Financial Management articles from June 2008

Financial Management archives from June 2008

Return performance surrounding reverse stock splits: can investors profit?(Report)
June 22, 2008... We examine the long-run return performance of over 1,600 firms with reverse stock splits. These stocks record statistically significant negative abnormal returns over the three-year period following the month of the reverse split. The sample...

Stock splits in Switzerland: to signal or not to signal?(Report)
June 22, 2008... In Switzerland, the existence of a mandatory minimum par value inhibited many companies from splitting their stocks as they already traded at their minimum par value. These Swiss companies could split their stocks only after the legal minimum...

Institutional investors and shareholder litigation.(Report)
June 22, 2008... We examine whether institutional investors are able to avoid future litigation. Our results show that institutions provide a fiduciary role by decreasing or eliminating their positions in sued firms well before litigation begins. We also find...

Share repurchase offers and liquidity: an examination of temporary and permanent effects.(Report)
June 22, 2008... Open-market repurchase programs do not allow for precise estimates of share buy-back intensity to measure liquidity effects. To circumvent the uncertainty surrounding the quantity and timing of shares truly acquired in repurchase programs and...

The wealth effect of Japanese-US strategic alliances.(Report)
June 22, 2008... We investigate the wealth impact for Japanese and US firms that announce nonequity strategic alliances. We find that on average, both Japanese and US shareholders benefit from the formation of international alliances. We also find that...

Do analysts influence corporate financing and investment?
June 22, 2008... We examine whether abnormal analyst coverage influences the external financing and investment decisions of the firm. Controlling for self-selection bias in analysts' excessive coverage, we find that firms with high (low) analyst coverage...

Capital structure choice in a nascent market: evidence from listed firms in China.(Report)
June 22, 2008... We study the capital structure decisions of listed firms in China between 1992 and 2001. The Chinese market exhibits high information asymmetry, phenomenal growth, highly concentrated ownership, and a lack of external market for corporate...

Tax-adjusted discount rates with investor taxes and risky debt.(Report)
June 22, 2008... This paper derives a tax-adjusted discount rate formula with a constant proportion leverage policy, investor taxes, and risky debt. The result depends on an assumption about the treatment of tax losses in default. We identify, the assumption...