Financial Management articles from December 1993

Financial Management archives from December 1993

An empirical examination of white knight corporate takeovers: synergy and overbidding. (Mergers and Acquisitions)
December 22, 1993... The purpose of this study is to investigate the characteristics of takeover contests which involve a "white knight," i.e., a friendly bidding firm actively sought by a target which is resisting acquisition by a hostile bidding firm. In view of...

Takeover activity and the long-run performance of reverse leveraged buyouts. (Mergers and Acquisitions)
December 22, 1993... A reverse leveraged buyout occurs when either a publicly traded firm or a division within one converts to private ownership via a leveraged buyout (LBO) and subsequently goes public. This paper examines the three-year investment performance of...

The acquisition of failing thrifts: returns to acquirers. (Mergers and Acquisitions)
December 22, 1993... The record number of insolvent savings and loan associations and savings banks has resulted in a drastic consolidation of the thrift industry. The federal insurance corporations -- the Federal Savings and Loan Insurance Corporation (FSLIC) before...

The choice of organizational form: the case of post-merger managerial incentive structure. (Mergers and Acquisitions)
December 22, 1993... Numerous studies have recognized that organizational form plays an important monitoring role. Fama and Jensen |11~, |12~ and Williamson |30~, |31~ claim that organizational form is an optimal response to agency problems and that managerial...

Japanese foreign direct investment: wealth effects from purchases and sales of U.S. assets. (includes appendix) (Mergers and Acquisitions)
December 22, 1993... As the dollar has depreciated relative to many foreign currencies recently, foreign acquisitions of U.S. firms and assets have increased.(1) In the 1970s and early 1980s, most foreign acquirers were from the UK, Canada, and the Netherlands. By...

The tax advantages of refunding debt by calling, repurchasing, and putting. (includes appendices) (Mergers and Acquisitions)
December 22, 1993... A tax advantage is one of the major motivations cited in the literature for issuing callable debt. Yawitz and Anderson |23~, |24~, and Boyce and Kalotay |3~ have demonstrated that, from a tax point of view, issuing callable debt dominates issuing...

Calls of out-of-the-money convertible bonds. (Mergers and Acquisitions)
December 22, 1993... In this paper, we examine calls of convertible bonds in which the effective call price of the bond exceeds the conversion value.(1) Several studies report negative common stock price reactions to calls of convertible bonds (see Mikkelson |13~,...

Advertising, R&D expenditures and the market value of the firm. (Mergers and Acquisitions)
December 22, 1993... This paper provides evidence that advertising and research and development (R&D) expenditures have large, positive and consistent influences on the market value of the firm. Like information on current cash flows, data on advertising and R&D...