| This dissertation consists of three essays. The first essay examines the determinants of the decision to raise foreign currency loans based on two samples of loans raised by British and Canadian firms. The study also analyzes the interdependencies that exist between the different loan characteristics such as maturity, secured status of the loan and the currency of denomination.; The second essay, co-authored with Thomas Chemmanur and An Yan examines a new class of securities called mandatory convertibles. Mandatory convertibles, which are equity-linked hybrid securities that automatically convert to common stock on a pre-specified date, have become an increasingly popular means of raising capital in recent years (about {dollar}20 billion worth issued in 2001 alone). This paper presents the first theoretical and empirical analysis of mandatory convertibles in the literature. We consider a firm facing a financial market characterized by asymmetric information, and significant costs in the event of financial distress.; The third essay identifies, for the first time in the literature, the specific channels through which overall efficiency improvements occur following spin-offs, using a unique sample of plant level data. Recently, the theoretical literature has argued that spin-offs increase the probability of a takeover by rival management teams with better ability, thus disciplining current management. We compare productivity, wages, employment, sales, materials cost, and capital expenditures of plants (which are part of either "parents" or "subsidiaries") before and after the restructuring to that of a control group of plants that are part of firms which have not undergone such restructuring. (Abstract shortened by UMI.)... |
