Financial Management articles from March 2006

Financial Management archives from March 2006

Note from the editor.(new editorial team)(Editorial)
March 22, 2006... I am delighted to have been asked to serve as Editor of Financial Management, and I am grateful to Lemma Senbet, Alex Triantis and Jim Seward for making the transition so painless. We all owe the three of them a great debt of gratitude for...

Penny stock IPOs.(initial public offerings)
March 22, 2006... We examine underpricing, long-run returns, lockup periods, and gross spreads for penny stock IPOs over the 1990-1998 period. We find that penny stock IPOs have higher initial returns than ordinary IPOs, but significantly worse long-run...

Rights offerings and corporate financial condition.
March 22, 2006... Certain American industrial firms still use equity rights offerings. Most of these offerings are uninsured. I examine firms' financing decisions, and develop the explanation that rights offerings are used by firms in financial distress with...

Does hedging affect firm value? Evidence from the US airline industry.
March 22, 2006... Does hedging add value to the firm, and if so, is the source of the added value consistent with hedging theory? We investigate jet fuel hedging behavior of firms in the US airline industry during 1992-2003 to examine whether such hedging is a...

Executive stock options: to expense or not?
March 22, 2006... In analyzing the decision to expense stock options, we find a greater likelihood of options expensing for firms with greater transparency and a closer alignment of interests between managers and shareholders. These results provide indirect...

Does order flow commonality extend across trade sizes and securities?
March 22, 2006... We examine commonality in order imbalances across different types of securities and find that the extent of commonality is greater than previously documented. Order imbalances in portfolios of small stocks, large stocks, and closed-end funds...

Concentrated announcements on clustered data: an event study on biotechnology stocks.
March 22, 2006... In spring 2000, three events--two political statements by Bill Clinton and Tony Blair and a breakthrough announcement by Celera Genomics--had a major impact on biotechnology stocks. We analyze their effects over a comprehensive set of...