Financial Management articles from March 1996

Financial Management archives from March 1996

Resolution of financial distress: debt restructurings via Chapter 11, prepackaged bankruptcies, and workouts.
March 22, 1996... From the 1980s to the present, there has been a tremendous increase in default rates and bankruptcy activity of publicly traded firms.(1) The increase in bankruptcy activity has been accompanied by significant innovations such as prepackaged(2)...

Price discovery on the NYSE and the NASDAQ: the case of overnight and daytime news releases.
March 22, 1996... The purpose of this paper is to examine the stock market response to earnings announcements made 1) during the trading day and 2) during the institutionally-imposed overnight period of no trading on the New York Stock Exchange (NYSE) and the...

Rearranging residual claims: a case for targeted stock.
March 22, 1996... Corporate restructuring activity has grown substantially in recent years as top managers struggle to improve firm performance and enhance shareholder value. In part, these transactions reflect an overall trend toward greater corporate focus....

Third-party certification in new issues of corporate tax-exempt bonds: standby letter of credit and bond rating interaction.
March 22, 1996... The question of third-party certification arises whenever the possibility of asymmetric information exists between corporate insiders and the investing public. This issue is particularly relevant when the security is being offered by a relatively...

Optimal trade credit limits.
March 22, 1996... Trade credit is granted by one business to another in connection with the sale of goods or services. A trade credit limit is a policy instrument that applies either a maximum dollar receivables balance or a maximum order amount to a specific...

The valuation of corporate R&D expenditures: evidence from investment opportunities and free cash flow.
March 22, 1996... Past research shows a significant market response to announced increases in R&D expenditures (Woolridge, 1988). However, the reaction depends on the firm's industry. The reaction is significantly positive for firms operating in high-technology...