Financial Management articles from September 2002

Financial Management archives from September 2002

Open-market repurchase announcements and stock price behavior in inefficient markets.
September 22, 2002... I ask why a firm would choose to buy back its outstanding shares after the stock price goes up in response to an open-market repurchase announcement. I introduce the subject of market inefficiency and establish a signaling equilibrium that does...

Wealth effect of drug withdrawals on firms and their competitors.
September 22, 2002... In this paper we examine the impact of a drug withdrawal on shareholders of firms and their direct competitors. We find shareholders suffer significant wealth losses when there are reports of adverse drug reactions and when the firm actually...

Profits from technical trading rules.
September 22, 2002... I examine the predictability of daily returns for the Dow Jones Industrial Average by comparing the technical trading rules developed by Allen and Karjalainen (1999) with moving average rules studied by Brock, Lakonishok, and LeBaron (1992). I...

An examination of board stability and the long-term performance of initial public offerings.
September 22, 2002... We study the long-term stock performance of initial public offerings (IPOs). We examine how past performance affects the board of directors' stability and how changes in boards affect subsequent performance. We introduce a dynamic, scale...

Sources of hidden value and risk within tracking stock.
September 22, 2002... Tracking stock for a unit of a firm presumably allows the market to value and monitor that unit independently of the rest of the firm. Announcement of the creation of tracking stock elicits an abnormal share price response of 2.17% on average...