This paper examines whether financial buyers are more likely to initiate takeovers ofinefficient firms. We show that they indeed are and thus conclude that takeovers byfinancial buyers play a potentially beneficial role in the allocation of corporate assets in the U.S. economy. Our analysis of...

The usual tool for modeling bond ratings migration is a discrete, time homogeneous Markov chain. Such model assumes that all bonds are homogeneous with respect to their movement behavior among rating categories and that the movement behavior does not change over time. However, among recognized...

We consider estimation of a quantile from a discrete distribution. This gives rise tothree new ideas, the confidence set for such a quantile, the notion that the associatedconfidence level can be increased after the data are collected, and that it is legitimateto strive to obtain a singleton...

This study, using the Cox proportional hazards model, finds that the risk of takeover rises with cost inefficiency. It also finds that a firm faces a significantly higher risk of takeover if its cost performance lags behind its industry benchmark. Moreover, these findings appear to be remarkably...

Let X(t), t Atilde;cent;Acirc; Acirc;yen; 0, be a real or vector valued stochastic process and T arandom killing-time of the process which generally depends on the sample function. In thecontext of survival analysis, T represents the time to a prescribed event (e.g. system failure,time of disease...

We consider the process dYt = ut dt + dWt , where u is a processnot necessarily adapted to F Y (the filtration generated by the process Y)and W is a Brownian motion. We obtain a general representation for thelikelihood ratio of the law of the Y process relative to Brownian measure.This...

We give a counterexample to the Strong Bang-Bang Conjecture according to which any 3 - 3 embeddable matrix can be expressed as a product of six Poisson matrices. We exhibit a 3 - 3 embeddable matrix which can be expressed as a product of seven but not six Poisson matrices. We show that an...