Integrating agency and institutional perspectives, we describe how China's socio-political
institutions create state-owned corporate empires with unique agency conflicts. We develop …

I examine how a company's headquarters use an empire-building manager's report about
decision-relevant private information to make capital budgeting decisions and compensate …

The rise in firm-level cash asset ratios has become a prominent trend in countries around
the world which may further influence the capital allocation efficiency. This study analysed …

Despite the great deal of previous research into international diversification, we know little
about the impact of international diversification on firms' credit scores. Drawing upon the …

Hedge funds have started to play an important role in financial markets during the last
decade. They have affected important aspects of financial intermediation such as asset …

This article investigates whether financial systems affect a firm's capital structure choice. I
predict that firms operating in a country with a bank-based financial system tend to have a …

Two behavioral motivations have been identified for overinvestment: agency conflict
(Jensen, 1986) and overconfidence (Heaton, 2002). While the literature on overconfidence …

This paper investigates the influence of external cost shock on the speed of adjustment
(SOA) toward target capital structure. To look at the impact of an exogenous shock on the …

We investigate the existence of a causal relationship between Brazilian thin capitalization
rule and multinationals' capital structure by running a difference-in-differences model and …