Financial Management Articles, Finance Case Studies, Papers, Ebooks, FM Resources

We propose and test a catering theory of nominal stock prices. The theory predicts that when investors place higher valuations on low-price firms, managers will maintain share prices at lower levels, and vice-versa. Using measures ...

The article studies how takeover defenses influence managerial incentives with respect to long term investments, excess liquidity and the amount of debt relative to equity. The article conducts a cross-sectional regression based on a sample ...

We research the consumption and investment range of a time-additive power utility investor and display how the investor need to optimally hedge changes in the opportunity set. The investor is permitted to purchase stocks and ...

This statement discloses a state-of-the-art support system for Tactical Asset Allocation. Asset allocation describes over 90% of portfolio performance (Brinson, Hood and Beebower, 1988). Tactical asset allocation tunes a strategic portfolio based on short term ...

Hedging involves the transfer of price change risk of an asset fiom the owner of the asset to others who are willing to bear this risk. In this paper we investigate hedging a stock portfolio with ...