS is hi...
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متن کاملWhy do firms undertake diversifying mergers? An analysis of the investment. . .
Recent empirical literature documents value-destroying \crosssubsidization" among the divisions of diversi ed rms. However, this literature relies upon two maintained hypotheses: that divisions of diversi ed rms are randomly allocated to their corporate parents and that the investment opportunities facing conglomerate divisions are identical to those of stand-alone rms in their industries. This...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2018
ISSN: 1556-5068
DOI: 10.2139/ssrn.3206223