송교직 교수

Abstract We examine whether firm managers engage in income‐increasing accruals manipulation or real activities earnings management to affect the future rating changes when firm managers have private information about the upcoming credit rating change. Using the large sample of United States data over the period 1990–2011, we find that firms with upcoming credit rating changes are likely to engage in real activities earnings management, whereas they tend to decrease discretionary accruals before

Abstract We investigate the long-term effect of the Asian financial crisis on corporate cash holdings in 8 East Asian countries. The Asian firms build up cash holdings by decreasing investment activities after the crisis. We find that the increase in cash holdings is not explained by changes in firm characteristics but by changes in the firms’ demand function for cash, which indicates that the crisis has systematically changed the firms’ cash-holding policies. Specifically, the firms’ increased

Abstract In this study, we find that private operating firms with larger controlling shareholders' ownership merge with special purpose acquisition companies (SPACs) rather than take the conventional initial public offering (IPO) route to go public in Korea. This finding indicates that compared to U.S. SPACs, the controlling shareholders' motive to avoid their ownership dilution makes SPAC mergers popular in Korea. In addition, we document that the merged firms do not reveal difference in stock

Abstract: Using a sample of 129 mergers and acquisitions (M&As) in the US between publicly traded acquirers and targets in research and development (R&D) intensive industries over the period of 1994‐2004 and a size‐ and industry‐matched sample, we examine the relation among targets’ R&D activities, the probability of acquirers’ writing‐off in‐process R&D (IPRD), and acquirers’ returns around the time of M&A announcements. We find that firms acquiring targets with higher R&amp

Survey evidence indicates that firm managers try to time debt markets when choosing the maturity of new debt issues, but we do not know whether these strategies increase firm value. This research examines differences in value across nontimers and timers, where timers are defined as firms that follow either a naïve strategy of choosing long-term debt when the term premium is low or a strategy from Baker et al. (2003 Baker, M, Greenwood, R and Wurgler, J. 2003. The maturity of debt issues and pred

We examine whether firm managers engage in income-increasing accruals manipulation or real activities earnings management to affect the future rating changes when firm managers have private information about the upcoming credit rating change. Using the large sample of United States data over the period 1990–2011, we find that firms with upcoming credit rating changes are likely to engage in real activities earnings management, whereas they tend to decrease discretionary accruals before credit ra