Financial Management articles from June 1997

Financial Management archives from June 1997

Investment analysis of offshore concessions in the Netherlands.
June 22, 1997... This paper describes the valuation of a complex capital project: the staged development of an oil field concession in The Netherlands. The development of a license area in the Dutch Continental Shelf consists of sequential investments in test...

An analysis of prices, bid/ask spreads, and bid and ask depths surrounding Ivan Boesky's illegal trading in Carnation's stock.
June 22, 1997... This paper examines trading activity surrounding the acquisition of Carnation Company by Nestle S.A. in 1984. During the summer of 1984, prior to the first public announcement by Carnation or Nestle of merger discussions, Ivan Boesky acquired...

An explanation of underwriting spread differentials on complex securities.
June 22, 1997... In recent years, there has been a large increase in the variety of securities which corporations issue, going well beyond traditional debt and equity (Merton, 1995). Some complex securities combining elements of debt and equity, such as...

Cash flow and capital spending: evidence from capital expenditure announcements.
June 22, 1997... The influence of internally generated cash flow on financing capital investment spending is well documented.(1) Less well understood is the cause behind this influence. Modigliani and Miller's (1958) irrelevance proposition asserts that firms...

Valuing finite-maturity investment-timing options. (includes appendix)
June 22, 1997... The important role of the timing decision and its significant impact on the value of an investment project has become increasingly recognized (Brealey and Myers, 1996; Emery and Finnerty, 1997). Previous research solved for the optimal-timing...

Competitive advantage period: the neglected value driver.
June 22, 1997... In 1991, a Goldman Sachs limited partner, Barrie Wigmore, released a study that attempted to determine what factors drove the stock market's above-average returns in the decade of the 1980s. After carefully accounting for earnings growth,...