Measuring investment distortions arising from stockholder-bondholder conflicts

Article Abstract:

The nature of stockholder-bondholder conflicts concerning capital-structure choice was examined by using numerical techniques to calculate the anticipated wealth transfer which occurs once a firm initiates a new project. Two sets of net present value projects both positive and negative which stockholders wanted either to accept or reject were identified. The distortions between stockholders and bondholders were due to various factors, such as the firm's debt level, correlation of a project's cash flow, the amount of an investment, and the firm's tax rate.

Stockholders, Capital investments, Present value, Bondholders

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CEO turnover and the firm's investment decisions

Article Abstract:

The relation between corporate divestiture and management turnover is examined. After a management change, there is a high probability that a poorly-performing acquisition will be sold. The study likewise suggests that management turnover is an essential part of reversing managerially-motivated acquisitions. The study also revealed that personal practices and general strategic approaches are more likely to change once new corporate officers assume their posts.

Management research

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World markets for raising new capital

Article Abstract:

International debt and equity issues between 1990 and 2001 are analyzed taking into consideration market timing. Market timing is an important security issue in several countries.

United States, International aspects, External debts, Equity (Finance), Market timing

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