A Fast Literature Search Engine based on top-quality journals, by Dr. Mingze Gao.
- Topic classification is ongoing.
- Please kindly let me know [mingze.gao@mq.edu.au] in case of any errors.
Your search
Results 324 resources
-
Given the normality assumption, the author rejects the mean-variance efficiency of the Center for Research in Security Prices value-weighted stock index for three of the six consecutive ten-year subperiods from 1926 to 1986. However, the normality assumption is strongly rejected by the data. Under plausible alternative distributional assumptions of the elliptical class, the efficiency can no longer be rejected. When the normality assumption is violated but the ellipticity assumption is maintained, many tests tend to be biased toward overrejection and both the accuracy of estimated beta and R ('superscript'2) are usually overstated.
-
This paper argues that default plays an important positive role in the economy. If markets are incomplete and traders are only able to enter into contracts that they will be able to execute regardless of future events, contingent contracting may be severely restricted. Moreover, opening new markets may not relieve these restrictions. Default promotes efficiency in a way that opening new markets does not by making it possible for traders to enter into contracts that they will be able to execute with high probability but not with certainty. Copyright 1993 by American Economic Association.
-
This paper models the optimal choice of shareholder liability. If investors want managers to be monitored, the monitors should be residual claimants (shareholders), and monitoring and firm value will increase as shareholders commit more of their wealth to the firm. When liquidating wealth is costly, contingent liability dominates direct investment as a wealth commitment device; however, if wealth is unobservable, under this regime only relatively poor investors will hold shares in equilibrium. This may be prevented at a cost by verifying shareholder wealth and restricting stock transfers. Comparative statics on various liability regimes are used to motivate actual contractual arrangements.
-
In aggregate, options on real and financial assets can have very different properties. Typically, the good or service produced by a real asset has a finite elasticity of demand, and developers have finite capacities. Also, the supply of options can be limited, and developers can be less than perfectly competitive. In a subgame, perfect Nash equilibrium with these properties, the optimal exercise policy, and resulting values of developed and undeveloped assets are calculated explicitly. The novel comparative statics are discussed in detail.
-
Announcements of successful leveraged buyouts (LBOs) during January 1985 to April 1989 caused a significantly negative return on outstanding publicly traded nonconvertible bonds. Yet the average risk-adjusted debt holder losses are less than 7 percent of the average risk-adjusted equity holder gains. Bond losses are related to the pre-LBO rating, but only weakly to equity holder gains. We demonstrate that trader-quoted data from a major investment bank offers conclusions about the effects of LBOs on debt holders different from those drawn from commonly used matrix and exchange-based data (such as Standard & Poor's Bond Guide data). This has important implications for event studies involving debt instruments.
-
Two popular selling methods–posted-price selling and auctions–are compared here in an independent private-values model. Without auctioning costs, auctioning is always optimal. When auctioning is costly, auctions are still preferable if the marginal-revenue curve is sufficiently steep. The global steepness of the marginal-revenue curve is found to coincide with the dispersion around the mean for a number of standard distributions. Finally, the prices of the monopoly seller and of the social optimum are compared. Copyright 1993 by American Economic Association.
Explore
Journals
Topic
- Bond (17)
- CEO (1)
- Director (1)
- Mergers and Acquisitions (1)
Resource type
- Journal Article (324)