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...

Much concern has been expressed about the economic consequences of the high rate of merger and acquisition (M&A) activity. The total value of M&As in the United States in 1998 was $1.3 trillion. This was almost double the level of activity of the previous year. Is the accelerating rate of M&A...

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...

The 1990s have been called the era of strategic mergers. Powerful change forces have transformed the economic and financial environments. Global markets and exploding technologies have blurred industry boundaries and intensified competition. Strong economic growth and a rising stock market have...

Research concerning the pharmaceutical industry rate of return has concentrated on two policy issues: (1) possible resource misallocation and (2) the drug innovation environment. Accounting returns are suspect for policy purposes, requiring attention to the role of, and impact on, expectations...

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)...