I analyze financing policies in a firm owned by atomistic shareholders who observe neither
cash flows nor management's investment decisions. Management derives perquisites from …

This paper analyzes how managerial control of voting rights affects firm value and financing
policies. It shows that an increase in the fraction of voting rights controlled by management …

We develop a positive theory of the hedging behavior of value-maximizing corporations. We
treat hedging by corporations simply as one part of the firm's financing decisions. We …

In this paper, we show that Tobin's q and firm diversification are negatively related throughout
the 1980s. This negative relation holds for different diversification measures and when we …

The average cash‐to‐assets ratio for US industrial firms more than doubles from 1980 to
2006. A measure of the economic importance of this increase is that at the end of the sample …

… In “Rethinking Risk Management” (chapter 5), René Stulz … Stulz argues that the primary
goal of risk management is not … theory, however, is in Stulz’s suggestion that some companies …

We examine a sample of 12,023 acquisitions by public firms from 1980 to 2001. The equally
weighted abnormal announcement return is 1.1%, but acquiring-firm shareholders lose …

We show that there is a negative relation between leverage and future growth at the firm
level and, for diversified firms, at the business segment level. This negative relation between …

Consistent with a life-cycle theory of dividends, the fraction of publicly traded industrial firms
that pay dividends is high when retained earnings are a large portion of total equity (and of …

Differences in culture, proxied by differences in religion and language, cannot be ignored
when examining why investor protection differs across countries. We show that a country's …