Asset sales, firm performance, and the agency costs of managerial discretion

Article Abstract:

A theory of asset sales is described. This specific theory explains management's decision to sell as an offshoot of the search for the cheapest financial source that would support its goals rather than as a necessary step towards ensuring operational efficiency. The announcement of asset sale does not generate positive movement in the company's stocks contrary to popular hypotheses. Positive stock reaction only occurs when the selling party has been observed to be willing to pay out sale proceeds.

Assets (Accounting)

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Inside directors, board effectiveness, and shareholder wealth

Article Abstract:

The expected costs of managerial entrenchment is clearly outweighed by the expected benefits of an inside director's expert knowledge only when managerial and outside shareholder interests are closely aligned. This is strongly suggested by stock-price effects of insider appointments. Stock-market reaction to an insider appointment is significantly positive when inside directors own between 5% and 25% of shares, and significantly negative when the ownership is less than 5%.

Security and commodity exchanges, Board of Directors-Functions, Corporate directors, Boards of directors

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Trade size, order imbalance, and the volatility-volume relation

Article Abstract:

A new study investigates whether trade size, trade volume and order imbalance increases daily price volatility for both the New York Stock Exchange and Nasdaq stocks.

New York Stock Exchange Inc., NASDAQ Market System

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