This study examines 663 divestiture announcements in Australia from 1987 to 1997. Such Australian data allow independent tests of numerous hypotheses documented in comparable studies on U.S. data. Valuation effects in response to such announcements are consistently, however weakly, positive for both the divesting parents and the acquiring firms.
Does risk aversion lead to softer or fiercer competition? To give a complete answer, I provide a framework that can accommodate a wide range of alternative assumptions regarding the nature of competition and types of uncertainty. I show how more risk aversion will influence a firm’s best response strategies, and that competition is unambiguously softer [...]
Substantial parts of the literature concerning capital structure have dealt with issues regarding the leverage ratios. These leverage ratios have been analyzed in all kinds of ways, where most studies have explained observed patterns. Our research will also deal with leverage ratios but in an entirely new way. Our problem concerns the practical matter of [...]