Models for valuing an option to exchange one commodity for another, or any combination of n input commodities for some combination of m outputs, are applied to the capital budgeting problem, making it possible to draw sound conclusions about the valuation effects of flexibility and...

The Gramm-Leach-Bliley (GLB) Act of 1999 repealed many provisions of the Glass-Steagall Act that curtailed competition between banks and commercial firms. Significantly, however, the GLB Act did not repeal the constraint on banks from owning equity in commercial firms (quot;universal...

This paper examines whether PERCS, Preferred Equity Redemption Cumulative Stocks, have been properly priced with respect to the equivalent packages consisting of longing the common stock and shorting the long-term call option. Test results indicate that PERCS have been overpriced in comparison...

Value based incentive systems could be improved if they explicitly reward management actions that create or enhance the firm's real options. Such systems often focus exclusively upon cash flows relative to resource investment; yet, share values are often substantially greater than the amount...

In the business-to-business (B2B) sector, new supply-chain models within electronic marketplaces (eMarketplaces) offer firms significantly lower procurement costs, increased operating efficiencies, and expanded market opportunities. Using event-study methodology to look at the period July...

At the time of initiation, interest rate swaps are of zero market value to the counterparties involved. However, as time passes, the market value of the swap position of each counterparty may become positive or negative. These value changes are stochastic in nature and are primarily driven by...

This volume contains contributions on a range of important issues in current financial research. Topics included are - the performance of fixed income mutual funds in different economic states, the determinants of long-term excess performance of the ADRs on the NYSE, the models for forecasting...

Introduction / Andrew H. Chen -- Corporate ownership is not always the best policy / John W. Kensinger, Stephen L. Poe -- The information content of corporate investment announcements : the case of joint ventures / Arthur J. Keown, Paul Laux, John D. Martin -- An expanded study on the stock...