Financial Management articles from June 1993

Financial Management archives from June 1993

Interpreting SIGNs. (stock index growth notes) (Security Design Special Issue)
June 22, 1993... The rich variety of securities innovations in recent years continues to intrigue academicians and practitioners alike.(1) The array of innovative securities includes a variety of equity-linked debt securities, some of which base the equity...

Exchangeable debt. (includes appendices) (Security Design Special Issue)
June 22, 1993... This paper analyzes the valuation effects of and the motivation for issuing exchangeable debt -- a hybrid form of convertible debt. This research is motivated by what Miller |6~ describes as a "revolution" in financial innovation that has...

Financial innovations and excesses revisited: the case of auction rate preferred stock. (Security Design Special Issue)
June 22, 1993... The surge in financial innovation that occurred during the 1980s produced a family of securities that were designed to lower the cost of preferred stock financing by widening the availability of the Internal Revenue Code Section 246(c)...

Indexed sinking fund debentures: valuation and analysis. (includes appendices) (Security Design Special Issue)
June 22, 1993... |Mathematical Expression Omitted~, where |d.sup.FNMA~ and |d.sup.TSY~ denote the FNMA and on-the-run Treasury discount functions, respectively. Note that |Mathematical Expression Omitted~, where the forward rate of term T - t at time t...

Default risk and innovations in the design of interest rate swaps. (includes appendix) (Security Design Special Issue)
June 22, 1993... In the past ten years, interest rate swaps have become one of the most popular and effective products available to financial managers for controlling the impact of changing financial market conditions. That they are widely used is indisputable....

Behavioral aspects of the design and marketing of financial products. (Security Design Special Issue)
June 22, 1993... (July 1977), pp. 327-352. 46. A. Tversky and D. Kahneman, "The Framing of Decisions and the Psychology of Choice," Science (January 1981), pp. 453-458. 47. A. Tversky and D. Kahneman, "Rational Choice and the Framing of Decisions," Journal...

Corporate investments and finance. (Corporate Investments Special Issue)
June 22, 1993... This special issue of Financial Management is concerned with the manner in which projects are chosen, organized and financed by firms. The three other papers in this special issue deal with a variety of different aspects of this capital...

Managerial reputation and corporate investment decisions. (Corporate Investments Special Issue)
June 22, 1993... conclusion about the market for takeovers and other forms of corporate control. What we do see is that a large variety of managerial investment policies are influenced by the manager's incentive to build his personal reputation and that of his...

Financing multiple investment projects. (Corporate Investments Special Issue)
June 22, 1993... This paper investigates how a multiproject firm's choice of organization structure affects its value. We develop a framework in which agency and corporate tax considerations simultaneously influence investment incentives, then evaluate how an...

SWORD financing of innovation in the biotechnology industry. (includes appendix)(stock warrant off-balance-sheet research and development) (Corporate Investments Special Issue)
June 22, 1993... This paper analyzes a financing arrangement known as stock warrant off-balance-sheet research and development ("SWORD") that has been used recently in the biotechnology industry. A SWORD, as the industry calls this arrangement, consists of a set...

Recognizing retiree health benefits: the effect of SFAS 106. (Statement of Financial Accounting Standards Board) (Corporate Investments Special Issue)
June 22, 1993... In December 1990, the Financial Accounting Standards Board (FASB) |8~ issued Employers' Accounting for Postretirement Benefits Other than Pensions -- Statement of Financial Accounting Standards No. 106 ("Statement No. 106") to apply to financial...

Market manipulation and corporate finance: a new perspective. (Review)
June 22, 1993... United States equity and Treasury markets have often been cited in the academic literature as examples of perfectly competitive markets involving numerous buyers and sellers acting as price-takers. Recent academic research, however, has focused...