Managerial Finance: Volume 28 Issue 12

Financial buyers in Takeovers: focus on cost efficiency

Halina Frydman, Roman Frydman, Susanne Trimbath

This paper examines whether financial buyers are more likely to initiate takeovers of inefficient firms. We show that they indeed are and thus conclude that takeovers by financial…

Utility sector mutual funds: sources of performance and dividend policy implications

Edward S. O’Neal, Daniel E. Page

We examine the sources of performance for a sample of mutual funds that invest primarily in utility companies. Given recent deregulation developments in the utility industry and…

Real options: a commercial bank lending application

Yoon K. Choi, Stanley D. Smith

We extend existing real‐option theories by incorporating the stochastic interaction between unit price and cost, applied in commercial bank lending. We further empirically examine…

Real options: valuing flexibility in strategic mergers and acquisitions as an exchange ratio swap

Hemantha S.B. Herath, John S. Jahera

In recent years, practitioners and academics have argued that traditional discounted cash flow (DCF) valuation models do not adequately capture the value of managerial flexibility…

An examination of the benefits for privately‐held and mutual insurers’ CEOs following an IPO

Kulkanya Napompech, Mark Kroll, Roger Shelor

This study examines compensation changes among top executives of formerly privately held stock insurers and mutual insurers at the time around an initial public offering. This…