In theory, political risk is project‐specific and should be accounted for in the estimation of the expected investment cash flows. But in practice, the political risk associated with this type of investment is typically accounted for implicitly by adjusting the investment's required rate of...

The authors analyze the economics of natural gas production in the U.S. in light of the government's recent dramatic upward revisions in gas reserve estimates as a result of advances in horizontal drilling and fracturing (“fracking”). While some observers believe the U.S. will enjoy very...

Distress or vulture investing requires a high level of business acumen combined with deep knowledge of accounting, finance, and corporate and restructuring law. In this paper, the authors provide a pedagogical discussion of an important - and socially beneficial - kind of vulture investing...

This paper examines whether differences in investment opportunities and corporate ownership structure can explain the disparate findings of other researchers with regard to the market's price reaction to the announcement of international joint ventures. We study a sample of 320 joint ventures...

Although often viewed as inconsistent with the corporate goal of value maximization, the corporate social responsibility (CSR) movement can add value by helping companies develop and maintain their reputations for fair dealing with each of their important non-investor stakeholder groups,...

In the summer of 2008 the authors of this article met with Boone Pickens to discuss the centerpiece of the Pickens plan for moving the U.S. toward energy independence: the feasibility of wind power as a source for the production of electricity. That meeting, along with their survey of published...