Financial Management articles from June 2001

Financial Management archives from June 2001

The Efficiency of Equity-Linked Compensation: Understanding the Full Cost of Awarding Executive Stock Options.(Statistical Data Included)
June 22, 2001... Lisa K. Meulbroek [*] To properly align incentives using equity-linked compensation, the firm's managers must be exposed to firm-specific risks, but this concentrated exposure prevents optimal portfolio diversification. Because...

Valuation and Information Acquisition Policy for Claims Written on Noisy Real Assets.
June 22, 2001... Timothy J. Riddiough [*] We study contingent claims written on real assets, whose values are observed with noise, and the acquisition of information to improve irreversible exercise decisions. We determine the conditional expected asset...

Detecting Abnormal Operating Performance: Revisited.
June 22, 2001... Erik Lie [*] Firms that undertake corporate events often exhibit atypical financial characteristics, such that future performance might be expected to change even before the event is announced. I investigate five methods for generating...

The Return-Stages Valuation Model and the Expectations Within a Firm's P/B and P/E Ratios.
June 22, 2001... Thomas D. Dowedell [*] The return-stages model can quantify the expectations facing a firm from its price-to-book (P/B) and price-to-earnings (P/E) ratios. We illustrate two implications of the model. First, a firm s P/B and P/E ratios can...