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Investor Protection and Corporate Valuation

Porta, Rafael La - 1999

We present a model of the effects of legal protection of minority shareholders and of cash flow ownership by a controlling shareholder on the valuation of firms. We then test this model using a sample of 371 large firms from 27 wealthy economies. Consistent with the model, we find evidence of...

Persistent link: https://www.econbiz.de/10012471382

Innovation and Market Value

Hall, Bronwyn H. - 1999

Recent research on financial market valuation of the knowledge assets of publicly traded firms is surveyed. The motivation for using a market value equation to price knowledge assets is discussed and the theory behind this equation is briefly presented. Then the empirical literature that relates...

Persistent link: https://www.econbiz.de/10012471824

Is Stock Index Membership for Sale?

Li, Kun; Liu, Xin; Wei, Shang-jin - National Bureau of Economic Research - 2021

While major stock market indices are followed by large monetary investments, we document that membership decisions for the S&P 500 index have a nontrivial amount of discretion. We show that firms' purchases of S&P ratings appear to improve their chance of entering the index (but purchases of...

Persistent link: https://www.econbiz.de/10012660043

Collective Bargaining and the Division of the Value of the Enterprise

Abowd, John M. - 1987

The enterprise (firm) is modeled as a collection of formal and informal contracts providing various factors of production with claims on the income stream in consideration of assets or services supplied to the enterprise. The strongly efficient bargaining model implies that the division of the...

Persistent link: https://www.econbiz.de/10012476932

Tax Reform and Adjustment Costs : The Impact on Investment and Market Value

Auerbach, Alan J. - 1986

various tax changes on market value and its components, discounted pure profits and normal returns to capital, and to … decompose changes in the value of capital into changes in the marginal value of new capital and changes in the relative value of … new and existing capital. These measures are used to evaluate tax changes similar to those introduced by the recent U …

Persistent link: https://www.econbiz.de/10012476966

Irreversible Investment, Capacity Choice, and the Value of the Firm

Pindyck, Robert S. - 1986

Persistent link: https://www.econbiz.de/10012477092

Plant Closings, Labor Demand and the Value of the Firm

Hamermesh, Daniel S. - 1986

This study postulates an internal labor market in which workers accumulate firm-specific human capital that raises the …

Persistent link: https://www.econbiz.de/10012477237

Tax Reform, Investment, and the Value of the Firm

Auerbach, Alan J. - 1986

The taxation of corporate assets is well understood to influence investment and firm valuation. This paper explores the consequences of postwar U.S. tax changes in a dynamic model which incorporates costs of adjustment and investor expectations of future tax reforms and macroeconomic...

Persistent link: https://www.econbiz.de/10012477274

Inflation and the Valuation of Corporate Equities

Summers, Lawrence H. - 1981

This paper examines the relationship between inflation and the return on individual corporate securities. This question is of substantial importance in light of the puzzling behavior of the stock market over the last decade. Conventional financial theory holds that equity should be a good...

Persistent link: https://www.econbiz.de/10012478287

Expectations and Valuation of Shares

Malkiel, Burton G. - 1980

popular capital asset pricing model using a framework suggested by Ross for this arbitrage model. Alternative specifications …

Persistent link: https://www.econbiz.de/10012478669