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作者：Rosenstein, S; Wyatt, JG
作者单位：University System of Ohio; Miami University
摘要：We investigate whether inside managers are added to corporate boards for efficiency or entrenchment purposes. Our examination of inside director appointments finds that the stock-market reaction to the announcement is significantly negative when inside directors own less than 5% of the firm's common stock, significantly positive when their ownership level is between 5% and 25%, and insignificantly different from zero when ownership exceeds 25%. These results suggest that the expected benefits ...
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作者：Fama, EF; French, KR
作者单位：Yale University; University of Chicago
摘要：Estimates of the cost of equity for industries are imprecise. Standard errors of more than 3.0% per year are typical for both the CAPM and the three-factor model of Fama and French (1993). These large standard errors are the result of(i) uncertainty about true factor risk premiums and (ii) imprecise estimates of the loadings of industries on the risk factors. Estimates of the cost of equity for firms and projects are surely even less precise.
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作者：Singh, AK
摘要：In seasoned equity rights offers, the standby underwriting contract resembles the sale of a put option. In the rights offering period, underwriters reduce their exposure to the standby underwriting by purchasing rights hedged with short sale of the common stock. Consistent with Eckbo and Masulis (1992), offers with large rights sell-offs during the offering period experience significant price decline. The offering period price decline and the nature of constraints confronting underwriters may ...
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作者：Mikkelson, WH; Partch, MM; Shah, K
作者单位：University of Oregon; Southern Methodist University
摘要：Going public typically leads to a separation of managerial control and stock ownership, and potentially worsens managerial incentives. We document that the median ownership stake of officers and directors declines significantly from the year before going public to ten years later. Median operating return on assets also declines from the year before the offering to the end of the first year of public trading, but performance declines no further in ten years. In general, operating performance bo...
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作者：Kothare, M
摘要：[ find that proportionate bid-ask spreads increase after rights offerings of common stock, but decrease after public underwritten offerings. These changes are correlated with changes in the issuing firm's ownership structure. Public offerings cause greater dispersion in share ownership while rights offerings lead to more concentrated ownership. I argue that increased spreads represent a significant cost to issuing firms' shareholders, making rights offerings costlier than public underwritten o...
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作者：Bessembinder, H
摘要：This paper investigates relations between trade execution costs and price-rounding practices for NYSE-and Nasdaq-listed firms. Execution costs on each exchange vary positively with the proportion of transaction prices and quotations rounded to even-eighths of a dollar, both cross-sectionally and intertemporally. After allowing for variation in market-making costs attributable to the private information content of trades, there is a strong positive relation between execution costs and price-rou...
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作者：Graham, JR; Harvey, CR
作者单位：Duke University; Utah System of Higher Education; University of Utah; National Bureau of Economic Research
摘要：We analyze the advice contained in a sample of 237 investment newsletter strategies over 1980-1992. Each newsletter strategy recommends a mix of equity and cash. We find no evidence that letters systematically increase equity weights before market rises or decrease weights before market declines. While there is no information in the newsletter strategies about future market returns, we document that disagreement among the newsletters is correlated with future realized and implied volatility.
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作者：Graham, JR
摘要：This paper focuses on how best to measure the corporate marginal tax rate, which is an important input into financial analysis of the cost of capital, financing policy, corporate hedging, and corporate reorganizations. The results indicate that the simulated tax rate used by Shevlin (1990) and Graham (1996), although difficult to calculate, is the best available proxy for the 'true' marginal tax rate. If the simulated rate is unavailable, an easy-to-calculate trichotomous variable or the statu...
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作者：Graham, JR
摘要：Do taxes affect corporate debt policy? This paper tests whether the incremental use of debt is positively related to simulated firm-specific marginal tax rates that account for net operating losses, investment tax credits, and the alternative minimum tax. The simulated marginal tax rates exhibit substantial variation due to the dynamics of the tax code, tax regime shifts, business cycle effects, and the progressive nature of the statutory tax schedule. Using annual data from more than 10,000 f...
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作者：Yermack, D
摘要：I present evidence consistent with theories that small boards of directors are more effective. Using Tobin's Q as an approximation of market valuation, I find an inverse association between board size and firm value in a sample of 452 large U.S. industrial corporations between 1984 and 1991. The result is robust to numerous controls for company size, industry membership, inside stock ownership, growth opportunities, and alternative corporate governance structures. Companies with small boards a...
