In this study we integrate evidence about managers' personal beliefs about their firms' prospects into an analysis of managerial decisions on acquisitions and takeover resistance. We examine insider trading (a proxy for personal beliefs) around significant corporate acquisitions and find little...

While excessive regulation is an obstacle to the development of financial markets, we argue that lack of basic rules or poorly enforced regulation may explain the relative importance across countries of banking and security markets in financing firms. A selective or arbitrary enforcement...

This study investigates economic causes and consequences of large corporate divestitures between 1983 and 1987. Prior empirical evidence suggests that firms hold on to poorly performing operating units for many years before divestiture. An agency-cost explanation for 'holding on to losers' has...

This paper studies the informational content of takeover bids in correlated environments and provides an explanation for the empirical result that industry rivals of takeover targets exhibit positive share-price reactions on the announcement of a bid. © 1997 John Wiley & Sons Ltd.

Data envelopment analysis (DEA) is used to create a measure of managerial efficiency in an attempt to reassess the conflicting theories concerning the impact of organizational performance on manager succession, and the counter-theories concerning the impact of manager succession on...

This study investigates the effect of transaction cost considerations on the apportionment of residual bearing, and the assignment of managerial control between two firms involved in the exchange of business know-how. Data were collected from contractual agreements between multinational...

This exploratory paper reports a pilot study of the impact of random period duration on the trading behaviour observed in experimental financial markets. Results reported in earlier experimental studies, many of which report a flurry of trade just prior to the end of a trading period, may have...

This paper shows that insider trading reduces outside searchers' trading profits and thus their incentive to search for information. This reduces social welfare since allocation decisions are made with less information. Non-mandatory disclosures are also socially undesirable for identical...