Categories
Financial Management (Financial Management Association)

The choice of going public: spin-offs vs. carve-outs

The choice of going public: spin-offs vs. carve-outs – includes appendix Roni Michaely Considerable research has attempted to explain the motivations that underlie organizational changes, such as mergers and corporate asset divestitures, and to quantify the efficiency gains that result from those transactions. For example, Jensen (1993) argues that the merger and acquisition wave of […]

Categories
Financial Management (Financial Management Association)

Treasury management: job responsibilities, curricular development, and research opportunities

Treasury management: job responsibilities, curricular development, and research opportunities Aaron L. Phillips Financially speaking, what do publicly held corporations, privately held businesses, non-profit organizations, state and municipal governments, and colleges/universities all have in common? The answer may be a surprise. It isn’t capital budgeting because most service organizations do not make significant investments in capital […]

Categories
Financial Management (Financial Management Association)

Factors affecting the value of the stock voting right: evidence from the Swiss equity market

Factors affecting the value of the stock voting right: evidence from the Swiss equity market – Special Issue: European Corporate Finance Roger M. Kunz Corporations in various countries issue different classes of common stock with different voting rights. One question that comes up in valuing these different classes of stock is how much, if anything, […]

Categories
Financial Management (Financial Management Association)

Deregulation, reregulation, equity ownership, and S&L risk-taking

Deregulation, reregulation, equity ownership, and S&L risk-taking – savings and loans A. Sinan Cebenoyan Research on non-financial firms generally supports the hypothesis that corporate value is a function of the structure of equity ownership (Jensen and Murphy, 1990, and McConnell and Servaes, 1990). However, little research has been done on this issue for banks or […]

Categories
Financial Management (Financial Management Association)

Does long-term performance of mergers match market expectations? Evidence from the US banking industry

Does long-term performance of mergers match market expectations? Evidence from the US banking industry Gayle DeLong There is a paradox in bank mergers. On average, bank mergers do not create value, yet they continue to occur. Using cross-sectional analysis to examine 54 bank mergers announced between 1991 and 1995, I test several facets of focus […]

Categories
Financial Management (Financial Management Association)

Is corporate diversification beneficial in emerging markets?

Is corporate diversification beneficial in emerging markets? – Statistical Data Included Karl V. Lins Using a sample of over 1000 firms from seven emerging markets in 1995, we find that diversified firms trade at a discount of approximately 7% compared to single-segment firms. Diversified firms are also less profitable than single-segment firms, but lower profitability […]

Categories
Financial Management (Financial Management Association)

Currency and interest-rate derivatives use in US firms

Currency and interest-rate derivatives use in US firms Shawton D. Howton Because corporate use of derivatives is increasing so rapidly, practitioners, regulators, and academics need to know how and why firms use these relatively new financial contracts. Thus, the purpose of our paper is to study the patterns and determinants of derivatives use by examining […]

Categories
Financial Management (Financial Management Association)

The emerging market for trade claims of bankrupt firms

The emerging market for trade claims of bankrupt firms William Beranek A small but growing market has developed for exchanging claims against debtors seeking relief under Chapter 11 of the U.S. Bankruptcy Code. This market provides trade claimants an alternative to forced participation in the reorganization, thereby decreasing the costs of bankruptcy and offering new […]

Categories
Financial Management (Financial Management Association)

Finance Theory and Future Trends: The Shift to Integration

Finance Theory and Future Trends: The Shift to Integration Robert Merton Robert Merton [*] Risk is the central element that influences financial behavior. Measuring that influence, and analyzing ways of controlling, and allocating risk, requires sophisticated mathematical and computational tools. Indeed, mathematical models of modem finance practice contain some of the most complex applications of […]

Categories
Financial Management (Financial Management Association)

The information content of dividend initiations: additional evidence

The information content of dividend initiations: additional evidence – Special Issue: Dividends Edward A. Dyl We investigate changes in firm risk following the initiation of cash dividend payments. The original idea behind the information content of dividends, attributed to Lintner (1956), is that managers only increase dividends when they believe that the level of the […]