We study 120 rights offerings by closed-end funds over 1988-1998. On average, rights offerings are announced when funds trade at a premium. This premium turns into a discount over the course of the offering. The premium decline is more severe when the increases in investment advisor's...

The number of non-U.S. firms listing their equity on U.S. stock exchanges has increased dramatically. While non-U.S. firms may seek U.S. listings for a variety of reasons, we focus on one often-mentioned motive, namely, that a U.S. listing enhances access to external capital markets. We document...

CEO compensation has been much debated in the 1990s, both in academic circles and in the media. We contrast two views on CEO compensation. The first view is that there has been a very positive trend in CEO compensation - that compensation committees have become more responsive to shareholder...

In 1992-1993, the SEC required enhanced disclosure on executive compensation and Congress enacted tax legislation, i.e. Internal Revenue Code Section 162(m), limiting the deductibility of non-performance related compensation over one million dollars. We examine the effects of these regulatory...

The links between interest rates, cost of capital, hurdle rates, and capital allocation have been remarkably weak during the last few years. For instance, whereas the current yield on the World Government Bond Index is a paltry 1.2%, survey evidence suggests that the median reported investment...

Chinese companies have grown rapidly over the past few decades, and become increasingly global in the process. In the past five years, the aggregate market capitalization of public companies in China increased more than ten‐fold and their revenue from outside China grew 60%. Nevertheless,...

In Merton (1987), idiosyncratic risk is priced in equilibrium as a consequence of incomplete diversification. We modify his model to allow the degree of diversification to vary with average idiosyncratic volatility. This simple recognition results in a state-dependent idiosyncratic risk premium...

This study analyzes corporate expenditures for property, plant and equipment (PP&E) and research and development (R&D) for over 2,500 firms from 1987 to 1994. We document a positive relation between expenditures for PP&E and R&D and institutional share ownership. This relation is robust to a...

Cusatis, Miles and Woolridge (1993) report large positive excess stock returns following spinoffs for the parent firms that undertake the spinoffs and for the spun off subsidiaries themselves. They examine the period 1965 through 1988 and consider returns for up to 36 months following the...