Reinterpretation of the shareholder gains in selloff transactions

Article Abstract:

Selloff usage has increased because it facilitates restructure. Previous research shows that whilst selling firms gain from selloffs, buyers fail to do as well. Research has failed to embrace buyer and seller prosperity effects. The study re-analyses the announcement period prosperity effects od selloffs in securities. Results show that some selloffs are synergistic and other occur when there is a wealth transfer between buyer and seller. Future studies should concentrate on buyers' characteristics, sellers and portfolios.

Stocks, Statistics

---

A test of the tax-induced leverage hypothesis in convertible securities: a note

Article Abstract:

The relevance of the tax-induced leverege hypothesis in convertible securities is being questioned in the light of recent evidence associating negative stock returns with convertible preferred stock and convertible debt. To ascertain whether there is a tax-induced leverage on securities or not, convertible debt and convertible preferred stock transactions are compared withcommon stock returns. It is indicated that there is no tax-induced leverage on convertible debt and convertible preferred stock transactions.

Leverage (Finance), Leverage, Convertible bonds, Convertible preferred stocks

---

Institutional bond pricing and information arrival: the case of bond rating changes

Article Abstract:

The effects of a bond rating change or placement on Standard and Poor's CreditWatch list on a firm's bond prices is investigated using weekly bond quotations from the Merrill Lynch Institutional Bond Pricing Service and rating announcements by Standard and Poor from 1982 to 1984. Bond prices are shown to be sensitive to rating reductions, specially when the new rating crosses bond grades. Placement on Standard and Poor's CreditWatch list does not seem to affect firms' bond prices.

Investment advice, Security & commodity services, not elsewhere classified, Evaluation, Services, Bonds, Bonds (Securities), Merrill Lynch & Company Inc., Rating agencies (Securities)

Similar abstracts:

• Abstracts: Restaurant chain no longer flavour of the month. Grab a slice of the action. Ask Central
• Abstracts: International accounting disharmony: the case of intangibles. Financial institutions, intangibles and corporate governance
• Abstracts: How to compensate close corporation owners without violating nondiscrimination rules. Failure to meet nondiscrimination test will result in inclusion of fringe benefits
• Abstracts: The presentation sensation. What's in a logo. Comdex: too big or just right?
• Abstracts: Bank errors: take charge over your account. Payroll perspective. Banking on technology

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.