Financial Management articles from March 2009

Financial Management archives from March 2009

Capital structure decisions: which factors are reliably important?
March 22, 2009... This paper examines the relative importance of many factors in the capital structure decisions of publicly traded American firms from 1950 to 2003. The most reliable factors for explaining market leverage are: median industry leverage (+ effect...

Information, selective disclosure, and analyst behavior.
March 22, 2009... This paper examines whether the prohibition of selective disclosures to equity research analysts mandated by Regulation FD alters the amount olin formation and the manner in which it is revealed to the market. We demonstrate that equity...

Liquidity: considerations of a portfolio manager.
March 22, 2009... This paper examines liquidity and how it affects the behavior of portfolio managers, who account for a significant portion of trading in many assets. We define an asset to be perfectly liquid if a portfolio manager can trade the quantity she...

On the use of multifactor models to evaluate mutual fund performance.(Report)
March 22, 2009... In this paper, we evaluate the cross-sectional power of multifactor models to explain mutual fund returns and examine the consequences of using these models to evaluate mutual fund performance. First, we identify the extent to which...

The conditional beta and the cross-section of expected returns.
March 22, 2009... We examine the cross-sectional relation between conditional betas and expected stock returns for a sample period of July 1963 to December 2004. Our portfolio-level analyses and the firm-level cross-sectional regressions indicate a positive,...

Corporate governance ratings and firm performance.
March 22, 2009... We examine the corporate governance ratings provided by three premier US rating agencies and find that summary scores are generally poor predictors of primary and secondary measures of future firm performance. However, some component...

Determinants of investment cash flow sensitivity.
March 22, 2009... I classify firms into groups of high, low, and negative sensitivity. I find that investment-cash flow sensitivity is nonmonotonic with respect to financial constraints, cash flows, and growth opportunities. Firms classified as negative cash...

International evidence on financial derivatives usage.
March 22, 2009... Theory predicts that nonfinancial corporations might use derivatives to lower financial distress costs, coordinate cash flows with investment, or resolve agency conflicts between managers and owners. Using a new database, we find that...