Financial Management back issues from September 2008:
How much does expertise reduce behavioral biases? The case of anchoring effects in stock return estimates.(Report)
Sep 22, 2008; ... We use data from surveys involving 300 Scandinavian financial market professionals and 213 university students to conduct three controlled experiments in which we manipulate the background information given to subjects. We find a very large anchoring effect in the students' long-term stock ...
Corporate debt issuance and the historical level of interest rates.(Report)
Sep 22, 2008; ... Using a sample that comprises more than 14,000 new issues of corporate debt for the period 1970-2001, we examine the relation between debt issues and the level of interest rates relative to historical levels. Consistent with recent survey evidence, we find that companies issue more debt, ...
Earnings and equity valuation in the biotech industry: theory and evidence.(Report)
Sep 22, 2008; ... We examine how the price-earnings relation varies with the uncertainty about and the quality of a firm's investments. We develop a real option valuation framework to capture investment and abandonment options in the research-intensive biotechnology industry. We hypothesize that the ...
Does financial distress risk drive the momentum anomaly?(Report)
Sep 22, 2008; ... This paper brings together the evidence on two asset pricing anomalies--continuation of prior returns (momentum) and the market mispricing of distressed firms--using UK data. Our analysis demonstrates both these effects are driven by market underreaction to financial distress risk. In ...
What is the cost of financial flexibility? Theory and evidence for make-whole call provisions.(Report)
Sep 22, 2008; ... Firms commonly incorporate make-whole call provisions in their newly issued debt, presumably to improve their ability to retire debt early if circumstances require. In return for increased financial flexibility, firms must compensate bondholders with additional (incremental) yield. To ...
Portfolio manager ownership and mutual fund performance.(Report)
Sep 22, 2008; ... This paper examines the association between a mutual fund manager's personal fund investment and mutual fund performance. From a data set of newly released managerial ownership disclosures, I find that fund ownership levels are diverse and, in many instances, quite large. Mutual fund ...
The impact of past syndicate alliances on the consolidation of financial institutions.(Report)
Sep 22, 2008; ... The impact of past syndicate alliances on the consolidation of financial institutions is examined. The odds of two lenders combining increases with the intensity and exclusivity of their prior syndicated loan alliances. The impact is higher for international mergers and acquisitions (M&As) ...
How Preussag became TUI: a clinical study of institutional blockholders and restructuring in Europe.(Report)(Company overview)
Sep 22, 2008; ... Between 1997 and 2004, Preussag, a diversified German conglomerate of "old economy" businesses, transformed itself into TUI, a company focused almost entirely on tourism and logistics. We analyze how Preussag executed this change, and how the change contributed to Preussag's ...