Financial Management articles from September 1995

Financial Management archives from September 1995

The choice of going public: spin-offs vs. carve-outs. (includes appendix)
September 22, 1995... Considerable research has attempted to explain the motivations that underlie organizational changes, such as mergers and corporate asset divestitures, and to quantify the efficiency gains that result from those transactions. For example, Jensen...

Who opts out of state antitakeover protection?: the case of Pennsylvania's SB 1310. (Senate Bill)
September 22, 1995... Despite evidence that shareholders of takeover targets reap considerable abnormal returns (see, for example, Jarrell, Brickley, and Netter, 1988, and Jensen and Ruback, 1983), numerous states have enacted legislation intended to impede the...

The relationship between corporate compensation policies and investment opportunities: empirical evidence for large bank holding companies. (includes appendix)
September 22, 1995... The existence and determinants of an optimal corporate policy for compensating top executives are unresolved issues in corporate finance. This paper investigates whether the firm's set of investment opportunities drives the amount and type of...

Monitoring versus bonding: shareholder rights and management compensation. (includes appendix)
September 22, 1995... Few aspects of corporate governance command as much press and government interest as the issue of compensation of chief executive officers.(1) Median compensation of chief executive officers (CEOs) of the 1,000 largest U.S. firms was $1.276...

Deregulation, reregulation, equity ownership, and S&L risk-taking. (savings and loans)
September 22, 1995... Research on non-financial firms generally supports the hypothesis that corporate value is a function of the structure of equity ownership (Jensen and Murphy, 1990, and McConnell and Servaes, 1990). However, little research has been done on this...

Exchange risk sensitivity and its determinants: a firm and industry analysis of U.S. multinationals.
September 22, 1995... Exchange rate variability is a major source of macroeconomic uncertainty affecting firms in an open economy. Exchange rate fluctuations affect operating cash flows and firm value through the translation, transaction, and economic effects of...

An empirical study of ex ante risk premiums for the electric utility industry.
September 22, 1995... Several studies published in recent years support an inverse relationship between utility equity risk premiums and interest rates during the first half of the 1980s. Our study provides a more current examination of this relationship. Our findings...