Financial Management articles from December 1999

Financial Management archives from December 1999

A November Effect? Revisiting the Tax-Loss-Selling Hypothesis.(Statistical Data Included)
December 22, 1999... We document the existence of another seasonality in stock returns: a November effect. The uniqueness of this study is that the November effect is observed only after the passage of the Tax Reform Act of 1986. We document a unique and...

The Information Content of Dividend and Capital Structure Policies.(Statistical Data Included)
December 22, 1999... We reexamine signaling and agency theories and argue that the free-cash-flow hypothesis implies a stronger information effect for both over- and underinvesting firms than for value-maximizing firms. Our results indicate that dividend and...

Bank Managers' Opportunistic Trading of their Firms' Shares.(Statistical Data Included)
December 22, 1999... Requiring managers to hold shares in the firms they manage can reduce agency problems. Despite the pivotal role of share ownership, little evidence exists concerning who determines the level of ownership, the compensation committee, or managers...

Insider Trading, Equity Issues, and CEO Turnover in Firms Subject to Securities Class Action.(Statistical Data Included)
December 22, 1999... In the typical securities class action (SCA), firms and their managers are sued for securities law violations by shareholders who allege that managers fraudulently withheld negative information or published misleading information during a...

Expected Market Reaction and the Choice of Method of Payment for Acquistions.(Statistical Data Included)
December 22, 1999... We hypothesize that a bidder's managers forecast the market's reaction to the announcement of an acquisition and choose the method of payment that they expect to provide the higher abnormal return. We find that most bidders chose the method of...

Failure and Failure Resolution in the US Thrift and Banking Industries.(Statistical Data Included)
December 22, 1999... The failure of large numbers of thrift and commercial banking firms during the 1980s and early 1990s severely tested the existing deposit insurance and failure resolution systems in the United States. This paper surveys recent academic and...

New Evidence on Serial Correlation in Analyst Forecast Errors.(Statistical Data Included)
December 22, 1999... We reexamine the serial correlation of forecast errors using a method that allows analysts to react differently to good and bad news. Our method also controls for the influence of a normal non-zero, firm-specific component of forecast error....

Futures Hedge Profit Measurement, Error-Correction Model vs. Regression Approach Hedge Ratios, and Data Error Effects.(Statistical Data Included)
December 22, 1999... This paper proposes that, and explains why, hedge profits and regression approach hedge ratios should be calculated using cost-of-carry-adjusted price changes. This Modified Regression Method for determining hedge ratios is denoted MRM. The...

Uncertainty in Executive Compensation and Capital Investment: A Panel Study.(Statistical Data Included)
December 22, 1999... We investigate whether uncertainty in CEO compensation influences the firm's investment decisions. We use panel data on compensation to estimate CEO income uncertainty and cross-sectional investment data to measure capital investment. Given the...