Financial Management articles from December 1997

Financial Management archives from December 1997

Tick size and market quality.
December 22, 1997... We examine the impact of a reduction in minimum tick size on market quality, internalization, and member profits using a transactional database of stocks listed on the Toronto Stock Exchange (TSE) for March and May, 1996. The database identifies...

Board composition and control of shareholder voting rights in the banking industry.
December 22, 1997... This study examines the board of directors in 190 publicly traded bank holding companies and finds that board composition reflects the ownership structure of the firm. Outside director board membership is greater when institutional investors and...

A contingent-claims approach to the inventory-stocking decision. (includes appendix)
December 22, 1997... Inventory management is a major area of study in the fields of engineering economics and production/operations management, and applying modern techniques of inventory management (along with improvements in telecommunications and transportation)...

The administrative costs of debt restructurings: some recent evidence.
December 22, 1997... This paper examines the size and determinants of direct costs in a sample of 157 traditional Chapter 11s, prepackaged bankruptcies, and exchange offers over the period 1986 to 1993. Direct costs consist of the legal, accounting, and other...

An international comparison of derivatives use.
December 22, 1997... Recent surveys by Bodnar, Hayt, and Marston (1996); Bodnar, Hayt, Marston, and Smithson (1995); and Phillips (1995) present descriptive evidence on the use of derivatives by US nonfinancial firms. The purpose of this paper is to describe...

Valuation process and market efficiency for US Treasury bonds.
December 22, 1997... On April 10, 1991, the Wall Street Journal (WSJ) reported that, for the first time since 1962, the US government was investigating the possibility of calling a Treasury bond. The news concerned some bond analysts, but others felt that a call...

Biases in arithmetic and geometric averages as estimates of long-run expected returns and risk premia.
December 22, 1997... Consider an investment project with an average life (duration) of N months. What rate should be used to discount this project's expected cash flows? In particular, suppose the required return on the N-month investment project is based on a market...