This paper examines the influence of a firm’s business model on the relative persistence of profit margins in the U.S. airline industry. The strategic management literature describes a firm’s business model as reflecting how that firm chooses to compete in the marketplace. Given this linkage...

<heading id="h1" level="3" format="inline" implicit="no">Abstract: </heading>This paper examines investors' anticipation and subsequent interpretations of asset write-downs accompanying segment divestitures. Examining long-window returns cumulated over the two years preceding the year of divestiture, we hypothesize and find that investors anticipate...

This study extends research into whether shareholder rights and disclosures of financial-related attributes are associated with firms' costs of equity capital. Using cost-of-equity-capital estimates derived from expected earnings growth valuation models, we find that firms with stronger...

This paper investigates the effect of management entrenchment on the cost of equity capital. Using the Bebchuk et al. (2009) entrenchment index data from 1989 through 2002, and using mainly the Ohlson and Juettner-Nauroth (2005) method to estimate the cost of capital, we find that increases...