Using a hand-collected data, we provide evidence of extensive use of commodity derivative in hedging among U.S oil and gas producers. We find large variations in hedging intensity and hedging profits while on average they generate significant positive profits. The profits relate positively to...

Using economic distress in an industry as a natural experiment, we test the alternate theories of conglomeration. We find that segments in distressed industries experience better performance than single-segment firms. The distressed segments have higher sales growth, higher Ramp;D expenditure...

We show that large public companies in the United States change the assumptions of the benefit formulas of the defined benefits pension plans for their top executives in anticipation of plan freezes and executive retirements. In particular, on average top executives receive a boost in annual...

While half of all acquisition targets are sold in negotiated deals with only one buyer rather than by auction, the wealth effects for target shareholders are surprisingly similar in both auctions and negotiations. This begs the following questions: why do companies frequently avoid auctions and...

Boone and Mulherin (2007) document the private firm sale process and find that the wealth eff ects for target shareholders are comparable in both auctions and negotiations. Since auctions are more costly relative to negotiations, this begs the question of whether firms should use auctions. We...

Focusing on economic distress episodes in an industry, we estimate the effect of conglomeration on resource allocation. Distressed segments have higher sales growth, higher cash flow, and higher expenditure on research and development than single-segment firms. This is especially true for...