Asymmetric timely loss recognition, adverse shocks to external capital, and underinvestment: Evidence from the collapse of the junk bond market
Sign Up to like & getrecommendations! Published in 2017 at "Journal of Accounting and Economics"
DOI: 10.1016/j.jacceco.2017.11.010
Abstract: Abstract Using the collapse of the junk bond market in the early 1990s as an exogenous shock to external capital, I document, in both difference-in-differences and triple difference designs, that speculative-grade firms that recognize economic… read more here.
Keywords: capital; external capital; bond; bond market ... See more keywords
Financial market frictions and diversification
Sign Up to like & getrecommendations! Published in 2018 at "Journal of Financial Economics"
DOI: 10.1016/j.jfineco.2017.09.006
Abstract: We find new facts that relate the evolution of firm scope to the changing frictions in external capital markets over the last three decades. We find that large, diversified publicly traded firms increase their scope… read more here.
Keywords: external capital; frictions diversification; market frictions; market ... See more keywords