We draw on stylized facts from the finance literature to build a model where altering the relative costs of bank and bond financing changes the entire distribution of firm size, with implications for the aggregate capital stock, output, and welfare. Reducing transaction costs in the bond market increases the output and profits of midsize firms at the expense of both the largest and smallest fir...

W propose a measure of managerial ability, based on managers’ efficiency in generating revenues, which is available for a large sample of firms and outperforms existing ability measures. We find that our measure is strongly associated with manager fixed effects and that the stock price reactions to chief executive officer (CEO) turnovers are positive (negative) when we assess the outgoing CEO a...

Until recently, public-key certiicate issuance has involved verifying users' identities and public keys over a separate|and presumably secure|channel, such as in person or over the phone. However, the recent draft SET speciication has changed that with a protocol for issuing public-key certiicates to credit card holders in an interaction that takes place entirely over the Internet. We describe ...

This study proposes a model that clarifies how disaster warning issuance conditions affect “cry wolf” syndrome. The disaster assumed in this study is landslide caused by heavy rainfall. Local authorities that issue disaster warnings are thought to tend to avoid the situation where casualty occurs without the issuance to residents of a disaster warning. As a result, the issuance conditions may b...

Equity marginal q is the change in market value of a company’s equity in conjunction with a oneunit unexpected change in its asset base. Hence, it is a profitability index that evaluates a firm’s capital budgeting decisions at the margin. In this paper, we estimate the equity marginal q for real estate-managing public corporations, namely, real estate investment trusts (REITs), in an attempt to...

Abstract This article investigates the impact of exchange-traded fund (ETF) ownership on seasoned equity offerings (SEOs). We find that increases to firms’ ETF is positively related their propensity conduct an SEO. also associated with less negative SEO announcement returns, smaller discounts, and better long-run stock returns. Our evidence consistent issuance following investor demand for stoc...

Many corporate events are self-selected, but the relative impact of internal (firm-specific) and external (environmental) influences on discretionary corporate decisions remains largely unknown. In this paper, focusing on corporate debt issuance, we apply the contemporary push-pull theory to establish whether bond issuance are pushed by the firms due to internal considerations, or pulled by the...

This article examines the sustainability characteristics of listed firms that raise fresh capital by issuing stocks or bonds. Issuance—that is, primary market—should be paramount importance to sustainable investors because this is where demand for and supply meet, contrary secondary market ownership existing bonds merely exchanged between investors. The authors find no evidence flowing more tow...

In this paper, I consider a dynamic trade-off model of financing with difference in beliefs between the manager and investors. In the model, investors update more readily on earnings announcements than the manager does. The model offers a parsimonious treatment of endogenous financing, payout, and cash policies. The model generates a broad set of well-documented empirical facts that are difficu...

In many applications, large volumes of time-sensitive textual information require triage: rapid, approximate prioritization for subsequent action. In this paper, we explore the use of prospective indications of the importance of a time-sensitive document, for the purpose of producing better document filtering or ranking. By prospective, we mean importance that could be assessed by actions that ...