Financial Management articles from March 1994

Financial Management archives from March 1994

Dividend policy and corporate monitoring: evidence from the regulated electric utility industry.
March 22, 1994... Miller |13^ has argued that providing a rational explanation for the widely practiced policy of paying dividends is among the central tasks of modern corporate finance theory. Corporate finance textbooks often rationalize dividends as a signal, a...

Insider trading following material news events: evidence from earnings.
March 22, 1994... Prior studies indicate that insider buying (selling) activity precedes positive (negative) abnormal returns that persist over relatively long horizons.(1) Presumably, investors may benefit from knowledge of previous insider trades, and consistent...

The valuation effects of equity issues and the level of institutional ownership: evidence from analysts' earnings forecast. (includes appendix)
March 22, 1994... Equity issues are an infrequent but extremely important vehicle for raising capital. A number of studies have documented a significant negative stock price reaction to announcements of new equity issues. In a survey of some of these studies,...

Liquidity changes associated with open market repurchases.
March 22, 1994... Prior to the tax-law changes of 1986, stock repurchases received favorable tax treatment relative to cash dividends, yet more than 80% of New York Stock Exchange (NYSE)-listed firms did not use repurchases for distributing value to their...

Corporate dividend policy response to the Tax Reform Act of 1986.
March 22, 1994... * Passage of the Tax Reform Act (TRA) in the fall of 1986 brought about a dramatic realignment in the taxation of dividends and capital gains. In particular, the new tax law lowered the top personal marginal tax rate for dividends from 50%...

A spanning approach for estimating divisional cost of capital.
March 22, 1994... Two techniques are available for estimating divisional cost of capital: the analytical approach and the pure-play approach. Each has its own implementation hurdles. The analytical approach assumes systematic connections between various...