Corporate earnings and the equity premium
... in the stock market. The corresponding percentage increase in marginal utility JL is simply (0:95 1), or 69.4%. Thus, the event-risk premium is 0:01 0:694 0:750 ¼ 0:0052; or 0.52%. This simple example shows that the event-risk premium can be larger than the usual Mehra and Prescott (1985) con ...
... in the stock market. The corresponding percentage increase in marginal utility JL is simply (0:95 1), or 69.4%. Thus, the event-risk premium is 0:01 0:694 0:750 ¼ 0:0052; or 0.52%. This simple example shows that the event-risk premium can be larger than the usual Mehra and Prescott (1985) con ...
Do Tests of Capital Structure Theory Mean What They Say? ∗
... between leverage and the implied debt ratio, a variable whose change is entirely determined by one-year stock returns. This result seems surprising in an empirical context since it implies that corporations are largely passive as regards their issuance policy and yet we know from empirical studies t ...
... between leverage and the implied debt ratio, a variable whose change is entirely determined by one-year stock returns. This result seems surprising in an empirical context since it implies that corporations are largely passive as regards their issuance policy and yet we know from empirical studies t ...
Lally - The dividend growth model
... expected growth rate in dividends per share for existing companies might initially be larger than the expected GDP growth rate and then converge on a rate lower than that for GDP, so that the resulting MRP estimate approximates that provided by them, is valid in principle but CEG do not supply any a ...
... expected growth rate in dividends per share for existing companies might initially be larger than the expected GDP growth rate and then converge on a rate lower than that for GDP, so that the resulting MRP estimate approximates that provided by them, is valid in principle but CEG do not supply any a ...
MPF Scheme Series S800
... 2. Each of the Principal Capital Guaranteed Fund and the Principal Long Term Guaranteed Fund under this Scheme invests solely in an approved pooled investment fund in the form of an insurance policy issued by Principal Insurance Company (Hong Kong) Limited (“Principal”). The guarantee is also provi ...
... 2. Each of the Principal Capital Guaranteed Fund and the Principal Long Term Guaranteed Fund under this Scheme invests solely in an approved pooled investment fund in the form of an insurance policy issued by Principal Insurance Company (Hong Kong) Limited (“Principal”). The guarantee is also provi ...
Improving portfolio efficiency with absolute
... the American Association of Individual Investors (AAII) Asset Allocation Survey, where the historical equity allocation is 60%. In recent decades, this reliance on traditional asset classes has served investors well, as rising equity markets accompanied by falling interest rates have created a favor ...
... the American Association of Individual Investors (AAII) Asset Allocation Survey, where the historical equity allocation is 60%. In recent decades, this reliance on traditional asset classes has served investors well, as rising equity markets accompanied by falling interest rates have created a favor ...
Indexes and benchmarks made clear
... investment decisions, the passively managed index product designed to track an index is usually comprised of the same securities and at the same weights as the index on which it is based. Passively managed investments that track equity indexes are typically less costly than their actively-managed co ...
... investment decisions, the passively managed index product designed to track an index is usually comprised of the same securities and at the same weights as the index on which it is based. Passively managed investments that track equity indexes are typically less costly than their actively-managed co ...
Do Private Firms Perform Better than Public Firms?
... between public and private firms in the UK using the FAME database for 1993-2003 and Michaely 1 Issues that have been addressed include the link between: corporate governance and performance (e.g. Gompers, Ishii and Metrick (GIM, 2003), Bebchuk , Cohen, and Ferrell (2009), Bebchuk, Cohen, and Wang ( ...
... between public and private firms in the UK using the FAME database for 1993-2003 and Michaely 1 Issues that have been addressed include the link between: corporate governance and performance (e.g. Gompers, Ishii and Metrick (GIM, 2003), Bebchuk , Cohen, and Ferrell (2009), Bebchuk, Cohen, and Wang ( ...
Optimal Debt and Equity Values in the Presence of Chapter 7 and
... feature is the point of qualitative departure from Leland (1994), who allows for only one boundary, the liquidation boundary.6 It is important to point out at this stage that we are modeling financial rather than economical distress. Bankruptcy by itself is not going to cause poor performance.7 Rath ...
... feature is the point of qualitative departure from Leland (1994), who allows for only one boundary, the liquidation boundary.6 It is important to point out at this stage that we are modeling financial rather than economical distress. Bankruptcy by itself is not going to cause poor performance.7 Rath ...
Lock-In, Vertical Integration, and Investment: The Case of Eastern
... 4 Your firm’s parent company or affiliated subsidiaries 5 Large private domestic firms (those with approx. 250+ workers) (not including your parent company, if applicable) 6 Small firms and individuals 7 Other If a firm has significant sales to its own parent or affiliated subsidiaries (i.e. the firm re ...
... 4 Your firm’s parent company or affiliated subsidiaries 5 Large private domestic firms (those with approx. 250+ workers) (not including your parent company, if applicable) 6 Small firms and individuals 7 Other If a firm has significant sales to its own parent or affiliated subsidiaries (i.e. the firm re ...
Volatility and Premiums in US Equity Returns
... stocks for the next 50 years ends up with a lower average annual return than an investor who rolls over one-month T-bills. Indeed, no matter how long the investment period, one can never be perfectly certain that the realized average premium will be positive. Such is the nature of risk and return! T ...
... stocks for the next 50 years ends up with a lower average annual return than an investor who rolls over one-month T-bills. Indeed, no matter how long the investment period, one can never be perfectly certain that the realized average premium will be positive. Such is the nature of risk and return! T ...
NBER WORKING PAPER SERIES DYNASTIC MANAGEMENT Francesco Caselli Nicola Gennaioli
... or later end up “in the wrong hands,” i.e. those of a managerially inept descendant. If most firms in an economy are managed dynastically, therefore, aggregate TFP may be negatively affected. But why is dynastic management more prevalent in some countries than others? In our model the frictions that ...
... or later end up “in the wrong hands,” i.e. those of a managerially inept descendant. If most firms in an economy are managed dynastically, therefore, aggregate TFP may be negatively affected. But why is dynastic management more prevalent in some countries than others? In our model the frictions that ...
ALLOCATING FOR IMPACT - Global social impact investment
... This paper presents a series of frameworks to help both investors and policymakers do just that. In Chapter 1, we describe the various features that make impact investment an attractive proposition, for both governments and investors. In Chapter 2, we clarify the various terms used in the market and ...
... This paper presents a series of frameworks to help both investors and policymakers do just that. In Chapter 1, we describe the various features that make impact investment an attractive proposition, for both governments and investors. In Chapter 2, we clarify the various terms used in the market and ...
Agency Costs and the Performance Implications of International
... firm ownership and control can result in suboptimal management decisions from the vantage point of shareholders. For instance, agency theory has attributed poor acquisitions to managers' and shareholders' disparate objectives· and risk preferences and shareholders' imperfect monitoring of managers ( ...
... firm ownership and control can result in suboptimal management decisions from the vantage point of shareholders. For instance, agency theory has attributed poor acquisitions to managers' and shareholders' disparate objectives· and risk preferences and shareholders' imperfect monitoring of managers ( ...
Measuring Brand Equity of Restaurant Chains
... that a brand name adds to a product As a major player in or busines~.~ the corporate world and one with continued growth potential, food service firms should be well aware of the importance of brand equity. If service companies can provide economic worth for their brands that could partly explain th ...
... that a brand name adds to a product As a major player in or busines~.~ the corporate world and one with continued growth potential, food service firms should be well aware of the importance of brand equity. If service companies can provide economic worth for their brands that could partly explain th ...
TrustSM Target Date Collective Investment Funds
... Trust. PMC receives management fees from Principal Funds. The Collective Investment Funds maintained by Principal Trust may also include group annuity separate accounts (“Separate Accounts”) managed by Principal Life Insurance Company (“Principal Life”), an affiliate of Principal Trust. Principal Li ...
... Trust. PMC receives management fees from Principal Funds. The Collective Investment Funds maintained by Principal Trust may also include group annuity separate accounts (“Separate Accounts”) managed by Principal Life Insurance Company (“Principal Life”), an affiliate of Principal Trust. Principal Li ...
CEO Pay and Firm Size: an Update after the Crisis
... and firm size identified in GL.2 In 2004, the end of ‘free’ accounting for stock options has been followed by a shift toward restricted stock and then, toward the use of performance-based vesting conditions in equity grants (see Bettis et al., 2012). In 2006, the SEC promulgated new executive pay di ...
... and firm size identified in GL.2 In 2004, the end of ‘free’ accounting for stock options has been followed by a shift toward restricted stock and then, toward the use of performance-based vesting conditions in equity grants (see Bettis et al., 2012). In 2006, the SEC promulgated new executive pay di ...
ar 2005
... under four regional management structures covering the UK, Private Equity comprises the Group’s investments and carry Americas, continental Europe and Asia Pacific. The management of rights in private equity, venture and buyout funds and related international assets is concentrated in London and Sin ...
... under four regional management structures covering the UK, Private Equity comprises the Group’s investments and carry Americas, continental Europe and Asia Pacific. The management of rights in private equity, venture and buyout funds and related international assets is concentrated in London and Sin ...
AllianceImportance.Intro.1
... CEO of GE) “Microsoft can’t make it alone, but together anything is possible.” (Bill Gates, Chairman of Microsoft) “Our approach is to develop long term relationships with companies that offer a unique advantage with General Motors. The Alliance Strategy is our major thrust.” (John F. Smith, Jr., Ch ...
... CEO of GE) “Microsoft can’t make it alone, but together anything is possible.” (Bill Gates, Chairman of Microsoft) “Our approach is to develop long term relationships with companies that offer a unique advantage with General Motors. The Alliance Strategy is our major thrust.” (John F. Smith, Jr., Ch ...
not for release, publication or distribution, directly or indirectly
... that invests in venture capital, buyout, mezzanine debt, and distressed debt through primary partnerships, secondary purchases, and direct investments. Since 1984, HarbourVest has been a leading buyer of private equity assets, acquiring $8 billion of assets in over 350 deals of all stages, types, vi ...
... that invests in venture capital, buyout, mezzanine debt, and distressed debt through primary partnerships, secondary purchases, and direct investments. Since 1984, HarbourVest has been a leading buyer of private equity assets, acquiring $8 billion of assets in over 350 deals of all stages, types, vi ...
Version: March 14, 1999 - Duke University`s Fuqua School of Business
... A shift in the equity risk premium by just one percent could add or subtract $1 trillion in market value. In addition, corporate investment decisions hinge on the expectations of the risk premium (via the cost of capital) as do both U.S. and international asset allocation decisions. Therefore, it is ...
... A shift in the equity risk premium by just one percent could add or subtract $1 trillion in market value. In addition, corporate investment decisions hinge on the expectations of the risk premium (via the cost of capital) as do both U.S. and international asset allocation decisions. Therefore, it is ...
Download attachment
... the shares of underperforming companies on a large scale may be detrimental for pension funds, because of their adverse impact on share prices. However, less liquid markets need not necessarily lead to more shareholder activism, since the gains from private information are reduced, as pension funds ...
... the shares of underperforming companies on a large scale may be detrimental for pension funds, because of their adverse impact on share prices. However, less liquid markets need not necessarily lead to more shareholder activism, since the gains from private information are reduced, as pension funds ...
Mutual fund
... Discuss types of funds available to investors and the different kinds of investors services offered by mutual funds and exchange traded funds. Gain an understanding of the variables that should be considered when selecting funds for investment purposes. Identify the sources of return and calculate r ...
... Discuss types of funds available to investors and the different kinds of investors services offered by mutual funds and exchange traded funds. Gain an understanding of the variables that should be considered when selecting funds for investment purposes. Identify the sources of return and calculate r ...
The University of Akron Investment Policy Statement for Endowment Funds
... growth in principal and current income sufficient to support the University’s needs, while at the same time preserve the purchasing power of the Fund’s assets. It is recognized that the equity portion entails the assumption of greater market variability and risk. 6. The equity portion shall normally ...
... growth in principal and current income sufficient to support the University’s needs, while at the same time preserve the purchasing power of the Fund’s assets. It is recognized that the equity portion entails the assumption of greater market variability and risk. 6. The equity portion shall normally ...
The Going-Public Decision and the Product Market
... of the more than 2000 firms eligible to go public in the Pagano, Panetta, and Zingales (1998) sample went public in over ten years; of these, more than 40% were equity carve-outs. Further, the typical newly listed company in Italy is several times larger and older than its counterpart in the United ...
... of the more than 2000 firms eligible to go public in the Pagano, Panetta, and Zingales (1998) sample went public in over ten years; of these, more than 40% were equity carve-outs. Further, the typical newly listed company in Italy is several times larger and older than its counterpart in the United ...
why polish companies go public
... Despite the increasing interest in the decision to go public, the empirical evidence has been quite scarce, especially regarding companies from the Central Eastern European (CEE) region. The major reason for why empirical literature on this decision is underdeveloped is the difficulty in obtaining f ...
... Despite the increasing interest in the decision to go public, the empirical evidence has been quite scarce, especially regarding companies from the Central Eastern European (CEE) region. The major reason for why empirical literature on this decision is underdeveloped is the difficulty in obtaining f ...
Private equity in the 2000s
Private equity in the 2000s relates to one of the major periods in the history of private equity and venture capital. Within the broader private equity industry, two distinct sub-industries, leveraged buyouts and venture capital experienced growth along parallel although interrelated tracks.The development of the private equity and venture capital asset classes has occurred through a series of boom and bust cycles since the middle of the 20th century. As the 20th century ended, so, too, did the dot-com bubble and the tremendous growth in venture capital that had marked the previous five years. In the wake of the collapse of the dot-com bubble, a new ""Golden Age"" of private equity ensued, as leveraged buyouts reach unparalleled size and the private equity firms achieved new levels of scale and institutionalization, exemplified by the initial public offering of the Blackstone Group in 2007.