The average cash‐to‐assets ratio for US industrial firms more than doubles from 1980 to
2006. A measure of the economic importance of this increase is that at the end of the sample …

We examine a sample of 12,023 acquisitions by public firms from 1980 to 2001. The equally
weighted abnormal announcement return is 1.1%, but acquiring-firm shareholders lose …

In this paper, we show that Tobin's q and firm diversification are negatively related throughout
the 1980s. This negative relation holds for different diversification measures and when we …

I analyze financing policies in a firm owned by atomistic shareholders who observe neither
cash flows nor management's investment decisions. Management derives perquisites from …

We show that there is a negative relation between leverage and future growth at the firm
level and, for diversified firms, at the business segment level. This negative relation between …

… M denotes the book value of total assets estimated at the end of the fiscal year preceding the
… Rene M.. 1990, Managerial discretion and optimal financing policies, Journal of Financial …

… the marginal agency costs of managerial discretion curve to M' M', so that optimal leverage
falls … Stulz, Rene M., 1990, Managerial discretion and optimal financing policies, Journal of …

We develop a positive theory of the hedging behavior of value-maximizing corporations. We
treat hedging by corporations simply as one part of the firm's financing decisions. We …

This paper investigates the effect of bankruptcy announcements on the equity value of the
bankrupt firm's competitors. On average, bankruptcy announcements decrease the value of a …

Differences in culture, proxied by differences in religion and language, cannot be ignored
when examining why investor protection differs across countries. We show that a country's …