Traditional macroeconomics finds a multiplier of 1.0 when taxes and expenditures are increased by the same amount. It results from uniform tax increases and a constant marginal propensity to consume. We show that a greater multiplier results when the tax rate increases on those with a lower...

This study attempts to explain why the equity market earns greater returns for bearing risk when a Democrat is President in the USA versus a Republican. We look at data from 1929 through 2012. The data show that the value weighted return minus the corresponding period's risk free rate is 10.83%...

The on-the-run phenomenon is regularly found in the bond markets. The on-the-run phenomenon is the yield difference observed when a new bond issue comes to market from the same issuer and gets a better price (lower yield given equivalent duration) from the market than the older issue. This paper...

Traditional macroeconomics finds a multiplier of 1.0 when taxes and expenditures are increased the same amount. It results from uniform tax increases and a similar constant marginal propensity to consume. I show that a greater multiplier results when the tax rate increases on those with a lower...

Tender offers provide an ideal setting for the analysis of agency relationships since the best interests of the principal (target firm shareholders) and agent (target firm managers) are often in conflict. Moreover, the actions and stated rationale of target managers in resisting or not resisting...

In spite of the increased level of merger and takeover activity, and the intense interest of researchers in the subject, many important questions about tender offers remain unanswered. For example, what determines the size of bid premiums? Can we predict whether or not a tender offer will be...

This study Investigates the influence of the type of investment opportunities facing a firm on its choice of capital structure. It is shown that the more discretionary investment opportunities a firm faces,the lower its financial leverage. Inclusion of other possible determinants of capital...