Institutional Investor Horizons, Information Environment, and Firm Financing Decisions

2012 ◽  
Author(s):  
Xin Chang ◽  
Yangyang Chen ◽  
Sudipto Dasgupta
Keyword(s):  
Institutional Investor ◽  
Information Environment ◽  
Financing Decisions ◽  
Firm Financing

The Influence of Regulation Fair Disclosure on Firm Financing Decisions

2010 ◽  
Author(s):  
Susan M. Albring ◽  
Monica L. Banyi ◽  
Dan S. Dhaliwal ◽  
Raynolde Pereira
Keyword(s):  
Regulation Fair Disclosure ◽  
Financing Decisions ◽  
Fair Disclosure ◽  
Firm Financing

Does institutional investor horizon influence US corporate financing decisions?

2019 ◽  
Vol 63 ◽  
pp. 382-394 ◽  
Author(s):  
Sabri Boubaker ◽  
Lamia Chourou ◽  
Samir Saadi ◽  
Ligang Zhong
Keyword(s):  
Institutional Investor ◽  
Corporate Financing ◽  
Financing Decisions

Does Mandatory Disclosure of Internal Control Weaknesses Affect Corporate Financing Decisions?

2018 ◽  
Vol 35 (3) ◽  
pp. 581-606 ◽  
Author(s):  
Xinghua Gao ◽  
Yonghong Jia ◽  
Siyi Li
Keyword(s):  
Internal Control ◽  
Information Environment ◽  
External Financing ◽  
Equity Financing ◽  
Corporate Financing ◽  
Financing Decisions ◽  
Financing Choices ◽  
Internal Control Weaknesses ◽  
Financing Behavior ◽  
The Impact

We examine the impact of internal control weaknesses (ICWs) on firms’ financing choices and how firms alter their financing behavior after the mandated disclosure of ICWs. We find that, before disclosure, ICW firms tend to seek external financing more than non-ICW firms do and are more likely to use equity financing as opposed to debt. After the disclosure, however, ICW and non-ICW firms exhibit similar financing preferences. In exploring the motivations for equity financing, we find that ICW firms are more prone than non-ICW firms to use the equity proceeds to fund investments and that this penchant disappears post-disclosure. The overall evidence indicates that ICW disclosure alters the information environment and managerial incentives, which has significant impact on firms’ financing decisions.

scholarly journals Investor Competition over Information and the Pricing of Information Asymmetry

2011 ◽  
Vol 87 (1) ◽  
pp. 35-58 ◽  
Author(s):  
Brian K. Akins ◽  
Jeffrey Ng ◽  
Rodrigo S. Verdi
Keyword(s):  
Information Asymmetry ◽  
Cost Of Capital ◽  
Institutional Investor ◽  
Fundamental Question ◽  
Information Environment ◽  
Cross Sectional ◽  
The Cost ◽  
Jel Classifications

ABSTRACT Whether the information environment affects the cost of capital is a fundamental question in accounting and finance research. Relying on theories about competition between informed investors as well as the pricing of information asymmetry, we hypothesize a cross-sectional variation in the pricing of information asymmetry that is conditional on competition. We develop and validate empirical proxies for competition using the number and concentration of institutional investor ownership. Using these proxies, we find a lower pricing of information asymmetry when there is more competition. Overall, our results suggest that competition between informed investors has an important effect on how the information environment affects the cost of capital. JEL Classifications: G12; G14.

Does the Firm Information Environment Influence Financing Decisions? A Test Using Disclosure Regulation

2016 ◽  
Vol 62 (2) ◽  
pp. 456-478 ◽  
Author(s):  
Susan Albring ◽  
Monica Banyi ◽  
Dan Dhaliwal ◽  
Raynolde Pereira
Keyword(s):  
Information Environment ◽  
Disclosure Regulation ◽  
Financing Decisions ◽  
Environment Influence

Firm Financing Decisions

2005 ◽  
Author(s):  
Long Chen ◽  
Xinlei Shelly Zhao
Keyword(s):  
Financing Decisions ◽  
Firm Financing
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