Most leading finance textbooks introduce the Hamada formula to adjust the market beta for leverage effects. A debate has recently emerged in the literature (see Fernandez (2004), Cooper and Nyborg (2006a)) about the present value of tax shields (PVTS). The central issue is whether the PVTS can...

Using implied volatility surfaces provided by the Optionmetrics database for the period 2003-2007, this study documents the strong, positive relation between investor perceptions of firm uncertainty and financial analysts' activity. Granger causality tests reveal that an increase in perceived...

Using implied volatility surfaces provided by the Optionmetrics database for the period 2003–2007, this study documents the strong, positive relation between investor perceptions of firm uncertainty and financial analysts' activity. Granger causality tests reveal that an increase in perceived...