Questions concerning the effects of regulation on stock returns are important to regulators and investors. Analysts must carefully design and interpret empirical tests of hypotheses regarding the effects of regulation because of the nature of the regulatory process and financial markets. I...

The study of the stock price reaction to an event is a standard tool in economics and finance. The spate of regulatory changes in recent years provides ample opportunity for such studies. However, event studies of regulatory changes present a number of challenges. Analysts must carefully design...

Repurchases must be added to correctly estimate the value of a corporation with the discounted dividend model. Why this is so is illustrated with a simulation model. The appropriate repurchase-augmented formula is developed. Using data from two representative corporations, the large potential...

We examine the relationship between investment and saving for a cross section of European countries before and during the euro crisis. As has historically been found, investment is positively and significantly related to saving. This relationship shows evidence of being stronger during the...