SRMA Annual Statement Studies

TOC

• 5: The Board of Directors and Dual-Class Recapitalizations
  Curtis J. Bacon, Marcia Millon Cornett, Wallace N. Davidson, III
  There are two conflicting hypotheses regarding the effects of dual-class common stock recapitalizations. One holds that the shareholders with voting rights improve the position of all shareholders because of their ability to negotiate a better takeover price. The other contends that the recapitalization can be used by management to entrench themselves in a takeover situation. This study examines the characteristics of the firms that choose dual-class recapitalizations and shows that both types of behavior are evident and that the composition of the board explains which type of behavior a firm is likely to exhibit.

• 23: The Role of Outside Directors in Bank Acquisitions
  Vijaya Subrahmanyam, Nanda Rangan, Stuart Rosenstein
  Banking law appears to limit the available pool of qualified directors. This study finds-in contrast to nonfinancial firms-a negative relation between abnormal returns and the proportion of independent outside directors on the board of directors of bidding banks.
• 37: Evidence of Selling by Managers After Seasoned Equity Offering Announcements
  Michael Gombola, Hei Wai Lee, Feng-Ying Liu
  Significant insider selling continues after a seasoned equity offering (SEO) is announced. This finding is consistent with earlier studies showing that equity offerings are undertaken by companies whose stock is overpriced. The study also suggests that the stock of firms that employ SEOs stays overpriced for several months after the offering.
• 54: Layoff Announcements: Stock Market Impact and Financial Performance
  Oded Palmon, Huey-Lian Sun, Alex P. Tang
  Announcing a layoff decision could trigger either an increase or decrease in firm value, depending upon whether adverse market conditions or efficiency improvement are motivating it. Layoff announcements often contain information that indicates the motivation. This article finds that the layoff announcement is a useful signal for investors. There are significantly positive (negative) abnormal stock returns around the announcement date for firms that cite efficiency improvements (demand declines) as the reason for the layoffs.

CONTEMPORARY ISSUES

• 69: Treasury Management: Job Responsibilities, Curricular Development, and Research Opportunities
  Aaron L. Phillips
• 82: Market Response to Product-Strategy and Capital-Expenditure Announcements in Singapore: Investment Opportunities and Free Cash Flow
  Sheng-Syan Chen, Kim Wai Ho
• 89: A Comparison of the Market Reaction to Specially Deisgnated Dividends and Tender Offer Stock Repurchases
• 97: Executive Summaries
• 104: Announcements and Advertisements

SRMA Annual Statement Studies