Previous studies have shown that stock returns bear a premium for downside risk versus upside potential. We develop a new risk measure which scales the traditional CAPM beta by the ratio of the upside beta to the downside beta, thereby incorporating the effects of both upside potential and...

We examine the ability of co-founders of a firm to create an artificial (or “homemade”) dividend as in Miller and Modigliani (1961) . We employ traditional discounted valuation in showing that the act of creating an artificial dividend may decrease the value of the firm because it can divert...

We develop an indicator of project uncertainty via the sensitivity of the IRR to any assumption regarding which performance scenario for the project is most relevant. The most relevant scenario represents the performance (into the future) that we should project (as compared to any we actually...

Existing approaches to the financial lease versus purchase decision assume, at least implicitly at the moment of the decision, that purchase entails ownership of the leasable asset over its entire remaining economic life. At any subsequent moment in time, however, if a firm already owns the...

Evidence from the corporate finance literature indicates that diversified firms trade at a discount to otherwise comparable specialized firms. However, very little research has addressed whether a similar diversification discount might exist in equity REITs that diversify across property types...