The 1992 Czechoslovak mass privatization program resembled a multi-round Walrasian auction with tatonnement, in which participants, endowed with points, bid simultaneously for non-uniform products, i.e., shares. The creation of this artificial primary market provides economists with a unique...

type="main" <p>In Finance 101, future corporate managers are taught that the social mission of public companies is to maximize their own longrun (or “intrinsic”) value by investing in all positive net present value (NPV) projects—that is, projects that are expected to earn at least their...</p>

Kevin Kaiser and Aris Stouraitis present preliminary evidence on stock market reaction to divestiture announcements by European firms. Included in their sample are divestitures by French, German, Swedish and UK firms. Their findings include: (1) stock price reaction during initial announcements...