Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Regulations and corporate financial and investment policy

Regulations and corporate financial and investment policy Guest editorial Guest editorial The special issue has its primary focus on topics involving regulatory, financial and investment content. The rich mix of empirical papers exploring regulations, practices, models, etc., from the world of business explains how those impact mood and decisions in corporate finance across major markets. The research studies establish several factors that can affect finance in practice and as a discipline ranging from social media to legislations and financial reporting to modeling. These studies contribute to the growing literature on the impact of policy on corporate activities. The paper by Mishra et al. (2019) seeks to understand any possible connection between the appointment of chief financial officer (CFO) and debt-equity choice of a firm. During their research, it was unraveled that an internal candidate, primarily in “value firms,” in the CFO position can substantially decrease information asymmetry (IA) leading to lesser risk in market and thereby reduced cost of equity financing. However, in firms with high IA, even internally chosen CFO was found to prefer debt financing due to its “disciplining role.” The relevance of information is further emphasized by Amin et al. (2019) in their article that examines the potential role played by social media http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Managerial Finance Emerald Publishing

Regulations and corporate financial and investment policy

Managerial Finance , Volume 46 (2): 2 – Mar 17, 2020

Loading next page...
 
/lp/emerald-publishing/regulations-and-corporate-financial-and-investment-policy-VrM4Cwe3yw

References (8)

Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0307-4358
DOI
10.1108/MF-02-2020-637
Publisher site
See Article on Publisher Site

Abstract

Guest editorial Guest editorial The special issue has its primary focus on topics involving regulatory, financial and investment content. The rich mix of empirical papers exploring regulations, practices, models, etc., from the world of business explains how those impact mood and decisions in corporate finance across major markets. The research studies establish several factors that can affect finance in practice and as a discipline ranging from social media to legislations and financial reporting to modeling. These studies contribute to the growing literature on the impact of policy on corporate activities. The paper by Mishra et al. (2019) seeks to understand any possible connection between the appointment of chief financial officer (CFO) and debt-equity choice of a firm. During their research, it was unraveled that an internal candidate, primarily in “value firms,” in the CFO position can substantially decrease information asymmetry (IA) leading to lesser risk in market and thereby reduced cost of equity financing. However, in firms with high IA, even internally chosen CFO was found to prefer debt financing due to its “disciplining role.” The relevance of information is further emphasized by Amin et al. (2019) in their article that examines the potential role played by social media

Journal

Managerial FinanceEmerald Publishing

Published: Mar 17, 2020

There are no references for this article.