The study analyses the effect of statutory indemnity on securities class action settlement amounts. This is the first study that we are aware of to focus specifically on the association between directors' and officers' indemnification and securities class action settlement amounts. Corporate...

We propose a methodology that combines simulation and lattice methods to value American Parisian knock-in and knock-out options. Our methodology uses the observation that once the Parisian condition is met, the exercise strategy of a knock-in option is identical to that of a plain vanilla...

In this study, we examine the evolution of the arbitrage spread between 1990 and 2007 and find that since 2002 the arbitrage spread has declined by over 400 basis points (quot;bpsquot;). This decline is both economically and statistically significant. The decline in arbitrage spread corresponds...

We explore the relation between antitakeover provisions (i.e. managerial entrenchment) and firm performance in innovation. Empirical results indicate that an increase in antitakeover provisions is negatively related to number of patents and number of citations to patents. Thus managers who are...

Consider migration to a higher income region as a human capital investment in which parents bear migration costs and children share returns. Migrants from a population with heterogeneous intergenerational discount rates will be self-selected on intergenerational altruism. Thus, immigrants may be...

The subject of the paper is financial valuation of firm's knowledge assets and returns to innovation in the biotechnology industry, where such assets appear to play key role in the commercial success of a product. The biotechnology industry is extremely research-intensive, and successful R&D...

The U.S. Orphan Drug Act provides R&D incentives to drug-makers that go beyond statutory patent protection. The study explores the act's effect on financial returns to innovation and on the strategy of orphan drug development. Results indicate that the financial return to orphan drug development...

Recent theoretical literature suggests that the magnitude of the systematic risk premium for a multistage investment project is subject to various forces that may cause the premium to change across stages. To test this hypothesis, I investigate whether Capital Asset Pricing Model (CAPM) beta...