In 1987, the USAir Group acquired Piedmont Aviation for $1.6 billion in a cash tender offer. Prior to the merger, comparably sized USAir and Piedmont were among the most profitable carriers in the industry. Almost immediately after the integration of the two airlines, USAir became the industry's...

Two recent papers document a significant relation between valuation multiples and governance indices during the 1990s. We test whether causation runs from governance to valuation or vice versa. We find that valuation multiples during the early 1980s, a period preceding the adoption of the...

Since the revelation of accounting scandals at Enron, Worldcom, and several other high profile companies (quot;Enron et al.quot;) five years ago, there has been unprecedented public focus on U.S. corporate governance. A common view, articulated by many journalists, politicians, and public...

Two recent papers document a significant relation between valuation multiples and governance indices during the 1990s. We test whether causation runs from governance to valuation or vice versa. We find that valuation multiples during the early 1980s, a period preceding the adoption of the...

Christie and Schultz find that bid-ask spreads are wider and odd-eighth quotes less frequent in the Nasdaq market versus the NYSE and AMEX. They suggest that collusion among market makers may account for these results, while others offer efficiency-based explanations. This paper attempts to...

type="main" xml:lang="en" <title type="main">Abstract</title> <p>Theory is conflicted on the impact of equity-based compensation on managerial risk taking. We explore this issue by studying the relation between equity-based compensation and firms' propensity to make acquisitions. Consistent with the notion that equity-based...</p>

We provide new evidence on the monitoring benefits from institutional ownership by analyzing the impact of institutional ownership on stock price and operating performance following seasoned equity offerings, a setting where the effects of monitoring are likely to be especially important. We...