We examine how the cost of equity changes when firms are added to or removed from the
S&P 500 Index during index revisions. Newly added firms experience a significant decline in …

We investigate the effect of growth opportunities in a firm's investment opportunity set on its
joint choice of leverage, debt maturity, and covenants. Using a database that contains …

We examine the wealth effects of mergers and acquisitions on target and acquiring firm
bondholders in the 1980s and 1990s. Consistent with a coinsurance effect, below investment …

… For a given firm–year observation with financial and hedging information in year t, we
require that there is at least one bond transaction in year t + 1 in order to estimate a valid cost of …

We examine the relation between the overall corporate governance structure and managerial
risk-taking behavior. We find that the overall governance structure has a significant impact …

… Tao-Hsien Dolly King is an associate professor of finance at the University of North Carolina
… We use the time subscript t+1 to emphasize that the estimation period for the parameters in …

This paper examines the decision to list abroad by Chinese companies in the form of ADRs
and foreign IPOs from 1993 to 2005. Our sample consists of 33 ADRs, 218 foreign IPOs, and …

… , d + L I B O R d + F i r m F i x e d F f f e c t s + Y e a r F i x e d E f f e c t s + ε i , j , t , d , where
i, j, t, and d denote the ith firm and jth loan for year t and day d. Spread is the loan interest …

… We compute the future change in earnings as the difference between EBIT in year t + 2 and
EBIT in year t divided by the absolute value of EBIT in year t, where for example, year t + 2 is …

In this paper we examine the importance of systematic equity market factors in explaining
the cross-sectional variation in yield spreads on corporate debt. Based on a sample of 1771 …