摘要:

This paper examines the sources of pre‐bid announcement abnormal returns (ARs) accruing to target companies’ shareholders. To control for publicly available information, targets are classified as either identified or unidentified. The paper finds that prior disclosure of bid related information does give rise to pre‐bid ARs. For identified targets there is no evidence that these ARs arise from trading on unpublished price sensitive information. For unidentified targets, trading on unpublished price sensitive information may give rise to ARs, although these ARs could be explained by stakebuilding. ARs do not occur prior to the first bid news item, a result contrary to previous US st

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1994.tb00331.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

This paper reconsiders the accepted usage of nondeflated financial ratios in statistical models to differentiate between failed and nonfailed firms. Non‐deflated ratios are hypothesized to inadequately reflect inter‐temporal macroeconomic fluctuations that affect the ability of firm's to survive. Using a sample of 124 oil and gas companies between the period 1982–1988, the going concern assumption is evaluated with statistical logit models using either nondeflated or deflated financial ratios. Deflated company ratios are created by transforming data with price indices or by creating market value ratios. Empirical results suggest that a superior bankruptcy early warning model is developed for the oil and gas industry by creating real financial and reserve ratios and by introducing external factors, such as oil prices, interest rates and accounting method, as independent predictors. Overall classification accuracy is approximately 95 pe

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1994.tb00332.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

This paper examines the ‘regulation effect’ of bond ratings of yield. It is shown that the high yield premia on ‘speculative bonds’ not only reflect the high probability of default, but also contain an effect of regulation. A multiple discriminant analysis (MDA) technique is used to separate the default component of yield premium from the regulation effect. The results in the study suggest that non‐regulated investors, by taking advantage of the regulation effect, may earn an extra premium on a diversified portfolio of ‘speculative bonds’, at least for the period under this study (from January 19

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1994.tb00333.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

This paper examines the reaction of rational investors to unexpected information across the world's major markets. The empirical results provide considerable support for the Uncertain Information Hypothesis and limited support for the Overreaction Hypothesis. In addition, it is found that investors are compensated for post‐event increased volatility across these major market

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1994.tb00334.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

The purpose of this paper is to determine why net income adjusted for depreciation and amortization (NOF) is a strong predictor of financial distress. This paper develops four‐state ordinal financial distress models lagged one, two, and three years before financial distress to test NOF, instead of using dichotomous bankrupt and nonbankrupt models. The results of this paper suggest that NOF is a strong predictor of financial distress because NOF is an alternative measure of economic income, not because NOF is a naive measure of operating cash flow. For this study, NOF is even a better measure of economic income than net incom

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1994.tb00335.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

Previous research on unit management buyouts, UMBs, has shown that selling firms benefit from the selloff transaction. The current research demonstrates that when the selling firm has either poor liquidity or poor earnings, selling firm shareholders do not benefit as much. We hypothesize that the unit managers have knowledge about the selling firm's difficulties so they do not pay as large a premium for the assets. Since the unit managers technically are employed by the selling firm shareholders, their bargaining to achieve a better price is an agency cost. Finally, selloff frequency does not affect seller abnormal returns.

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1994.tb00336.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

It is often assumed that cash flow affects dividend payout. This study provides evidence on the incremental information content of cash flow numbers over Profits and Previous Year's Dividends (Lintner's model) in explaining changes in cash dividends. It further examines whether different measures of cash flow differ in information content for dividend‐increasing and dividend‐decreasing firms. Lintner's model of dividend changes is robust across firms with either dividend increases or decreases. The null hypotheses, that no definition of cash flow adds to the model, could not be rejected for any of the definiti

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1994.tb00337.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

This study provides additional evidence on the share price effect of takeover barriers such as antitakeover charter amendments, dual classes of common stock, and poison pill plans. The share price reaction to the construction of takeover barriers is found to be negative but insignificant. However, when disaggregated by type, significant negative share price reactions are found on construction of poison pill plans. New evidence on the possible relationship between firm performance and takeover barrier construction is also presented. The results of this study suggest that management of ‘efficiently‐run’ firms may construct takeover barriers to deter value‐diminishing ta

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1994.tb00338.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

Conflicting results have been reported regarding the existence of a weekend effect in S&P 500 index futures. Given the numerous evidence in recent research that asset returns are affected by conditional heteroskedasticity and have fat‐tailed distributions, this paper re‐examines the existence of a weekend effect in S&P 500 index futures by using a GARCH model. The results generated by the new methodology support the conclusion of Cornell (1985) that there is no weekend effect in S&P 500 index futu

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1994.tb00339.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY

摘要:

In this paper we examine the relationship between the Modified Internal Rate of Return (MIRR) and a project's expected holding‐period rate of return assuming that cash flows are reinvested at the cost of capital. When cash flows are uncertain, the MIRR overstates the expected holding‐period rate of return. The relationship between the MIRR and a project's expected holding‐period rate of return is shown to be a simple function of conventional project statistics like the coefficient of variation of the present value of random cash flows, the profitability index, the cost of capital, and the project's

ISSN:0306-686X    

DOI:10.1111/j.1468-5957.1994.tb00340.x

出版商:Blackwell Publishing Ltd    

年代:1994

数据来源: WILEY