Financial Structure, Acquisition Opportunities, and Firm Locations

Almazán, Andrés; Motta, Adolfo de; Titman, Sheridan; Uysal, Vahap Bülent

doi:10.1111/j.1540-6261.2009.01543.x

Cited by 184 publications

(90 citation statements)

References 52 publications

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“…Using data from a sample of 25 companies during 1999 to 2009 on the Greek stock exchange, Afza and Mirza (2010) indicate that the dividend policies and its treatment is the most important for the investors (Afza and Mirza, 2010). In another study, Almazan et al (2010) also examined the effect of the financial leverage on the dividend policies in the companies of Karachi. The result of their study indicated a negative and significant relationship between financial leverage and amount of divisible profit.…”

Section: Literature Reviewmentioning

confidence: 99%

Relationship between Firm Age and Financial Leverage with Dividend Policy

Takhtaei¹

2014

AJFA

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In this study, the effect of the financial leverage the age of the company on the policies of the profit distribution of the company has been investigated. In this case, two hypotheses have been developed. In the first hypothesis, the effects of the age of the company and also in second hypothesis the effects of the financial leverage on the policies of profit distribution of the company have been investigated. Sample firms are the manufacturing companies accepted in Tehran Stock Exchange (TSE) over the period from 2005 to 2011. In order to determine the sample firms, systematic sampling has been used and finally 92 companies have been selected. To investigate the linear or non-linear relationship between company age and dividends, the square and the cube of the company age in empirical model of the research have been used. The results indicate a positive and significant relationship between company age and dividend ratio, but a negative and significant association between financial leverage and dividend.

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Section: Literature Reviewmentioning

confidence: 99%

Relationship between Firm Age and Financial Leverage with Dividend Policy

Takhtaei¹

2014

AJFA

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“…Almazan et al (2010) develop an analytical model in support of the view that geographically clustered firms tend to have more investment opportunities, and require increased cash holdings to undertake more acquisitions. Landier et al (2009) show that firms' geographic dispersion substantially affects labor and divestiture policies.…”

Section: Introductionmentioning

confidence: 99%

Geographic location, excess control rights, and cash holdings

Boubaker

Derouiche²,

Lasfer

2015

International Review of Financial Analysis

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We assess the extent to which remotely-located firms are likely to discretionarily accumulate cash rather than distribute it to shareholders. We consider that these firms are less subject to shareholder scrutiny and, thus, will have high agency conflicts as the distance will facilitate the extraction of private benefits. Consistent with our predictions, we find a positive relation between the distance to the main metropolitan area and cash holdings, and this impact is more pronounced when the controlling shareholder has high levels of excess control rights (i.e., separation of cashflow rights and control rights). Our results hold even after accounting for all control variables, including financial constraints, and suggest that geographic remoteness can be conducive to severe agency problems, particularly when there is a large separation of cash-flow rights and control rights.JEL Classification: G30; G31; G32; G35.

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“…2 In our model the merger setting exhibits features similar to the internal capital markets in that the post-merger firm has two employees, allowing the firm to create value as long as at least one of them is successful. This feature is similar to winner picking advantage of internal capital markets identified in Stein (1997).…”

Section: Introductionmentioning

confidence: 99%

Mergers, Spin-Offs, and Employee Incentives

Fulghieri

Sevilir

2010

SSRN Journal

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This paper studies mergers between competing firms and shows that while such mergers reduce the level of product market competition, they may have an adverse effect on employee incentives. In industries where value creation depends on innovation and development of new products, mergers are likely to be inefficient even though they increase the market power of the post-merger firm. In such industries, a stand-alone structure where independent firms compete both in the product market and in the market for employee human capital leads to a greater profitability. Furthermore, our analysis shows that multidivisional firms can improve employee incentives and increase firm value by reducing firm size through a spin-off transaction although doing so reduces the benefits of operating an internal capital market within the firm.To be presented at the AFA 2010 meetings. We thank seminar participants at ESMT, Oxford University and University of Virginia for useful comments. All errors are our own.

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Financial Structure, Acquisition Opportunities, and Firm Locations

Cited by 184 publications

References 52 publications

Relationship between Firm Age and Financial Leverage with Dividend Policy

Relationship between Firm Age and Financial Leverage with Dividend Policy

Geographic location, excess control rights, and cash holdings

Mergers, Spin-Offs, and Employee Incentives

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