It is a fairly common practice for the CEOs of one corporation to serve on the Board of Directors of another corporation. The question addressed here is the effect that the presence of outside CEOs on the Board of Directors has on the compensation of the firmÕs CEO. There are two alternative...

This paper studies how the working capital position of small firms responds to changes in the level of economic activity. Fifty small firms were studied for the time period 1980-1991. The findings from this study showed that liquidity increased slightly for these firms during economic expansion...

Poison pill securities can be used to deter takeover activity by making the acquisition cost prohibitive or to increase bargaining power of target firms. Poison pills, which are also known as shareholder rights plans, are typically used in conjunction with other takeover defense mechanisms, such...

This study examines the effect of inflation on stock returns in the context of the policy reaction function theory. This theory contends that the nature and extent of the governmentÕs policy reaction to inflation will depend upon the current level of economic activity. A contractionary policy,...

This study investigates the effects of CEO succession on the stock and Þnancial performance of large publicly held corporations over the years 1977-1994. Using a market signaling framework, this study examines how the stock market responds to the expected Þnancial performance of the Þrm at...

Community banks are the smallest of the commercial banks in the United States. They have been bracing to cope with the impact of interstate banking, with the distinct possibility of large banks encroaching on their hitherto protected market territories. The challenge for these banks has been one...

This research examines the ability of firms to utilize the existing primary U.S. metal futures markets in decreasing variability of spot metal positions. The focus of the analysis is on those twenty-one U.S. cash metals listed in the Wall Street Journal which have an intrinsic relation with (at...

This paper is an event time study of the valuation effects of a sample of eighty-two permanent closings. The traditional approach to project termination decisions suggests that common stock prices should increase around the date on which firms publicly announce the termination of a projects....

A change in the value of one variable often provides information about related variables. This study examines the degree to which changes in the prime interest rates in the United States and Canada are associated. Utilizing a sample of 321 prime rate changes in the two countries through the 197...