-
作者：Krishnaswami, S; Subramaniam, V
作者单位：University of Louisiana System; University of New Orleans; Tulane University
摘要：We empirically analyze the information hypothesis that the separation of a firm's divisions into independently traded units through a spin-off enhances value because it mitigates information asymmetry about the firm. Consistent with this hypothesis, we find that firms that engage in spin-offs have higher levels of information asymmetry compared to their industry and size matched counterparts and the information problems decrease significantly after the spin-off. The gains around spin-offs are ...
-
作者：Lewellen, J
作者单位：University of Rochester
摘要：This paper examines the time-series relations among expected return, risk, and book-to-market (B/M) at the portfolio level. I find that B/M predicts economically and statistically significant time-variation in expected stock returns. Further, B/M is strongly associated with changes in risk, as measured by the Fama and French (1993) (Journal of Financial Economics, 33, 3-56) three-factor model. After controlling for risk, B/M provides no incremental information about expected returns. The evide...
-
作者：Gompers, P; Lerner, J
作者单位：Harvard University; National Bureau of Economic Research
摘要：Venture capital limited partnerships are an attractive arena to study cross-sectional and time-series variations in compensation schemes. We empirically examine 419 partnerships. The compensation of new and smaller funds displays considerably less sensitivity to performance and less variation than that of other funds. The fixed base component of compensation is higher for younger and smaller firms. We observe no relation between incentive compensation and performance. Our evidence is consisten...
-
作者：Kandel, E; Marx, LM
作者单位：University of Rochester; Hebrew University of Jerusalem; Hebrew University of Jerusalem
摘要：We model the behavior of Nasdaq momentum traders, also known as SOES bandits. We show, all things being equal, that the profitability of SOES bandits decreases in the bid-ask spread, but increases in the effective tick size. The patterns we observe in the data provide support for the model. We then discuss the plausibility of odd-eighth tick avoidance by market makers as a defense against SOES bandits, (C) 1999 Elsevier Science S,A, All rights reserved.
-
作者：Bruner, RF
作者单位：University of Virginia
摘要：Volvo's attempt to merge with Renault in 1993 temporarily destroyed SEK 8.6 billion (US$ 1.1 billion) in Volvo shareholder wealth. This study traces the destruction to hubris, managerialism, and the escalation of commitment - elements suggested in previous research. In addition, the case suggests path dependence as a source of wealth destruction in mergers. An elaborate structure of cross-shareholdings,joint committees, and a poison pill made it difficult for the strategic allies (Volvo and Re...
-
作者：Spiess, DK; Affleck-Graves, J
作者单位：University of Notre Dame
摘要：We document substantial long-run post-issue underperformance by firms making straight and convertible debt offerings from 1975 to 1989. This long-run underperformance is more severe for smaller, younger, and NASDAQ-listed firms, and for firms issuing speculative grade debt. We also find strong evidence that the underperformance of issuers of both straight and convertible debt is limited to those issues that occur in periods with a high volume of issues. In contrast to earlier event studies tha...
-
作者：Desai, H; Jain, PC
作者单位：Southern Methodist University; Tulane University
摘要：We examine whether an increase in focus is an explanation for the stock market gains associated with spinoffs. For a sample of 155 spinoffs between the years 1975 and 1991, we find that the announcement period as well the long-run abnormal returns for the focus-increasing spinoffs are significantly larger than the corresponding abnormal returns for the non-focus-increasing spinoffs. The results for the change in operating performance are consistent with those for the stock market performance. ...
-
作者：Guay, WR
作者单位：University of Pennsylvania
摘要：To control risk-related incentive problems, equity holders are expected to manage both the convexity and slope of the relation between firm performance and managers' wealth. I find stock options, but not common stockholdings, significantly increase the sensitivity of CEOs' wealth to equity risk. Cross-sectionally, this sensitivity is positively related to firms' investment opportunities. This result is consistent with managers receiving incentives to invest in risky projects when the potential...
-
作者：Vafeas, N
作者单位：University of Cyprus
摘要：For 307 firms over the 1990-1994 period, I find that board meeting frequency is related to corporate governance and ownership characteristics in a manner that is consistent with contracting and agency theory. The annual number of board meetings is inversely related to firm value. This result is driven by increases in board activity following share price declines. I further find that operating performance improves following years of abnormal board activity. These improvements are most pronounce...
-
作者：Anderson, CW
作者单位：University of Missouri System; University of Missouri Columbia
摘要：Economic volatility, high transaction costs, and fragile institutions hinder financial contracting in emerging markets. These conditions characterize the economy of Brazil, yet a nascent corporate bond marker thrives. I analyze 50 Brazilian indenture agreements and find that sample debentures are characterized by (i) features that mitigate inflation risk for investors, (ii) contingent-maturity mechanisms that provide periodic opportunities for exit or renegotiation, (iii) a paucity of covenant...
