The Costs of Outside Equity Control: Evidence from Motion Picture Financing Decisions

Journal of Business

Volumn 75, Issue 4, 2002, Pages 681-711

  Edward Fee, C ^a  

^a MICHIGAN STATE UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0141908258     PISSN: 00219398     EISSN: None     Source Type: Journal    
DOI: 10.1086/341639     Document Type: Article

References (38)

1. Aghion, P., and Bolton, P. 1992. An incomplete contracts approach to financial contracting. Review of Economic Studies 59 (July): 473-94.
2. Bach, S. 1985. Final Cut: Dreams and Disaster in the Making of "Heaven's Gate." New York: William Morrow.
3. Barry, C. B.; Muscarella, C. J.; Peavy, J. W., III; and Vetsuypens, M. R. 1990. The role of venture capital in the creation of public companies: Evidence from the going public process. Journal of Financial Economics 27 (October): 447-71.
4. Baumgarten, P. A.; Farber, D. C.; and Fleischer, M. 1992. Producing, Financing, and Distributing Film: A Comprehensive Legal and Business Guide. New York: Limelight Editions.
5. Bay, Willow. 1998. What if E.T. died? Test audiences have profound effect on movies, http://sswww.cnn.com/SHOWBlZ/Movies/9809/28/screen.test/index.html (September 28).
6. Bethel, J. E.; Liebeskind, J. P.; and Opler, T. 1998. Block share purchases and corporate performance. Journal of Finance 53 (April): 605-34.
7. Bolton, P., and Von Thadden, E. 1998. Blocks, liquidity, and corporate control. Journal of Finance 53 (February): 1-25.
8. Burkhart, M.; Gromb, D.; and Panunzi, F. 1997. Large shareholders, monitoring, and the value of the firm. Quarterly Journal of Economics 112 (August): 693-728.
9. Chisholm, D. C. 1997. Profit-sharing versus fixed-payment contracts: Evidence from the motion pictures industry. Journal of Law, Economics, and Organization 13 (April): 169-201.
10. Cones, J. W. 1992. Film Finance and Distribution: A Dictionary of Terms. Los Angeles: Silman-James.
11. Cones, J. W. 1995. Forty-Three Ways to Finance Your Feature Film. Carbondale and Edwards-ville: Southern Illinois University Press.
12. Demsetz, H., and Lehn, K. 1985. The structure of corporate ownership: Causes and consequences. Journal of Political Economy 93 (December): 1155-77.
13. Denis, D. J.; Denis, D. D.; and Sarin, A. 1997. Ownership structure and top executive turnover. Journal of Financial Economics 45 (August): 193-221.
14. Diamond, D. 1991. Monitoring and reputation: The choice between bank loans and directly-placed debt. Journal of Political Economy 99 (August): 689-721.
15. Diamond, D. 1993. Seniority and maturity of debt contracts. Journal of Financial Economics 33 (June): 341-68.
16. Fleming, Charles, and Natale, Richard. 1992. Cheap dates driving new H'wood pickups. Variety (weekly) (September 14).
17. Fleming, Michael. 1992. Mattress Mac in bid with H'Wood. Variety (weekly) (February 10), p. 5.
18. Fluck, Z. 1998. Optimal financial contracting: Debt versus outside equity. Review of Financial Studies 11 (Summer): 383-418.
19. Goldberg, V. P. 1997. The net profits puzzle. Columbia Law Review 518 (March): 524-50.
20. Grossman, S., and Hart, O. D. 1986. The costs and benefits of ownership: A theory of vertical and lateral integration. Journal of Political Economy 94 (August): 691-719.
21. Hart, O. 1995. Firms, Contracts, and Financial Structure. Oxford: Clarendon.
22. Hart, O., and Moore, J. 1990. Property rights and the nature of the firm. Journal of Political Economy 98 (December): 1119-58.
23. Horn, John. 1995. Rare despair: Leaving Las Vegas rolls the dice with dark story. Associated Press (October 25).
24. Lerner, J. 1995. Venture capitalists and the oversight of private firms. Journal of Finance 50 (March): 301-18.
25. Litwak, M. 1986. Reel Power: The Struggle for Influence and Success in the New Hollywood. New York: William Morrow.
26. Litwak, M. 1994. Dealmaking in the Film and Television Industry: From Negotiations to Final Contracts. Los Angeles: Silman-James.
27. Myers, S. C. 2000. Outside equity. Journal of Finance 55 (June): 1005-37.
28. Pagano, M., and Röell, A. 1998. The choice of stock ownership structure, agency costs, monitoring, and the decision to go public. Quarterly Journal of Economics 113 (February): 187-225.
29. Rajan, R. 1992. Insiders and outsiders: The choice between informed and arm's length debt. Journal of Finance 47 (September): 1367-1400.
30. Ravid, S. A. 1999. Information, blockbusters and stars - a study of the film industry. Journal of Business 72 (October): 463-92.
31. Sahlman, W. A. 1990. The structure and governance of venture-capital organizations. Journal of Financial Economics 27 (October): 473-521.
32. Shleifer, A., and Vishny, R. W. 1986. Large shareholders and corporate control. Journal of Political Economy 94 (June): 461-89.
33. Shleifer, A., and Vishny, R. W. 1997. A survey of corporate governance. Journal of Finance 52 (June): 737-83.
34. Shulins, Nancy. 1987. Ben and Jerry prove ice cream and bottom line successful. Associated Press (July 7).
35. Smith, Russell. 1992. Keith Gordon: "Clear" direction: For now, he'll forgo Hollywood's easy money to keep the independent's artistic freedom. Dallas Morning News (May 2), p. 5c.
36. Vogel, H. L. 1998. Entertainment Industry Economics: A Guide for Financial Analysis. 4th ed. Cambridge: Cambridge University Press.
37. Weinstein, M. 1998. Profit sharing contracts in Hollywood: Evolution and analysis. Journal of Legal Studies 27 (January): 67-112.
38. Welch, I. 1997. Why is bank debt senior? A theory of asymmetry and priority based on influence costs. Review of Financial Studies 10 (Winter): 1203-36.