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Is corporate diversification beneficial in emerging markets?(Statistical Data Included)
June 22, 2002... Using a sample of over 1000 firms from seven emerging markets in 1995, we find that diversified firms trade at a discount of approximately 7% compared to single-segment firms. Diversified firms are also less profitable than single-segment...
Managerial optimism and corporate finance.
June 22, 2002... Two dominant features emerge from a simple model of corporate finance with excessively optimistic managers and efficient capital markets. First, optimistic managers believe that capital markets undervalue their firm's risky securities, and may...
Why do US firms choose global equity offerings?
June 22, 2002... This study examines the economic motivation for global seasoned equity offerings made by US firms. We find that firms announcing global offerings have significantly less negative market reactions than had they limited the issues to domestic...
How does strategic competition affect firm values? a study of new product announcements.
June 22, 2002... We examine the role of strategic interaction in explaining the valuation effect of new product announcements and employ Sundaram. John, and John's (1996) competitive strategy measure to operationalize the nature of a firm's competitive...
Capital Cash Flows: a simple approach to valuing risky cash flows.
June 22, 2002... This paper presents the Capital Cash Flow (CCF) method for valuing risky cash flows. I show that the CCF method is equivalent to discounting Free Cash Flows (FCF) by the weighted average cost of capital. Because the interest tax shields are...
Editors' report on the mid-year operation: April 2002.(Brief Article)
June 22, 2002... 1. Two editorial board meetings were convened -- one at the FMA meetings (October 2001) and the other at the AFA meetings (January 2002). The Addison-Wesley best paper prize ($10,000) selection procedure was established in consultation with the...