Capital markets and corporate structure: the equity carve-outs of Thermo Electron

Article Abstract:

Thermo Electron Corp's decision to undertake equity carve-outs proved to be beneficial to the company's performance. A rise in shareholders' benefits was noted since Thermo Electron Corp decided to implement equity carve-outs in 1983. Through equity carve-outs, companies are permitted to adjust unit managers' compensation contracts based on the performance of their respective markets. Equity carve-outs also give company unit managers the power to undertake decisions related to capital acquisition and investment.

Process control instruments, Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables, Process Instruments, Controls, Instrument industry, Instrument industry (Equipment), Management, Process control equipment, Thermo Electron Corp., TMO

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Capital market imperfections and the incentive to lease

Article Abstract:

The decision by firms to lease fixed capital such as equipment is attributable to the need to cope with high financial contracting costs. The premium on external funds is reduced by lease financing. Tax incentives also play a part in the decision whereby firms with lower tax liabilities are more prone to resort to the lease of capital. The size of the firm is seen to be negatively related to the propensity to lease.

Research, Contracts, Fixed assets, Lease or buy decisions

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Do foreign investors destabilize stock markets? The Korean experience in 1997

Article Abstract:

The effects of foreign investors on stock returns in Korean between November 30 1996 to the end of 1997 are examined, based on order and trade data. Evidence of positive feedback trading and herding by foreign investors before Korea's economic crisis was found. However there is no evidence that there was a destabilizing effect on Korea's stock market due to trades by foreign investors.

South Korea, Foreign investments, Korea

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