Excess corporate payouts and financial distress risk

Corporate Financial Distress: An Empirical Analysis of Distress Risk

IT, Corporate Payouts, and the Growing Inequality in Managerial Compensation

Three of the most fundamental changes in US corporations since the early 1970s have been (1) the increase in the importance of organizational capital in production, (2) the increase in managerial income inequality, and (3) the increase in payouts to the owners. There is a unified explanation for these changes: The arrival and gradual adoption of information technology since the 1970s has stimul...

Impact of Financial Characteristics on Future Corporate Risk-Taking Behavior

Organizational risk is often defined as a change in the flow of profit, or as a sys-tematic or non-systematic changes in the stock return flow. The risk taking of management is conceptualized as the actual investment decisions that are indictors due to uncertainty results. The purpose of this study is to investigate the effect of financial characteristics on future corporate risk taking behavio...

Corporate Response to Distress: Evidence from the Asian Financial Crisis

This paper provides a comprehensive examination of corporate responses to financial distress during an economy-wide crisis, specifically through the restructuring of assets (through asset sales, mergers, or liquidations) and/or liabilities. Using firm-level data from five countries hardest hit by the East Asian financial crisis of 1997-98, this study contrasts the effects that financial and cor...

Notes on Advanced Corporate Financial Risk Management

The term risk management can mean different things to different people. In the last few decades, with the rise of financial engineering, the term risk management has become strongly associated with the derivatives trading desks of investment banking houses and hedge funds. In a few commodity industries certain firms have developed profitable trading operations built on the same principles. In n...