How do activist hedge funds and short sellers interact?
Study co-authored by Pedro Saffi of Cambridge Judge Business School wins Best Paper in Corporate Finance Award at the Society for Financial Studies Asia-Pacific conference. Professor Pedro Saffi A study that examines the interplay between activist hedge funds and short…
Can members with heterogeneous preferences achieve their first-best within a group?
by Dr Shiqi Chen, Research Associate, Cambridge Centre for Finance and Cambridge Endowment for Research in Finance One standard assumption of the existing corporate finance literature is firms' policies are set to maximise total shareholders' value, irrespective of individual stockholders'…
What do capital structure models tell us about the payout policy?
by Dr Shiqi Chen, Research Associate, Cambridge Centre for Finance and Cambridge Endowment for Research in Finance At the beginning of the COVID-19 (coronavirus) crisis, a massive drop in global dividends occurred as firms struggled to preserve cash in this…
Staggering findings
Companies with staggered boards have a higher 'voting premium' that reflects managerial inefficiencies, especially in mature firms and those in noncompetitive industries, finds a new study co-authored by Dr Oğuzhan Karakaş of Cambridge Judge Business School. The practice of 'staggered'…
Firms’ capital structure dynamics, market competition, and industry dynamics
by Shiqi Chen, Research Associate, Cambridge Centre for Finance and Cambridge Endowment for Research in Finance Debt-equity conflict is undoubtfully one of the core paradigms of corporate finance research. It is well-known that, once debt is in place, the misalignment…
Good reporting
Annual reports should inform society – not just shareholders – about vital issues such as the financial health and environmental impact of organisations, says Professor Alan Jagolinzer of Cambridge Judge Business School. Professor Alan Jagolinzer By Professor Alan Jagolinzer Corporate…
Call for SEC action
Article co-authored by Professor Alan Jagolinzer of Cambridge Judge calls for Securities and Exchange Commission to reform 'pre-planned' stock sale rules. Professor Alan Jagolinzer An article co-authored by Professor Alan Jagolinzer of Cambridge Judge Business School in The Hill, a…
Agency conflicts and costs of equity
The agency problem, in the context of separation in ownership (shareholders or the principals) and control (managers or the agents), is one of the most important issues in corporate finance. This separation may induce conflicts of interest inherent in the…
Leading economists on corporate tax reform
The Financial Economists Roundtable, which includes Professor Elroy Dimson of Cambridge Judge, calls for retaining current "worldwide" US tax system but removing the deferral option for offshore profits. The Financial Economist Roundtable, a group of senior economists including Professor Elroy…
Jargon-free corporate finance
A new Short Introduction to Corporate Finance book by Cambridge Judge Professor Raghavendra Rau simplifies an often intimidating subject into six basic ideas – all revolving around the principle of 'no free lunch'. Corporate finance is a topic many people…
