Equity ownership and the two faces of debt

Article Abstract:

The link between corporate value, debt and equity ownership is explored. Specifically, the performance of three samples of firms were investigated for the years 1976, 1986, and 1988, respectively. The results reveal a negative correlation between corporate value and leverage for high-growth companies and a positive correlation between the two variables for low-growth firms. These suggest that the allocation of equity shares between insiders and outside investors is more important to companies with fewer investment opportunities.

Stocks, Capital stock, Corporate growth, Growth companies

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Earnings signals in fixed-price and Dutch auction self-tender offers

Article Abstract:

The theory that the signal in fixed-price self tender offers should be more robust than the signal in Dutch auction self-tender offers was examined through the analysis of Dutch auction samples from 1981 to 1994. Fixed-price corporate tender offers during the 1960s and 1970s were connected with excess stock returns and a corresponding development in corporate performance. However, no differences in excess stock returns for both fixed-price self tender and Dutch auction offers were observed.

Cash Management, Financial Management, Cash flow, Stock redemption, Tender offers (Securities), Tender offers

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The other January effect

Article Abstract:

The extent to which market returns estimated for the month of January help in determining the stock returns for the remaining part of the year is examined.

United States, Capital funds & cash flow, Analysis, Valuation, Future value, Return on assets

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