Financial Management articles from December 1996

Financial Management archives from December 1996

The option to repurchase stock. (includes appendix)
December 22, 1996... Companies often announce their intention to reacquire shares via open market transactions. However, these programs are not firm commitments. By design, they provide managers the flexibility to forego repurchasing stock. Managers concerned with...

Conditional price trends in the aftermarket for initial public offerings.
December 22, 1996... We document that the risk-adjusted returns on initial public offerings (IPOs) in the short-term aftermarket are in the same direction as their initial mispricing. The initially underpriced issues earn 2.46% (6.40%) more on average, than...

The operating performance of seasoned equity issuers: free cash flow and post-issue performance.
December 22, 1996... The negative effect on stock prices when firms announce seasoned equity offerings (SEOs) has been extensively documented in the literature (see Asquith and Mullins, 1986; and Jung, Kim, and Stulz, 1996). A number of hypotheses that have been...

Issue costs and common stock offerings.
December 22, 1996... Prior research of common stock offerings reaches different conclusions concerning the impact of issue costs on stock value. We identify factors that can best explain the different findings--most prominent are the issue costs measure and the...

Convertible bond financing: are some issuers mimickers?
December 22, 1996... Convertible bonds have been used extensively by corporations to raise external capital.(1) The general consensus appears to be that convertible bonds are issued because the security permits management to infuse the firm's capital structure with...

Prime and score premia: evidence against the tax-clientele hypothesis. (includes appendix)
December 22, 1996... Primes and scores split the cash flows of a share of stock into dividend and capital gain components, respectively. An analysis of transaction prices reveals that the sum of prime and score prices exceeds the price of their underlying stock. This...

Is there synergy between business and research?
December 22, 1996... My topic tonight is a bit unusual, given the recent history of these talks. It's about synergy - the synergy between business and research - between the business of finance and academic research in finance. Why this topic? The hierarchy here...

1995 Wharton survey of derivatives usage by US non-financial firms. (includes appendix)
December 22, 1996... In November 1994, the Weiss Center for International Financial Research of the Wharton School undertook its first survey of derivatives and risk management practice by non-financial corporations in the United States. The results of that first...