M&As should be defined to include joint ventures, alliances, and divestitures in addition to mergers and acquisitions. M&As represent a neoclassical theory of how firms seek to enhance their capabilities and resources (the good). Good M&As are positive net present value external investments....

In recent years, the literature of financial distress has been enriched by the development of formal models. This paper develops a synthesis of that formal analysis, linking it to related finance literature and corporate strategies for distressed financial restructuring. Several key assumptions...

In response to change pressures, the oil industry has engaged in multiple adjustment processes. The nine major oil mergers from 1998 to 2001 sought to improve efficiency so that, at oil prices as low as $11 to $12 per barrel, investments could earn their cost of capital. The Exxon-Mobil...

Net share repurchases have increased both in absolute terms and relative to cash dividends. Share repurchases during 1975-87 were predominantly fixed price tender offers and Dutch auctions, mainly signaling undervaluation. By 1994 open market repurchases (OMRs) represented over 95% of repurchase...

We identify four alternative performance metrics used in value based management (VBM). (1) Basic is an intrinsic value analysis (IVA), the discounted cash flow (DCF) methodology. (2) We show that this framework will be consistent with returns to shareholder (RTS, capital gains plus dividends)...

The paper provides a brief review of the analysis of pure financial leases. The second part solves the problem of evaluating the cancellable operating leases by using the Cox, Ross and Rubinstein binomial option pricing method. From the lessor's point of view a cancellable operating lease is...

In recent years, the literature on financial distress has been enriched by the development of formal models. This paper develops a synthesis of that formal analysis, linking it to related finance literature and corporate strategies for distressed financial restructuring. Several key assumptions...