Financial Management articles from March 1999

Financial Management archives from March 1999

Underwriter certification and the effect of shelf registration on due diligence.(includes appendix)
March 22, 1999... In 1982, the Securities and Exchange Commission (SEC) introduced several changes intended to streamline the process of issuing seasoned securities in the US. One effect of these changes was to increase the cost of the due-diligence...

A modified version of the Lewellen and Badrinath measure of Tobin's Q.(includes appendix)
March 22, 1999... Tobin's Q is defined as the ratio of the market value of a company's financial claims to the replacement value of its assets. If Q is greater than one, the inference is that the market assesses current asset values more highly than it would the...

Board composition and regulatory change: evidence from the enactment of new companies legislation in New Zealand.
March 22, 1999... Boards of directors are widely recognized as useful mechanisms for monitoring the performance of managers and protecting shareholders' interests (e.g., Fama and Jensen, 1983). Numerous studies (e.g., Hermalin and Weisbach, 1988; Bathala and...

Ownership structure, charter value, and risk-taking behavior for thrifts.
March 22, 1999... In the 1980s, the thrift and banking industries in the United States suffered declining profits, rising systemic risk, and the failure of more than 700 savings and loans (S&Ls) and 1,200 banks. The Government Accounting Office estimates the...

Shareholders' gains from corporate expansion to the Republics of the Former Soviet Union.(includes appendix)
March 22, 1999... Dramatic changes have occurred in the Republics of the Former Soviet Union (RFSUs) in recent years, resulting in movements towards the democratization of the political and social processes.(1) As a result of, or perhaps as an impetus for, these...

Bid-ask spreads in multiple dealer settings: some experimental evidence.
March 22, 1999... In this paper, we use an experimental economics method to examine bid-ask spreads in multiple dealer settings. Important multiple dealer markets include the stock market made by the National Association of Securities Dealers Automated Quotation...

Current perspectives on shareholder proposals: lessons from the 1997 proxy season.
March 22, 1999... We present a comprehensive analysis of the 1997 proxy season as a basis for describing shareholder proponents' use of the proxy mechanism under the US securities laws. Shareholders who wish to put a proposal to a shareholder vote rely on Rule...

Market risk for foreign currency options: Basle's simplified model.
March 22, 1999... In 1988, the Basle (Switzerland) Committee on Banking Supervision of the Bank for International Settlements established minimum capital requirements for financial institutions' credit risk. The Committee's objectives were to strengthen the...