Purpose – Capital structure decisions rely on a complex array of theoretical foundations and practical considerations. At the managerial level, it is impractical to base decisions purely on theory. While one can develop a perception of an optimal capital structure, the decision is often...

While some authors propose that the existence of an ESOP will add to firm value by aligning the incentives of employees with those of the shareholders, others argue that ESOP participants will use their ownership voice to push for increasing wages and benefits, to the detriment of the...

We analyze three short-term return metrics (Close-to-Open, Open-to-Close, and Close-to-Close) of stocks recommended by Jim Cramer on his CNBC show Mad Money. We differentiate among five different recommendations and across five different segments of the show. The objective is to determine if the...

Using a multi-period general equilibrium model, this paper extends the results of Mankiw (1991) by showing that monopolistically competitive firms may require 'relatively large' menu costs to dissuade them from changing prices in response to an aggregate demand shock that is perceived to be...

Since the beginning of summer 2008, the subprime mortgage market has become a contributing drag on the financial sector, with the S&P index dropping to its lowest level in more than a decade, and the Dow Jones Industrial Average falling below 10,000 for the first time since October 2004. The...