We find that the announced withdrawal of mergers involving private targets produces negative and significant valuation effects on the bidder's stock on average. This result is distinctly different from the valuation effects for merger withdrawals involving public targets. These unique results...

For shareholders of a mutual fund, the expense percentage represents the only factor whose daily effect on the change in the value of their portfolio is known in advance. Expense percentages may be used in an assessment of the variation in efficiency levels across various mutual fund size...

This study develops arguments explaining why agency costs are more pronounced for firms with higher degrees of multinational business. Empirical tests are conducted to determine whether firms with more exposure to foreign markets have greater agency costs than less exposed firms. Specifically,...

Recent research has shown that ownership restructuring decisions by firms can enhance value. In particular, Allen and McConnell (1998) find that carve-outs elicit a favourable share price response for parent firms at the time the carve-outs are reported. One explanation is that a carve-out...

The objective is to measure how the values of firms are affected when experiencing shareholder activism. According to several researchers, firms can benefit from increased monitoring. If activism prompts managers to focus more closely on shareholder goals, it could enhance firm value over time....

The accounting fraud of Enron and other firms prompted acquirers to be more diligent before investing in companies. The fraud also led to the creation of the Sarbanes-Oxley Act (SOX), which contains provisions that require more due diligence for firms that pursue mergers. We document significant...

In this article, we assess the stock price performance of 184 firms emerging from Chapter 11 bankruptcy between 1980 and 2006. We find their mean post-bankruptcy performance to be similar to the performance of their size and-book-to-market control firms, as well as to the performance of their...

A bank acquisition affects the combination of financial services that are offered, and the potential synergy between services. Consequently, an acquisition can affect the performance and risk of the bank. While much research is focused on bank acquisitions and other financial institutions, there...

A partial acquisition represents a unique form of corporate restructuring because it alters the ownership structure of two entities (in opposite ways), and therefore alters the form of control over the target's management. The proportion of the partial target that is owned by other shareholders...

While exchange-traded funds (ETFs) are being created at a rapid rate, there is very limited research on how they affect the component stocks that they contain. We find that in response to the inception of ETFs, there are positive and significant valuation effects on the dominant component stocks...