We examine the announcement returns of acquisitions made by Indian firms during the period 1995 to 2011. Our results confirm that the announcement returns to Indian acquirers are on average significantly positive. However, we are first to document that the announcement returns to Indian...

Lonergan (2009) appropriately recommends that “discounted cash flow analysis should be configured on the basis of post-tax cash flows discounted with post-tax discount rates”. We generally agree with his recommendation when it is applied in discounted cash flow valuations, due to accounting...

We investigate two competing explanations for commercial bank distress during financial crises: liquidity shortages and solvency concerns. If liquidity shortages cause distress, a lender of last resort can help by providing funds to banks having trouble rolling over short-term debt and facing...

We investigate liquidity shocks and shocks to fundamentals during financial crises at commercial banks, investment banks, and hedge funds. Liquidity shock amplification models assume that widespread funding problems cause fire sales. We find that most banks do not experience funding declines...

We provide new insights into the determinants of acquirer announcement returns with a unique sample of targets that are acquired within three years of their IPOs. Existing studies of acquisitions of private and established public targets find positive relations between acquirer announcement...

A great deal of empirical research finds that stocks with low market-to-book (MTB) ratios have outperformed stocks with high MTB ratios. Rhodes-Kropf, Robinson, and Viswanathan (RKRV) (2005) separate the MTB ratio into a mispricing component and a growth options component. We investigate the...

We analyze the relation of private firms' CEO compensation with the probability of sale of a firm and its valuation at the time of the sale. Specifically, we study whether equity-based remuneration is consistent with compensating the CEO for effort related to selling the private firm, or with...