Corporate divestments on the stock markets have been studied since long, but the main focus of previous studies has been the firm level impact of divestments. We take this discussion to the industry level and argue that divestments, on average, are carried out in industries, where opportunities...

In this paper we try to find out the impact of a carve-out on the standard deviation of earning per share (EPS) forecast (divergence of belief) and the number of analysts following the firm. We were expecting that the standard deviation of EPS forecast will decrease after the carve out as more...

According to Kremp and Sevestre (2013), French firms did not suffer from credit restriction during the period 2004-2010. This study seeks to identify the benefits of bank-firm relationships when credit is unconstrained. By using a unique set of data collected from a French relationship bank...

The process firms use to choose their capital structures is explained by different corporate finance theories in which trade-off and pecking order are the two most popular hypotheses. Testing these two models will help to determine whether a target debt ratio exists, and if so, how rapidly firms...

Dividends, particularly of acquiring firms are influenced by several structural adjustments especially after mergers. Using the dividend clientele hypothesis, we hypothesize that acquirer dividend policy is more likely to change after the merger if dividend policies of firms involved in a...

Analysis of the causes of failure has often been shallow. This paper proposes an explanation as to why some mergers fail to achieve, based on the comparison between merging firms' specifics. We argue that cancellation may stem from dividend policy dissimilarity between the acquirer and the...

Various studies have analyzed the main determinants of payment method in M&As since the 1980s. We examine how relative the existing dividend policy of the acquirer affects the choice of the payment method. Based on the contingent-pricing effect of stock offer, we hypothesize that the likelihood...

Various studies have analyzed the main determinants of payment method in M&As since the 1980s. We survey 2,260 US acquisitions to determine how relative the existing dividend policy of the acquirer affects the choice of the payment method. Based on the contingent-pricing effect of stock offer,...

On the stock market, the investors are not identical. The large investors like the institutional investors, have a significant financial effect and a different valuation of the firm from that of the small investors. When they purchase shares, these two groups are in competition. However, large...