Managerial discretion and contingent valuation of corporate securities

Journal of Derivatives

Volumn 6, Issue 4, 1999, Pages 1-12

  Garbade, Kenneth D ^a  

^a NEW YORK UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84992900272     PISSN: 10741240     EISSN: None     Source Type: Journal    
DOI: 10.3905/jod.1999.319130     Document Type: Article

References (66)

1. Aharony, J., and I. Swary. "Quarterly Dividend and Earnings Announcements and Stockholders' Returns: An Empirical Analysis." Journal of Finance, 35, 1 (1980).
2. Amihud, Y., K. Garbade, and M. Kahan. "A New Governance Structure for Corporate Bonds." Stanford Law Review, 51, 447 (1999).
3. Anderson, R., and S. Sundaresan. "Design and Valuation of Debt Contracts." Review of Financial Studies, 9, 37 (1996).
4. Asquith, P. "Convertible Bonds are Not Called Late." Journal of Finance, 50, 1275 (1995).
5. Asquith, P., and D. Mullins. "Convertible Debt: Corporate Call Policy and Voluntary Conversion." Journal of Finance, 46, 1273 (1991).
6. Asquith, P.. "The Impact of Initiating Dividend Payments on Shareholders' Wealth." Journal of Business, 56, 77 (1983).
7. Asquith, P.. "Signaling with Dividends, Stock Repurchases, and Equity Issues." Financial Management, 15, 27 (1986).
8. Asquith, P., and T. Wizman. "Event Risk, Covenants, and Bondholder Returns in Leveraged Buyouts." Journal of Financial Economics, 27, 195 (1990).
9. Bhattacharya, S. "Imperfect Information, Dividend Policy, and 'the Bird in the Hand' Fallacy." Bell Journal of Economics, 10, 259 (1979).
10. Black, F. "The Dividend Puzzle." Journal of Portfolio Management, 2, 5 (1976).
11. Black, F., and J. Cox. "Valuing Corporate Securities: Some Effects of Bond Indenture Provisions." Journal of Finance, 31, 351 (1976).
12. Black, F., and M. Scholes. "The Pricing of Options and Corporate Liabilities." Journal of Political Economy, 81, 637 (1973).
13. Brennan, M., and E. Schwartz. "Analyzing Convertible Bonds." Journal of Financial and Quantitative Analysis, 15, 907 (1980).
14. Brennan, M., and E. Schwartz. "Convertible Bonds: Valuation and Optimal Strategies for Call and Conversion." Journal of Finance, 32, 1699 (1977).
15. Brickley, J. "Shareholder Wealth, Information Signaling and the Specially Designated Dividend." Journal of Financial Economics, 12, 187 (1983).
16. Comment, R., and G. Jarrell. "The Relative Signalling Power of Dutch-Auction and Fixed Price Self-Tender Offers and Open-Market Share Repurchases." Journal of Finance, 46, 1243 (1991).
17. Commentaries on Indentures. Chicago: American Bar Foundation, 1971.
18. Cox, J., and M. Rubinstein. Options Markets. Englewood Cliffs, NJ: Prentice-Hall, 1985.
19. Dann, L. "Common Stock Repurchases." Journal of Financial Economics, 9, 113 (1981).
20. DeAngelo, H., and L. DeAngelo. "Dividend Policy and Financial Distress: An Empirical Investigation of Troubled NYSE Firms." Journal of Finance, 45, 1415 (1990).
21. De Angelo, H., L. DeAngelo, and D. Skinner. "Dividends and Losses." Journal of Finance, 47, 1837 (1992).
22. Fama, E., and H. Babiak. "Dividend Policy: An Empirical Analysis." Journal of the American Statistical Association, 63, 1132 (1968).
23. Galai, D., and M. Schneller. "Pricing of Warrants and the Value of the Firm." Journal of Finance, 33, 1333 (1978).
24. Geske, R. "The Valuation of Corporate Liabilities as Compound Options." Journal of Financial and Quantitative Analysis, 12, 541 (1977).
25. Healy, P., and K. Palepu. "Earnings Information Conveyed by Dividend Initiations and Omissions." Journal of Financial Economics, 21, 149 (1988).
26. Ho, T., and R. Singer. "Bond Indenture Provisions and the Risk of Corporate Debt." Journal of Financial Economics, 10, 375 (1982).
27. Ho, T., and R. Singer. "The Value of Corporate Debt with a Sinking-Fund Provision." Journal of Business, 57, 315 (1984).
28. Hyer, T., A. Lipton-Lifschitz, and D. Pugachevsky. "Passport to Success." Risk, 10, 127 (1997).
29. Ikenberry, D., J. Lakonishok, and T. Vermaelen. "Market Underreaction to Open Market Share Repurchases." Journal of Financial Economics, 39, 181 (1995).
30. Ingersoll, J. "A Contingent-Claims Valuation of Convertible Securities." Journal of Financial Economics, 4, 289 (1977a).
31. Ingersoll, J. "An Examination of Corporate Call Policies on Convertible Securities." Journal of Finance, 32, 463 (1977b).
32. Ingersoll, J. "A Theoretical and Empirical Investigation of the Dual Purpose Funds: An Application of Contingent-Claims Analysis." Journal of Financial Economics, 3, 83 (1976).
33. Jaffee, D., and A. Shleifer. "Costs of Financial Distress, Delayed Calls of Convertible Bonds, and the Role of Investment Banks." Journal of Business, 63, S107 (1990).
34. Jayaraman, N., and K. Shastri. "The Valuation Impacts of Specially Designated Dividends." Journal of Financial and Quantitative Analysis, 23, 301 (1988).
35. Jensen, M. "Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers." American Economic Review, 76, 323 (1986).
36. Jensen, M., and W. Meckling. "Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure." Journal of Financial Economics, 3, 305 (1976).
37. John, K., and J. Williams. "Dividends, Dilution and Taxes: A Signaling Equilibrium." Journal of Finance, 40, 1053 (1985).
38. Jones, E., S. Mason, and E. Rosenfeld. "Contingent Claims Analysis of Corporate Capital Structures: An Empirical Investigation." Journal of Finance, 39, 611 (1984).
39. Jones, E. "Contingent Claims Valuation of Corporate Liabilities: Theory and Empirical Tests." In B. Friedman, ed., Corporate Capital Structures in the United States. Chicago: University of Chicago Press, 1985.
40. Kahan, M. "Anti-Dilution Provisions in Convertible Securities." Stanford Journal of Law, Business & Finance, 2, 147 (1995).
41. Kahan, M., and B. Tuckman. "Do Bondholders Lose from Junk Bond Covenant Changes?" Journal of Business, 66, 499 (1993).
42. Kalay, A. "Signaling, Information Content, and the Reluctance to Cut Dividends." Journal of Financial and Quantitative Analysis, 15, 855 (1980).
43. Kalay, A. "Stockholder-Bondholder Conflict and Dividend Constraints." Journal of Financial Economics, 10, 211 (1982).
44. Kao, C., and C. Wu. "Tests of Dividend Signaling Using the Marsh-Merton Model: A Generalized Friction Approach." Journal of Business, 67, 45 (1994).
45. Leibowitz, M., and A. Kalotay. "Valuation of Corporate Securities: Applications of Contingent Claims Analysis." In E. Altman and M. Subrahmanyam, eds., Recent Advances in Corporate Finance. Homewood, IL: Richard D. Irwin, 1985.
46. Leland, H. "Agency Costs, Risk Management, and Capital Structure." Journal of Finance, 53, 1213 (1998).
47. Lintner, J. "Distribution of Incomes of Corporations Among Dividends, Retained Earnings, and Taxes." American Economic Review, 46, 97 (1956).
48. Marsh, T., and R. Merton. "Dividend Behavior for the Aggregate Stock Market." Journal of Business, 60, 1 (1987).
49. Mason, S., and R. Merton. "The Role of Contingent Claims Analysis in Corporate Finance." In E. Altman and M. Subrahmanyam, eds., Recent Advances in Corporate Finance. Homewood, IL: Richard D. Irwin, 1985.
50. Masulis, R. "The Effects of Capital Structure Change on Security Prices." Journal of Financial Economics, 8, 139 (1980a).
51. Masulis, R. "Stock Repurchase by Tender Offer: An Analysis of the Causes of Common Stock Price Changes." Journal of Finance, 35, 305 (1980b).
52. McConnell, J., and E. Schwartz. "LYON Taming." Journal of Finance, 41, 561 (1986).
53. Mella-Barral, P., and W. Perraudin. "Strategic Debt Service." Journal of Finance, 52, 531 (1997).
54. Merton, R. "On the Pricing of Corporate Debt: The Risk Structure of Interest Rates." Journal of Finance, 29, 449 (1974).
55. Merton, R. "Theory of Rational Option Pricing." Bell Journal of Economics and Management Science, 4, 141 (1973).
56. Miller, M., and K. Rock. "Dividend Policy Under Asymmetric Information." Journal of Finance, 40, 1031 (1985).
57. Ogden, J. "Determinants of the Ratings and Yields on Corporate Bonds: Tests of the Contingent Claims Model." Journal of Financial Research, 10, 329 (1987).
58. Park, S., and M. Subrahmanyam. "Option Features of Corporate Securities." In S. Figlewski, W. Silber, and M. Subrahmanyam, eds., Financial Options, From Theory to Practice. Chicago: Business One Irwin, 1990.
59. Parrino, R. "Spin-Offs and Wealth Transfers: The Marriott Case." Journal of Financial Economics, 43, 241 (1997).
60. Paul-Choudhury, S. "Funds of Knowledge." Risk, 10, 125 (1997).
61. Pettit, R. "Dividend Announcements, Security Performance, and Capital Market Efficiency." Journal of Finance, 27, 933 (1972).
62. Smith, C., and J. Warner. "On Financial Contracting." Journal of Financial Economics, 7, 117 (1979).
63. Stephens, C., and M. Weisbach. "Actual Share Reacquisitions in Open-Market Repurchase Programs." Journal of Finance, 53, 313 (1998).
64. Vermaelen, T. "Common Stock Repurchases and Market Signaling." Journal of Financial Economics, 9, 139 (1981).
65. Vu, J. "An Empirical Investigation of Calls of Non-Convertible Bonds." Journal of Financial Economics, 16, 235 (1986).
66. Watts, R. "The Information Content of Dividends." Journal of Business, 46, 191 (1973).