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...

CEOs and their management teams decide how much a firm will spend on IT. Though managers make IT spending decisions with the intent of generating value, such benefits are risky and not guaranteed (Dewan et al. 2007). While CEOs may perceive that IT spending could translate into competitive advantage and increase productivity, they also realize that IT expense will reduce current net income and ...

We empirically examine how governance structure affects the design of executive compensation contracts and, in particular, the implicit weights of firm performance measures in CEO compensation. We find that compensation contracts in firms with higher takeover protection and where the CEO has more influence on governance decisions put more weight on accounting-based measures of performance (retu...

Purpose: This study aims to determine the effect of mergers on BSI's financial performance. Research methodology: The method used in this research is descriptive comparative, namely that describes a certain situation within predetermined period time. data comes from statements three Islamic banks before merger (2019) and BSI after (2021). Results: results show nine ratios studied, six have incr...

The uniform-price auction is used in many regional electricity procurement auctions and its “collusive-seeming equilibria” have been linked to potential exercise of market power. Such equilibria do not exist, however, if a small amount of cash is split among rationed bidders. To shed light on what drives this result, I also examine variations in which the auctioneer is able to increase and/or d...

This paper empirically examines whether additional future fixed capital and R&D investment expenditures induce firms to accumulate cash reserves while considering the role of market imperfections. Implementing a dynamic framework on a panel of US, UK and German companies, we find that firms make larger additions to cash holdings when they plan additional future R&D rather than fixed capital inv...

The environment is the source of many discussions in America’s board rooms. Most of the conversations probably center around cost containment, dealing with new regulations or reacting to unexpected problems. Some conversations may even revolve around how to “cash in” on the public’s concern for the environment. All of these discussions are normal, but also are increasingly becoming outdated. Co...

This study investigates empirically the value investors place in excess cash holdingand how managerial ability impact on the value of cash holding for Iranianfirms from 2006 to 2014. In this research, managerial ability calculated by usingthe data envelopment analysis (DEA). Following the approach of Faulkender andWang, we find that the relation between managerial ability and value of cash hold...

Cash flow information is a method used in order to find out about the development of company so that managers and shareholders can make right policies for company. The ratio cash one financial performances analyzes use statement. purpose this study was determine analysis statement assessing performance at PT. Indosat, Tbk. during 2016-2018. This descriptive qualitative method. results showed Tb...