Financial Management articles from March 2004

Financial Management archives from March 2004

Do firms time equity offerings? Evidence from the 1930s and 1940s.
March 22, 2004... We investigate whether the timing of equity sales to exploit market overvaluation may account for the reported poor post-offer stock performance of firms issuing equity. We posit that rights offers, targeted to a firm's current shareholders,...

Determinants of premiums on self-tender offers.
March 22, 2004... We investigate why firms pay a premium when making a tender offer to repurchase shares, and if the size of the premium is related to the elasticity of the supply curve for the firm's stock. We find that premiums on self-tender offers are...

Tick size, order handling rules, and trading costs.
March 22, 2004... We show that the effect of the tick-size change on NASDAQ spreads depends critically on the Order Handling Rules (OHR). Our empirical results show that the tick-size reduction has no impact on the spread of NASDAQ issues that were not subject...

Purchase and redemption patterns of US equity mutual funds.
March 22, 2004... I decompose net flows into purchase and redemption rates for a sample of equity funds. I find a strong relation between purchase rates and redemption rates indicating a significant clientele of rapid fund traders. I also find that investors...

The value of corporate control and the comparable company method of valuation.
March 22, 2004... The comparable company method of valuation does not account for the value of corporate control. Therefore, the method must be adjusted if it is being used to value a company involved in a change-of-control transaction. We provide two...