"Corporate investment and financing under asymmetric information"
(with N. Schuerhoff) forthcoming Journal of Financial Economics [download pdf]
Dynamic signalling game. Generates a rich set of predictions relating asymmetric information to corporate policy choices.
"Dynamic investment and financing under personal taxation"
(with N. Schuerhoff) Review of Financial Studies 23, 101-146, 2010.
Theory and evidence on the effects of personal taxation on firms' investment and financing decisions.
"Financing and takeovers"
(with A. Zhdanov) Journal of Financial Economics 87, 556-581, 2008.
Explains the relation between the outcome of takeover contests and the financing structure of bidding firms.
"Stock returns in mergers and acquisitions"
(with D. Hackbarth) Journal of Finance 63, 1203-1242, 2008.
Explains the patterns in stock returns around merger announcements and provides empirical support.
"Capital structure, credit risk, and macroeconomic conditions"
(with D. Hackbarth and J. Miao) Journal of Financial Economics 82, 519-550, 2006.
Relates dynamic financing decisions and credit spreads to the business cycle. Explains the countercyclicality of leverage ratios.
"On the debt capacity of growth options"
(with M. Barclay and C. Smith) Journal of Business 79, 37-59, 2006.
Shows that the debt capacity of growth options is negative and provides empirical support.
"Irreversible investment with regime shifts"
(with X. Guo and J. Miao) Journal of Economic Theory 122, 37-59, 2005.
Examines the effects of macroeconomic conditions on optimal investment policies.
"The dynamics of mergers and acquisitions"
(with A. Zhdanov) Journal of Financial Economics 77, 649-672, 2005.
Explains firms' bidding strategies and the observed patterns in abnormal announcement returns.
"Can managerial discretion explain observed leverage ratios?"
Review of Financial Studies 17, 257-294, 2004.
Managerial discretion reduces leverage and creates a link between financing and growth options.
"Capital structure and asset prices: Some effects of bankruptcy procedures"
(with P. François) Journal of Business 77, 387-411, 2004.
Examines the effects of bankruptcy procedures on credit spreads and leverage ratios.
"Asset liquidity, capital structure, and secured debt"
Journal of Financial Economics 61, 173-206, 2001. (Lead Article)
Asset liquidity can reduce a firm's debt capacity if assets are not pledged as collateral."
