Investor valuation of the abandonment option

Article Abstract:

Investors are found to have the option to abandon the firm for its exit value, as the uncertainty about future cash flows is resolved. A positive and significant relation is seen between market value and estimated exit value in terms of the levels, changes and various methods of estimating the value of future cash flows. A given amount of book value is seen to have a more positive influence on market value when more of the book value derives from certain categories of assets.

Finance, Investors, Valuation, Abandonment of property, Abandonment (Law)

---

The determinants of organizational form changes: evidence and implications from real estate

Article Abstract:

Organizational form changes in the real estate industry in the US are dependent on the financial and operational stature of the concerned real estate firms. Troubled real estate firms move to a less constricted organizational form while also paying smaller dividends. On the other hand, healthy firms are more likely to move to a more constricted structure, while providing larger dividends. Taxes are also a consideration in initiating structural change.

Other Activities Related to Real Estate, REAL ESTATE, Real Estate Services, Management, Real estate industry, Organizational change

---

Asset sales and increase in focus

Article Abstract:

The purpose of divestiture or asset sales is described. Corporations generally engage in such an activity out of the need to increase specialization or focus. It is shown that the restructured firm has been able to improve its performance within a three-year period after the divestiture. This improvement presupposes that the firm has increased its focus. Furthermore, stock price reactions are positive for such specializing firms.

Economic aspects, Corporate divestiture, Divestiture

Similar abstracts:

• Abstracts: The sensitivity of long-term interest rates to economic news: evidence and implications for macroeconomic models
• Abstracts: An experimental examination of demand reduction in multi-unit versions of the uniform-price, vickrey, and English auctions
• Abstracts: Information and contagion effects of bank loan-loss reserve announcements
• Abstracts: Price variability and price dispersion in a stable monetary environment: evidence from German retail markets. Why do prices rise faster than they fall? With an application to mortgage rates
• Abstracts: High inflation rates and the long-run money demand function: evidence from cointegration tests. The monetary model of exchange rates: evidence from the Canadian float of the 1950s

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.