It is a fairly common practice for the CEOs of one corporation to serve on the Board of Directors of another corporation. The question addressed here is the effect that the presence of outside CEOs on the Board of Directors has on the compensation of the firmÕs CEO. There are two alternative...

This study investigates the determinants of profitability of U.S. commercial banks in the 1970s and 1980s. It is established that banks, depending on their size, may need to exercise greater control over a defined set of variables in order to maximize profits and/or minimize costs. Further, the...

This study evaluates the success of the monthly withdrawal of funds from hypothetical retirement portfolios for the period January 1930 to December 2001. The objective of this research is to provide an empirical examination of the historical effect of global diversification on the withdrawal of...

Common stock prices and returns are alleged to depend on how corporate earnings progress over time. This paper investigates at the aggregate level how certain components of corporate earnings impacted stock market prices during the 1977-93 period. The impact of market multipliers on stock market...

A dual-class share structure allows managers or original owners to retain control of a Þrm, while providing public equity Þnancing. In the U.S., a Þrm generally issues superior-voting shares to managers or original owners, and inferior-voting shares to the public. As a result of the...

This paper studies how the working capital position of small firms responds to changes in the level of economic activity. Fifty small firms were studied for the time period 1980-1991. The findings from this study showed that liquidity increased slightly for these firms during economic expansion...

Poison pill securities can be used to deter takeover activity by making the acquisition cost prohibitive or to increase bargaining power of target firms. Poison pills, which are also known as shareholder rights plans, are typically used in conjunction with other takeover defense mechanisms, such...

This study examines the effect of inflation on stock returns in the context of the policy reaction function theory. This theory contends that the nature and extent of the governmentÕs policy reaction to inflation will depend upon the current level of economic activity. A contractionary policy,...

This study investigates the effects of CEO succession on the stock and Þnancial performance of large publicly held corporations over the years 1977-1994. Using a market signaling framework, this study examines how the stock market responds to the expected Þnancial performance of the Þrm at...