We examine the relationship between corporate capital investments and the business cycles. Specifically, we test whether the stock market exhibits different reactions to corporate capital expenditures under various business conditions, and provide evidence that US firms' capital expenditures...

"Inspired by the Coase (1937) theory of the firm, we analyze the performance of Healy, Palepu, and Ruback (1992) sample of merged firms over a ten-year period using a managerially controlled efficiency measure, data envelopment analysis (DEA). Our individual, firm-level, year-by-year analyses...

A data processing procedure, DEA (Data Envelopment Analysis) is described as as an analytical tool in audit engagement. DEA receives data inputs from from financial statements of a plurality of clients, constructs efficiency frontiers and evaluates relative income efficiencies. DEA can be used...

Rating agencies are expected to be concerned about their long-term reputation because if they lose the trust of investors their ratings would lose credibility and value. We expect that there is less effective monitoring and hence more opportunities for ratings shopping within speculative grades...