Financial Management articles from December 2007

Financial Management archives from December 2007

Do affiliated analysts mean what they say?(Report)
December 22, 2007... Many investors were upset with the losses they experienced by following the recommendations of stock analysts during the recent market downturn. Allegations that these recommendations were often tainted by investment banking relationships...

On the timing of dividend initiations.(Report)
December 22, 2007... We study the timing and significance of dividend initiations in the life cycle of a firm. Following a sample of firms from the IPO onwards, and using a hazard model to examine which factors predict initiations, we find that: 1) initiators are...

Information, incentive alignment, and company loan financing of insider trades.(Report)
December 22, 2007... Insider acquisitions of shares are supposed to align the interests of managers and shareholders. Thus, purchases are typically viewed as positive signals. However, if the transactions do not put insiders' wealth at risk, perhaps this conclusion...

Dividend tax cut and security prices: examining the effect of the Jobs and Growth Tax Relief Reconciliation Act of 2003.(Report)
December 22, 2007... Changes in dividend taxation for individuals under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JAGTRRA) allow us to test hypotheses motivated by the dividend valuation and policy theory. Using event studies, we find that,...

Determinants of idiosyncratic volatility for biotech IPO firms.(initial public offering)(Report)
December 22, 2007... In this paper we examine the cross-sectional determinants of idiosyncratic volatility of biotech IPO firms. We extend current research in two directions. First, we test whether CEO stock options impact idiosyncratic volatility. Second, we test...

What determines the level of short-selling activity?
December 22, 2007... I test several explanations for the short-sale trading for a sample of the NYSE and the Nasdaq stocks during the 1988-2002 period. I find that short-selling activity is positively related to arbitrage opportunities and hedging demand, and...

Effects of global and industrial diversification on firm value and operating performance.(Report)
December 22, 2007... We directly test the impact of increases in global and industrial diversification on firm value and operating performance. Our sample represents 194 US firms that acquired foreign companies during 1985-1998. Announcement period returns are...