This paper investigates the determinants of corporate cash holdings in EMU countries. Our results suggest that are positively affected by investment opportunity set and flows negatively asset's liquidity, leverage size. Bank debt related, which supports a close relationship with banks allows firm to hold less for precautionary reasons. Firms countries superior investor protection concentrated ownership cash, supporting role managerial discretion agency costs explaining levels. Capital...

We study the relationship of corporate governance policy and idiosyncratic risk in stock returns. Firms with fewer anti-takeover provisions display higher levels risk, trading activity, private information flow, more about future earnings prices. Trading interest by institutions, especially those active merger arbitrage, strengthens to risk. Our results indicate that openness market for control leads informative prices encouraging collection on information. Consistent an information-flow...

Journal Article Insider Trading Laws and Stock Price Informativeness Get access Nuno Fernandes, Fernandes Universidade Católica Portuguesa Send correspondence to Faculdade de Ciências Economicas e Empresariais, Palma Cima, 1649-023 Lisboa, Portugal; telephone: +351.217.214.270; e-mail: nfernandes@fcee.ucp.pt. Search for other works by this author on: Oxford Academic Google Scholar Miguel A. Ferreira ISCTE Business School-Lisbon The Review of Financial Studies, Volume 22, Issue 5, May 2009,...

We study the role of institutional investors in cross-border mergers and acquisitions (M&As). find that foreign ownership is positively associated with intensity M&A activity worldwide. Foreign increases probability a merger deal cross-border, successful, bidder takes full control target firm. This relation stronger countries weaker legal institutions less developed markets, suggesting some substitutability between local governance investors. The results are consistent hypothesis act as...

We use a new data set to study the determinants of performance open–end actively managed equity mutual funds in 27 countries. find that underperform market overall. The results show important differences fund USA and elsewhere world. US evidence diminishing returns scale is not universal truth as located outside invest overseas negatively affected by scale. Our findings suggest adverse effects are related liquidity constraints faced that, virtue their style, have small domestic stocks....

We show that firms with chief executive officers (CEOs) who gain general managerial skills over their lifetime of work experience produce more patents. address the potential endogenous CEO–firm matching bias using firm–CEO fixed effects and variation in enforceability noncompete agreements across states time during CEO’s career. Our findings suggest generalist CEOs spur innovation because they acquire knowledge beyond firm’s current technological domain, have can be applied elsewhere should...

This paper challenges the widely accepted stylized fact that chief executive officers (CEOs) in United States are paid significantly more than their foreign counterparts. Using CEO pay data across fourteen countries with mandated disclosures, we show U.S. premium is economically modest and primarily reflects performance-based demanded by institutional shareholders independent boards. Indeed, find no significant difference either level of or use equity-based between non-U.S. firms exposed to...

ABSTRACT We show that sovereign debt impairments can have a significant effect on financial markets and real economies through credit ratings channel. Specifically, we find firms reduce their investment reliance due to rising cost of capital following rating downgrade. identify these effects by exploiting exogenous variation in corporate agencies' ceiling policies, which require firms' remain at or below the country domicile.

We study the role of institutional investors around world using a comprehensive data set equity holdings from 27 countries. Domestic, U.S.-, and non-U.S.-based foreign institutions hold comparable shares non-U.S. corporations. find that all have strong preference for stock large firms with governance indicators, while tend to overweight are cross-listed in U.S. members Morgan Stanley Capital International World Index. higher ownership by independent (unlike other institutions) firm...

We investigate the effects of bank control over borrower firms whether by representation on boards directors or holding shares through asset management divisions. Using a large sample syndicated loans, we find that banks are more likely to act as lead arrangers in loans when they exert some firm. Bank-firm governance links associated with higher loan spreads during 2003–2006 credit boom but lower 2007–2008 financial crisis. Additionally, these mitigate rationing The results robust several...

We examine whether institutional investors affect corporate governance by analyzing portfolio holdings of institutions in companies from 23 countries during the period 2003-2008. find that firm-level is positively associated with international investment. Changes ownership over time subsequent changes governance, but opposite not true. Foreign and strong shareholder protection play a crucial role promoting improvements outside U.S. Institutional only which mechanisms are place, also...

We show that municipalities' financial constraints can have a significant impact on local employment and growth. identify these effects by exploiting exogenous upgrades in U.S. municipal bond ratings caused Moody's recalibration of its scale 2010. find governments increase expenditures because their debt capacity expands following rating upgrade. These an estimated income multiplier 1.9 cost per job $20,000 year. Our findings suggest debt-financed increases government spending improve...