We examine the effect of corporate spinoffs on the trading environment of the stock of firms that spinoff units. Spinoffs change the information environment of firms. The increased precision and quantity of information will change the relative advantage of informed traders. Consistent with...

Executive stock options and convertible securities can increase the number of common shares outstanding while adding less than the market value of the newly issued securities to a firm's assets. We model the effect of expected dilution on the earnings/return relation. Expected dilution...

This paper investigates the systematic variation of stock price reactions to corporate capital budget announcements. We first use an event study methodology to measure the market's reaction to capital investment announcements. These reactions are then regressed upon measures of agency problems...

Executive stock options and convertible securities can increase the number of common shares outstanding while adding less than the market value of the newly issued securities to a firm's assets. We model the effect of expected dilution on the earnings/return relation. Expected dilution...

We examine the economic consequences of the Ontario Securities Commission's requirement that firms disclose details of executive pay in proxy statements. Before 1993, Canadian firms only reported executive compensation in the aggregate. We predict the increased availability of compensation...

This paper examines the longer-term relation between CEO cash compensation and changes in firm value. Following the methodology of Jensen and Murphy we find that the sensitivity over longer windows (6 to 10 years) is on average nine times greater than the one year sensitivity reported in Jensen...