The existence of takeover premia is well established in the finance literature. This research motivates the existence of premia by utilising the concept of economies of scope which are empirically proxied by the 'closeness' of industries, and subsequently provides a theoretical framework for the...

The existence of takeover premia is well established in the finance literature. This research motivates the existence of premia by utilising the concept of economies of scope which are empirically proxied by the 'closeness' of industries, and subsequently provides a theoretical framework for the...

We examine the choice between accelerated share repurchase (ASR) and open market repurchase (OMR) as repurchase mechanisms between 2004 and 2007. For a sample of ASRs and OMRs that actually buy shares in the announcement quarter, we find that ASR firms have lower market-to-book ratios, less...

This paper examines the extent to which the profit versus loss heuristic directly affects debt issuance decisions. We hypothesize that reporting a loss and its use as a heuristic rather than firms’ economic fundamentals has an impact both on the decision to raise external debt finance and on...

We investigate the price performance of initial public offerings (IPOs) of formerly state-owned companies in Australia. On average, privatised IPOs in Australia are underpriced by about 11%, which is not significantly different from the magnitude of underpricing of the privately-owned IPOs and...

Australia is unusual among the world's antitrust jurisdictions in not making the pre-notification of mergers compulsory. However, if the parties are concerned that the Australian Competition and Consumer Commission (ACCC) is likely to object to the merger, there are strong incentives for them to...

We compare the prevailing system of compulsory pre-merger notification with the Australian system of voluntary pre-merger notification. It is shown that, for a non-trivial set of parameter values, a perfect Bayesian equilibrium exists in mixed strategies in which the regulator investigates...

We study the relationship between venture capital financing, CEO ownership, compensation structure, and board structures for a group of Australian IPO firms. Results suggest that board structures are influenced by the industry the firm is in, and presence of venture capitalists results in a...

This study evaluates the economics of the choice of form of payout initiation mechanism adopted by IPO firms. Our results suggest that IPO firms demonstrate a preference for repurchases over dividends as the specific form of payout initiation mechanism. We however, find that while the market...