Journal ArticleJournal of Corporate Finance · February 1, 2026
This special issue of the Journal of Corporate Finance brings together eleven papers that examine how blockchain technologies are reshaping modern financial systems. The contribu- tions analyze decentralized markets, information provision, digital asset pr ...
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Journal ArticleManagement Science · August 1, 2025
We examine the effects of adoption of labor-replacing automation technology on corporate financing. Empirically, using Chinese firm-level panel data on deployment of industrial robots as an example of such automation, we find that robot adoption increases ...
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Journal ArticleJournal of Financial Economics · July 1, 2023
This paper models benefits of quoting output price in units of crypto token under duopolistic product market competition with switching costs. Pricing output in tokens provides a firm with a de facto second-mover advantage, raising its equilibrium profit. ...
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Journal ArticleManagement Science · December 1, 2022
We compile a comprehensive data set of initial coin offerings (ICOs) from 19 data sources including 11 ICO aggregators.We alleviate severe limitations of available ICO data by performing the first systematic analysis of ICO data quality.We use our data set ...
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Journal ArticleJournal of Law Finance and Accounting · November 8, 2021
We develop a model of freeze-out merger and tender offers and test it in an economy where merger and tender regulation are extremely different. Using a relatively large sample of 329 freeze-out offers in Israel during 2000–2019, we document evidence consis ...
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Journal ArticleManagement Science · October 1, 2021
This paper develops a theory of financing of entrepreneurial ventures via crypto tokens, which is not limited to platform-based ventures. We compare token financing with traditional equity financing, focusing on agency problems and information asymmetry fr ...
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Journal ArticleJournal of Corporate Finance · February 1, 2021
We examine the nature of information contained in insider trades prior to corporate events. Insiders' net buying increases before open market share repurchase announcements and decreases before seasoned equity offers. Higher insider net buying is associate ...
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Journal ArticleReview of Finance · November 1, 2020
This paper shows that the stock market misprices firms' investment options. We build a real options model of optimal investment under uncertainty to estimate the value of firms' investment options. We show that firms with valuable investment options have a ...
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Journal ArticleReview of Financial Studies · December 1, 2019
Portfolio diversification of firms' controlling owners influences their firms' capital investment. Empirically, the effect of owners' portfolio diversification on their firms' investment levels is positive for publicly traded firms and tends to be negative ...
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Journal ArticleJournal of Banking and Finance · November 1, 2019
Although complementarity between products and/or technologies of bidders and targets is considered a key driver of M&A deals, many observed mergers are inefficient: Complementarity gains in actual mergers are lower than the gains that could have been obtai ...
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Journal ArticleReview of Finance · February 1, 2019
We study how operating efficiencies in horizontal mergers affect market reactions of merging firms’ rivals, customers, and suppliers. We measure operating efficiency gains using projections disclosed by merging firms’ insiders. Higher efficiency gains are ...
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Journal ArticleJournal of Financial Economics · February 1, 2019
This paper examines how competition among suppliers affects their willingness to provide trade credit financing. Trade credit extended by a supplier to a cash constrained retailer allows the latter to increase cash purchases from its other suppliers, leadi ...
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Journal ArticleManagement Science · February 1, 2018
We propose and implement a direct test of the hypothesis of oligopolistic competition in the U.S. underwriting market against the alternative of implicit collusion among underwriters. We construct a simple model of interaction between heterogeneous underwr ...
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ConferenceJournal of Financial and Quantitative Analysis · December 1, 2016
We demonstrate theoretically and empirically that strategic considerations are important in shaping the cash policies of innovative firms. In our model, firms compete in product markets with uncertain structure using cash as a commitment device to invest i ...
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Journal ArticleJournal of Corporate Finance · February 1, 2014
In this paper we provide an investment-based explanation for the popularity of convertible debt. Specifically, we demonstrate the ability of convertible debt to alleviate and potentially totally eliminate the underinvestment problem of Myers (1977). A conv ...
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Journal ArticleJournal of Financial Markets · August 1, 2013
A firm's mix of growth options and assets in place is an important determinant of its optimal default strategy. Our simple model shows that shareholders of a firm with valuable investment opportunities would be able/willing to wait longer before defaulting ...
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Journal ArticleJournal of Finance · August 1, 2012
We provide evidence that the positive relation between firm-level stock returns and firm-level return volatility is due to firms' real options. Consistent with real option theory, we find that the positive volatility-return relation is much stronger for fi ...
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Journal ArticleJournal of Financial and Quantitative Analysis · October 1, 2011
We propose a model that links a firm's decision to go public with its subsequent takeover strategy. A private bidder does not know a firm's true valuation, which affects its gain from a potential takeover. Consequently, a private bidder pursues a suboptima ...
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Journal ArticleFinancial Management · June 1, 2011
We examine the extent to which the stock market's inefficient responses to resolutions of uncertainty depend on investors' biased ex ante beliefs regarding the probability distribution of future event outcomes or their ex post irrational reactions to these ...
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Journal ArticleJournal of Financial Economics · April 1, 2011
We examine firms' incentives to go public in the presence of product market competition. As a result of their greater ability to diversify idiosyncratic risk in the capital market, public firms' owners tolerate higher profit variability than owners of priv ...
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Journal ArticleJournal of Banking and Finance · November 1, 2010
In this paper we examine a new effect of risky debt on a firm's investment strategy. We call this effect " accelerated investment" It stems from a potential loss of investment option in the event of default. The possibility of default reduces the value of ...
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Journal ArticleFinance Research Letters · March 1, 2010
In this paper, I examine the relation between the direct costs of issuing seasoned equity (SEO gross spreads) and the change in deviation of firms' leverage ratios from their estimated targets following SEOs. If underwriters have bargaining power vis-a-vis ...
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Journal ArticleReview of Financial Studies · November 1, 2008
An investment factor, long in low-investment stocks and short in high-investment stocks, helps explain the new issues puzzle. Adding the investment factor into standard factor regressions reduces the SEO underperformance by about 75%, the IPO underperforma ...
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Journal ArticleJournal of Corporate Finance · December 1, 2007
This paper examines the effects of costly external financing on the optimal timing of a firm's investment. By altering the optimal investment timing, costly financing affects current investment and the sensitivity of investment to internal cash flow. Impor ...
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Journal ArticleReview of Financial Studies · November 1, 2007
This article proposes a new explanation for the large cross-sectional variation in the excess values of diversified firms. The model applies the idea of shareholders limited liability affecting firms output market strategies to the analysis of financial an ...
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Journal ArticleJournal of Corporate Finance · September 1, 2007
We propose a model that examines the optimal size of venture capital and private equity fund portfolios. The relationship between a VC and entrepreneurs is characterized by double-sided moral hazard, which causes the VC to trade off larger portfolios again ...
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Journal ArticleJournal of Business · September 1, 2006
I develop a simple model that examines the relations between the extent of competitive interaction among firms in output markets, their capital structures, and the aggressiveness of their operating strategies. A firm's optimal leverage is related to the de ...
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