Showing papers in "Journal of Financial Economics in 2000"

TL;DR: In this article, the authors argue that the legal approach is a more fruitful way to understand corporate governance and its reform than the conventional distinction between bank-centered and market-centered financial systems, and discuss the possible origins of these differences, summarize their consequences, and assess potential strategies of corporate governance reform.

TL;DR: The authors examined the separation of ownership and control for 2,980 corporations in nine East Asian countries and found that voting rights frequently exceed cash-ow rights via pyramid structures and cross-holdings.

TL;DR: In this article, the authors evaluate whether the level of development in the banking sector exerts a causal impact on economic growth and its sources-total factor productivity growth, physical capital accumulation, and private saving.

TL;DR: This paper found that stock prices move together more in poor economies than in rich economies, and this "nding is not due to market size and is only partially explained by higher fundamentals".

TL;DR: In this paper, the authors explain the extent of exchange rate depreciation and stock market decline better than do standard macroeconomic measures using measures of corporate governance, particularly the effectiveness of protection for minority shareholders.

TL;DR: In this article, the authors examine voting outcomes and short-term market reactions conditioned on proposal type and sponsor identity and find that proposals sponsored by institutions or coordinated groups appear to act as substitutes gaining substantially more support than those sponsored by individuals.

TL;DR: This paper found that the efficiency of capital allocation is negatively correlated with the extent of state ownership in the economy, positively correlated with firm-specific information in domestic stock returns, and positively associated with the legal protection of minority investors.

TL;DR: In this article, the extent to which past returns determine the propensity to buy and sell was analyzed using data from Finland, and it was shown that foreign investors tend to be momentum investors, buying past winning stocks and selling past losers.

TL;DR: In this paper, a wider-angle lens exposes an imposing image of commonality, showing that quoted spreads, quoted depth, andective spreads co-move with market and industry-wide liquidity.

TL;DR: In this article, three problems are identified that cause low power in value-weighted three-factor time series regressions when abnormal returns following managerial actions are being estimated, and illustrate the sensitivities in the context of the new issues puzzle as well as with simulations.

TL;DR: For example, this article found that in 11 developing countries that liberalized their stock markets, 9 experience growth rates of private investment above their non-liberalization median in the first year after liberalizing, while in the second and third years after liberalization, this number is 10 of 11 and 8 of 11, respectively.

TL;DR: In this paper, the authors examined whether a distinct equity issuer underperformance anomaly exists and found that underperformance is concentrated primarily in small issuing companies with low book-to-market ratios.

TL;DR: In this article, Bikhchandani et al. showed that the buy or sell recommendations of security analysts have a signi"cant positive in#uence on the recommendations of the next two analysts.

TL;DR: In this paper, the authors measure the growth in open market stock repurchases and the manner in which stock repurchase and dividends are used by U.S. corporations, and find that stock buybacks are very procyclical, while dividends increase steadily over time.

TL;DR: In this paper, the authors test whether the profitability of HML, SMB, and WML can be linked to future gross domestic product (GDP) growth, and they find that HML and SMB contain significant information about future GDP growth.

TL;DR: In this paper, a closely held corporation characterized by the absence of a resale market for its shares is analyzed and it is shown that the founder can optimally choose an ownership structure with several large shareholders to force them to form coalitions to obtain control.

TL;DR: In this article, the authors show that in#ows of capital into venture funds increase the valuation of these funds' new investments, which is consistent with competition for a limited number of attractive investments being responsible for rising prices.

TL;DR: In this article, the authors proposed a generic procedure using simultaneously the fundamental price, St, and a set of option contracts, where m⩾1 and σitI is the Black-Scholes implied volatility.

TL;DR: In this paper, the economic foundations for valuing derivative securities are provided, in particular, how the characteristic function (of the future uncertainty) is basis augmenting and spans the payoff universe of most, if not all, derivative assets.

TL;DR: This article examined policies and procedures put in place by corporations to regulate trading in the stock by the firm's own insiders and found that allowed insider trades are modestly more profitable than insider trades made during prohibited blackout periods.

TL;DR: In this article, the authors show that the simple Pecking-order test generates misleading inferences when evaluating plausible patterns of external financing, coupled with the power problem with the Static Trade-off Model documented by Shyam-Sunder and Myers, indicate that their empirical evidence can evaluate neither the Pecking Order nor Static Tradeoff Models.

TL;DR: The authors empirically investigated the influence of German universal banks on the performance of German firms and found that bank control rights from equity ownership significantly improved firm performance beyond what nonbank blockholders can achieve.

TL;DR: In this paper, the authors show that stocks of common stock issuers subsequently underperform nonissuers matched on size and book-to-market ratio, and conclude that the new issue puzzle is explained by a failure of the matched-firm technique to provide a proper control for risk.

TL;DR: This article found that post-shock cash flows of dividend increasing firms exhibit less reversion to pre-shock levels compared with repurchasing firms and that the stock market uses the announcement of the payout method to update its beliefs about the permanence of cash-flow shocks.

TL;DR: In this article, the roles of the number of trades, size of trades and order imbalance (buyer versus seller-initiated trades) in explaining the volatility-volume relation for a sample of NYSE and Nasdaq stocks were examined.

TL;DR: In this article, the authors provided some first, large-sample evidence on the Swedish auction bankruptcy system and showed that the auction bankruptcy is a surprisingly efficient restructuring mechanism for small firms.

TL;DR: In this paper, the authors investigate the portfolio choices of mean-variance-optimizing investors who use sample evidence to update prior beliefs centered on either risk-based or characteristic-based pricing models.

TL;DR: In this paper, the authors examine the costs and determinants of order aggressiveness, and find that aggressive orders have larger price impacts but smaller opportunity costs than passive orders, and that aggressive buys are more likely than sells to be motivated by information.

TL;DR: The Times Mirror Company, a NYSE-listed Fortune 500 firm controlled for 100 years by the Chandler family, hired an industry outsider as CEO in 1995 following an extended period of poor operating and stock price performance under non-family management as discussed by the authors.