Financial Management articles from June 2005

Financial Management archives from June 2005

A cognitive theory of corporate disclosures.
June 22, 2005... I analyze how disclosure policies and managerial cognitive abilities interact to influence stock prices, firm values, and the liquidity of financial markets. High cognitive ability assists in valuecreation within private corporations, but also...

Investment decisions and managerial discipline: evidence from the takeover market.
June 22, 2005... This article focuses on the relative importance of boards of directors and the hostile takeover market in disciplining managers who make poor acquisition decisions. The evidence shows a weak inverse relationship between acquisition performance...

Connecting optimal capital investment and equity returns.
June 22, 2005... Economic theory predicts a contemporaneous correlation between equity returns and investment growth that is only weakly present in the data. By modifying the firm 's production function to include a lag between investment decisions and...

The two faces of analyst coverage.(financial market analysis)
June 22, 2005... We find that positive excess (strong) analyst coverage is associated with overvaluation and low future returns. This finding is consistent with the view that excessive analyst coverage, driven by investment banking incentives and analyst...

Performance attribution of US institutional investors.
June 22, 2005... Institutional investors play a prominent role in today's markets. Quarterly reported portfolio holdings make it possible to evaluate the risk-adjusted equity investment performance of all institutional investors in the United States during...

The information content of insider call options trading.
June 22, 2005... We examine the information content of two forms of insider trading, insider buy-, and sell-call transactions. We find that the information carried by stand-alone call purchases has only a short-term impact on stock prices, but over a longer...