We examine the empirical predictions of a real option-pricing model using a large sample of data on mergers and acquisitions in the U.S. banking sector. We provide estimates for the option value that the target bank has in waiting for a higher bid instead of accepting an initial tender offer. We...

This dissertation examines the profitability and management of public US corporations since the 1950s. I argue that a shift in their ability to turn a profit helps us understand why today’s corporations are run more as portfolios of assets than as organic wholes. Even while aggregate corporate...