The divergence of ownership and management in modern capitalism gave rise to agency theory as a framework for analysing corporate governance. There is now an emerging body of literature questioning the wisdom of the focus on agency theory in business schools. We argue that the poverty of agency...

Evidence in financial markets of an opportunity for pure arbitrage, and therefore a violation of the law of one price, is considered an anomaly to be noted. This paper reports an apparent violation of the law of one price between UK government gilts and their separately traded principal and...

This paper utilizes out-of-sample forecasting experiments to examine whether the yield spread or returns on stock indices provide information content for future real activity in Italy, the UK, USA and Germany. A variable is said to provide information content if it improves the quality of the...

Analysts' ability to forecast earnings per share has been the subject of considerable debate. A concern highlighted in previous research is the agency problem which may arise when analysts have a close working relationship with the firms for which they are providing forecasts. This paper...

Although there has been a proliferation of papers reporting results of event studies in recent years, few papers provide an analysis of the underlying distributions of the data employed and utilise parametric tests regardless of normality violations although the parametric tests tend to...

Companies with surplus ACT are faced with additional tax costs if they use dividends to signal information to investors, hence there is a trade-off between tax costs and signalling benefits. This paper provides evidence that investors' reactions to dividend surprises are influenced by the signal...

This paper determines the market value of dividends in the UK during periods before and after 1997. Previous studies, which use the ex-dividend day method, tend to provide noisy and potentially biased measures of dividend value. We estimate the value of dividends from the prices of shares that...

Frank and Jagannathan (1998) compare ex-dividend drop in share price to the dividend paid in a tax-free environment and argue that market microstructure effects may explain a ratio of less than one. This study examines whether the results are supported in the UK gilt market where tax effects are...

The motives for takeovers in the UK are investigated by examining the correlations between wealth gains for the target and both acquirer wealth gains and total wealth gains. The results are sensitive to whether the gains are measured over a long or short window, the method of measuring abnormal...

This study examines the definition of the UK deposit savings account market. A testing procedure is used to ascertain if the law of one price and the assumption of a unified national market may or may not be rejected The existing UK and European literature on the definition of financial services...