Financial Management articles from March 2002

Financial Management archives from March 2002

The interactions between R&D investment decisions and compensation policy.(Statistical Data Included)
March 22, 2002... Roy A. Wiggins, III (*) We use a system of equations to investigate the endogenous relation between R&D investment and CEO compensation. Growth opportunity is positively related to the use of stock options. Stock options positively affect...

Are stock splits credible signals? Evidence from short-interest data.
March 22, 2002... Michael R. Vetsuypens (*) We propose the change in short interest as a new metric of the signaling strength of a corporate event. If an event signals positive information, short interest should decline at the event announcement. We study...

Why firms diversify: An empirical examination.(Statistical Data Included)
March 22, 2002... J. David Diltz (*) There is substantial evidence to suggest that the market placed a lower value on diversified firms than on specialized firms during the 1980s, yet many firms diversified anyway. This article addresses why firms diversify...

Value creation from equity carve-outs.(Statistical Data Included)
March 22, 2002... J. Randall Woolridge (*) Using a large sample of equity carve-out events during the 1980s and 1990s, we find that rivals of carve-out parent firms display negative announcement-period returns. This finding distinguishes the divestiture...

The Modigliani and Miller theorem and integration of financial markets.
March 22, 2002... Sheridan Titman (*) Most of the recent literature on risk management and capital structure examines settings where the markets for different securities, (e.g., debt, equity, and derivative markets) are perfectly integrated. This paper...