We construct a comprehensive dataset of patent sales conducted by all US public firms in Chapter 11 bankruptcy from 1981 to 2012. We document that 40% of firms sell, on average, 18% of their patents during bankruptcy reorganizations. Innovation sales concentrate in the first two quarters after bankruptcy filing. Firms sell more redeployable and liquid patents, as opposed to selling underexploit...

We show that measurable managerial characteristics have significant explanatory power for corporate financing decisions. First, managers who believe that their firm is undervalued view external financing as overpriced, especially equity financing. Such overconfident managers use less external finance and, conditional on accessing external capital, issue less equity than their peers. Second, CEO...

We examine the impact of the economic reform programme on the financing choices of Zimbabwean listed companies. Using the published accounts of a sample of companies we show that listed firms rely heavily on external finance, especially short term bank financing. We estimate an eclectic econometric model of firms’ capital structure based on key predictions from the theory of finance, augmented ...

We derive the optimal crowdfunding contract of a financially constrained monopolist and analyze its implications for production, investment and welfare. Crowdfunding contracts may serve as a price-discrimination mechanism, forcing pivotal consumers to pay a premium above the future spot price, thus increasing profits. When raising funds is costly, entrepreneurs balance the benefits from price d...

We use a panel of over 120,000 Chinese firms of different ownership types over the period 2000-2007 to analyze the linkages between investment in fixed and working capital and financing constraints. We find that those firms characterized by high working capital display high sensitivities of investment in working capital to cash flow (WKS) and low sensitivities of investment in fixed capital to ...

Cristiana Tudor∗ This study employs Enterprise Survey data to analyze business environment constraints and financing sources for investment for Romanian and Bulgarian companies at the end of 2009 and investigates the change in financing sources after the global financial crisis relative to a pre-crisis period (2005). The study also investigates whether the ownership structure of a firm affects ...

s: The costly external financing assumption in capital shock theories of insurance cycles are often attributed to Myers and Majluf (1984). The purpose of this paper is to revisit the Myers and Majluf model and to propose a modified model that better fits capital shock theories. By so doing, this paper attempts to provide justification for existing empirical papers on insurance cycles. Contrary ...

The comparative performance of different systems of corporate governance, in turn, has been at the core of recent debates on how to reform financial market institutions. So far, the literature has treated the discussion of internal and external financial structures largely in isolation. However, few attempts have been made so far to combine these two strands of the literature and to analyze the...

We analyze a model of optimal capital structure and liquidity choice based on a dynamic tradeoff theory for financially constrained firms. In addition to the classical tradeoff between the expected tax advantages of debt and bankruptcy costs, we introduce a cost of external financing for the firm, which generates a precautionary demand for liquidity and an optimal liquidity management policy fo...