This study examines the impact of the degree of merger-related change in corporate focus on the long-run return to investors in mergers and acquisitions executed since 1977. Using a sample of 204 completed acquisitions, selected to be free of post-merger contaminating events, and a continuous...

Using a sample selection and benchmarking methodology designed to more accurately assess merger-related changes in corporate focus, we find a significantly positive relationship between corporate focus and long-term merger performance. We find that focus-decreasing (FD) mergers result in...

This paper introduces the necessary statistical background for portfolio theory in an intuitive manner. By using two asset portfolio examples, the financial concept of diversification emerges along with the statistical concepts of covariance and correlation. Further, an algorithm is produced for...

In our sample of 305 cash tender offers occurring between 1993 and 1998, we find evidence that the options market has become the preferred trading venue for informed traders. Given this result, we analyze individual call option contracts for those tender offer targets with traded options,...

In our study of the two leading stock exchanges in Chile - the Santiago Stock Exchange (SSE) and the Electronic Stock Exchange (ESE) - we find that the SSE exhibits a leadership role over the ESE in terms of transmission of returns and volatility. These results indicate that prior empirical...

Two asset portfolio mathematics is a fixture in many introductory finance and investment courses. However, the actual development of the efficient frontier and capital market line are generally left to a heuristic discussion with diagrams. In this paper, the mathematics for calculating these...

Two-asset portfolio mathematics is a fixture in many introductory finance and investment courses. However, the actual development of the efficient frontier and capital market line are generally left to a heuristic discussion with diagrams. In this article, the mathematics for calculating these...

We analyze herding behavior in the Chinese stock markets in the context of the COVID-19 pandemic using the cross-sectional absolute deviation (CSAD) model proposed by Chang et al. (2000) to detect herding behavior in the time period between January 30, 2001, and June 12, 2020. We consider stock...

Este artículo centra su atención en la relación entre desempeño de la firma y el grado de diversificación de la misma. La muestra consiste de 70 empresas chilenas para el período 2000-2007. Se encuentra que mientras mayor el grado de diversificación de la firma el desempeño es mayor....

This investigation is among the firsts to analyze the impact of corporate diversification in the firm value, controlling for shareholders ownership concentration, in companies listed in one of the most developed stock markets in America Latina – the Chile stock market. Our results describe a...