Corporate Financing Decisions When Investors Take the Path of Least Resistance

By Malcolm P. Baker, Joshua D. Coval, Jeremy C. Stein. 2007

119 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/2cc4d132d39c346160565e75ad68b6ffc8782bf5

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Finance

Citations in the corpus

The Marketing of Seasoned Equity Offerings (2010, unknown): “Baker, Coval, and Stein (2007) argue that for acquiring firms that face downward-sloping demand curves, investors’ inertial behavior (i.e., the tendency to react passively) mitigates the negative merger announcement effect, and increases the benefit of a stock-for-stock merger relative to a cash…”
How Do Diversity of Opinion and Information Asymmetry Affect Acquirer Returns (2007, background): “As pointed out by Baker, Coval, and Stein (2006), capital gains may also increase the premium paid by the acquirer if the target shareholders expect to sell their shares because they do not want to hold the shares of the acquirer.”
Behavioral Corporate Finance: An Updated Survey (2011, unknown): “• What is the impact of investor inertia and limited attention on corporate finance? Baker et al. (2007) and Della Vigna and Pollet (2009) consider stock swaps and the timing of corporate disclosure.”
Overpriced Shares, Ill-Advised Acquisitions, and Goodwill Impairment (2011, unknown): “…with overpriced shares also have the advantage of reducing the negative impact of a new equity issuance on bidder share price because, as shown by Baker et al. (2007), in a stock acquisition, most of the target shareholders become new shareholders of the bidder as they follow the “path of least…”
Capital Market-Driven Corporate Finance (2009, background): “These are either the tip of the iceberg of market inefficiency or a curiosity in an otherwise efficient market.”
Which Firms Follow the Market? An Analysis of Corporate Investment Decisions (2010, unknown): “Baker, Coval, and Stein (2007) use idiosyncratic risk as a measure of the slope of a stock’s demand curve.”