In this paper we examine the effect of corporate diversification on the equity issue process. In a sample of 641 equity issues conducted over the 1983-1994 time period, we find evidence that equity issues by diversified firms are viewed less negatively by the market than are equity issues by...

We examine the effect of corporate diversification on the equity issue process in a sample of 641 equity issues from 1983 to 1994. We find that issues by diversified firms are viewed less negatively by the market than are issues by focused firms. This finding supports the hypothesis that...

Related party transactions are potential mechanisms for insiders to expropriate outside shareholders via self-dealing; however, there are also possible benefits to these arrangements for outside shareholders. This paper investigates the frequency, nature, and valuation consequences of related...

Related party transactions (RPTs) are potential means for insiders to expropriate outside shareholders via self-dealing. There are, however, possible benefits to these arrangements for outside shareholders. We find that the overall volume of disclosed RPTs is generally not significantly...