A common method of valuing the equity in leveraged transactions is the flows-to-equity method whereby the free cash flow available to equity holders is discounted at the cost of equity. This method uses a standard definition of equity free cash flow, but the cost of equity varies over time as...

This paper examines the unification of non-voting preference shares into a one share one vote structure using a sample of all German dual-class companies from 1987 until 2003. We test several hypotheses with regard to the reasons for the abolition of preference shares.First, as the separation of...

This paper proposes a new wealth-dependent utility function for the inter-temporal consumption and portfolio problem, in which the subsistance (bliss) con-sumption level is a function of wealth. Ratchet effects obtain when higher wealth in-creases the subsistance consumption level; blas´...

This paper studies the short- and long-run announcement effects of declaring compliance with the German Corporate Governance Code (the Code). We examine a unique, hand-collected data set of 317 German listed firms from 2002-2005. First, we present evidence from an analysis of firms compliance...

Fremdkapital trägt häufig auch als Gläubigerkapital unternehmerische Risiken mit. Dies wirft im Zusammenhang mit der WACC-Handhabung verschiedene Fragen auf...

Die analytisch korrekte Bestimmung von DCF-Unternehmens- und Projektwerten ist nicht trivial...

Finanzielle Mittelanlagen sollten stets eine risikogerechte Rendite erbringen. Dies gilt für Aktien ("risidual claims") in gleicher Weise wie für zinstragende 'Aktiven ("debt contracts"). Risiko-Rendite-Betrachtungen müssen dabei in verschiedener Hinsicht differenziert erfolgen...

Recent empirical work shows that a better legal environment leads to lowerexpected rates of return in an international cross-section of countries. Thispaper investigates whether differences in firm-specific corporate governancealso help to explain expected returns in a cross-section of firms...

Die aktuelle Corporate Governance Literatur stützt die verbreitete Hypothe-se, dass sicht „gute“ Corporate Governance durch eine höhere Unterneh-mensbewertung manifestiert. Die Mehrzahl der empirischen Studien unter-sucht jedoch nur ausgewählte Corporate Governance Mechanismen...

Using a comprehensive set of listed Swiss companies, our findings suggestthat the size of the board of directors is an independent control mechanism.However, in contrast to previous studies, we do not find a significant rela-tionship between board size and firm performance. This suggests that...