Handbook of Corporate Finance Empirical Corporate Finance Volume 1

134 S. Dasgupta and R.G. Hansen in the number of bidders caused by a mixed strategy equilibrium in the game of entry into an IPO ...

Ch. 3: Auctions in Corporate Finance 135 size that bankers agree to provide research coverage for issuers in return for using th ...

136 S. Dasgupta and R.G. Hansen 4.10. The spectrum auctions and the role of debt in auctions Beginning in 1994, the Federal Comm ...

Ch. 3: Auctions in Corporate Finance 137 4.11. Advanced econometrics of auction data There has been considerable progress in the ...

138 S. Dasgupta and R.G. Hansen Conclusion Upon reflection, the accomplishments of auction theory are really quite amazing. Th ...

Ch. 3: Auctions in Corporate Finance 139 While auction theory deserves much credit for its inroads into corporate finance, two a ...

140 S. Dasgupta and R.G. Hansen References Aghion, P., Hart, O., Moore, J., 1992. The economics of bankruptcy reform. Journal of ...

Ch. 3: Auctions in Corporate Finance 141 Dasgupta, S., Tsui, K., 2003. A “matching auction” for targets with heterogeneous bidde ...

142 S. Dasgupta and R.G. Hansen Jennings, R.H., Mazzeo, M.A., 1993. Competing bids, target management resistance, and the struct ...

Ch. 3: Auctions in Corporate Finance 143 Povel, P., Singh, R., 2006. Takeover contests with asymmetric bidders. Review of Financ ...

This page intentionally left blank ...

Chapter 4 BEHAVIORAL CORPORATE FINANCE* MALCOLM BAKER Harvard Business School and NBER, Soldiers Field, Boston, MA 02163, USA e- ...

146 M. Baker et al. 2.5. Other corporate decisions 164 2.5.1. Dividends 165 2.5.2. Firm names 166 2.5.3. Earnings management 167 ...

Ch. 4: Behavioral Corporate Finance 147 Introduction Corporate finance aims to explain the financial contracts and the real in ...

148 M. Baker et al. The second approach to behavioral corporate finance, the “irrational managers ap- proach”, is less developed ...

Ch. 4: Behavioral Corporate Finance 149 rities prices. This requires limits on arbitrage. Second, managers must be smart in the ...

150 M. Baker et al. Fischer and Merton (1984), De Long et al. (1989), Morck, Shleifer, and Vishny (1990b), andBlanchard, Rhee, a ...

Ch. 4: Behavioral Corporate Finance 151 We leave out the budget constraint, lumping together the sale of new and existing shares ...

152 M. Baker et al. In words, the first condition is about investment policy. The marginal value created from investment is weig ...

Ch. 4: Behavioral Corporate Finance 153 according to payout policy as they do inBaker and Wurgler (2004a). The tradeoff is −fd(K ...