• Do Shareholders of Acquiring Firms Gain from Acquisitions?
    abnormal returns. It tells us how much wealth was created for acquiring firm shareholders for the sample of acquisitions announced from 1980 to 2001. Table 3 provides estimates of the abnormal return and percentage net present value for the whole sample and for each type of acquisition. The table reports...
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  • Mergers and Acquisitions in Ghana
    corporate combination or takeover. This is the basis of the decision to use these terms interchangeably in this work. Firms merge to fulfill certain objectives, the over-riding goal being maximization of shareholderswealth. As with any other business activity, mergers and acquisitions can be...
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  • Market Reaction to Stock Split
    positive information to markets. Hence, stock splits have reduced the wealth of the shareholders. The results also show that presence of a positive effect on volatility and trading volume following the split events, thus suggesting that split events enhance liquidity. CHAPTER-3 RESEARCH METHODOLOGY...
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  • Behavioral Finance
    of securities, both utilitarian and value expressive, that are best for each layer of the portfolio? 2. Capital Asset Pricing Model (CAPM) vs. (BAPM) The CAPM begins with Markowitz’s theory of behavior, in which investors are concerned with the expected returns and the variances of their...
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  • Blank
    then. But every so often a glamorised cure-all/explain-all becomes fashionable. We humble scholars trying to systematically examine and test have, it seems, yet again failed to see the wood for the trees. What do the advocates of shareholder-value maximization offer as the route to improving the...
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  • Strategic Marketing
    , and, on the basis of these short-term earnings, the market values the shares. The market uses the short-term earnings as a signal for total discounted earnings. The signal the market uses depends on what firms in the market typically do. As an example, suppose that every other firm picks Strategy S...
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  • Damodaran
    with a model of expected returns, with firm-specific betas calculated relative to each variable. The equation for expected returns will take the following form: E(R) where βGNP = Beta relative to changes in industrial production E(RGNP) = Expected return on a portfolio with a beta of one on the...
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  • Finance
    the role of the financial manager today is so important. Describe “financial management” in terms of the three major decision areas that confront the financial manager. Identify the goal of the firm and understand why shareholderswealth maximization is preferred over other goals. Understand the...
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  • Corporate Financial Manangement
     Shareholders’ Wealth.    The primary financial objective of a company is to maximize shareholders’ wealth in the long term. This  involves maximizing the value of the company to its owners . Shareholders’ wealth maximization focuses  the profit motive squarely on the owners. It is unambiguous and is...
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  • The Relationship Between Ownership Structure and Corporate Dividend Policy
    managerial ownership, as the additional welfare stemming from the maximization of their own wealth is counterbalanced by the negative effects on the wealth of shareholders, a group to which they also belong (Fama, 1983). 1.5 Limitations of the study. The survey does not include other firms other than...
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  • New Evidence and Perspective of Merger
    market reaction at merger announcement is used as a gauge of value creation or destruction. In a capital market that is efficient with respect to public information, stock prices quickly adjust following a merger announcement, incorporating any expected value changes. Moreover, the entire wealth effect of...
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  • Economics
    maximization as its primary goal. The firm’s ownermanager is assumed to be working to maximize the firm’s short-run profits. Today, the emphasis on profits has been broadened to encompass uncertainty and the time value of money. In this more complete model, the primary goal of the firm is longterm expected...
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  • Finc415 Exam 1
    objectives of the shareholder wealth maximization model. 4. Explain the assumptions and objectives of the stakeholder wealth maximization model. 5. Define the following terms: a. Corporate governance  b. Agency theory  c. Stakeholder capitalism 6. In Germany and Scandinavia, among other...
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  • Just One Word
    where ownership is divorced from control, firms that satisfy consumer demand should generate money profits that create value, increase equity prices and hence shareholder wealth. To achieve this position, corporate management must optimise their internal investment function and their external finance...
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  • In Search for a New Foundation
    is it lost? An answer to this question can explain what factors underlie a firm’s ability to capture growth opportunities or its failure to do so. Understanding these factors will not only affect the way we value firms but will also create a fundamental building block toward a theory of...
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  • Manegerial Economic
    determined by the firm's value (the discounted present value of expected profits). Thus, managers are forced to maximize profits in order to maximize firm value, an important basis for returns on common stocks in the long run. Managers who insist on goals other than maximizing shareholder wealth risk...
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  • M&a Behavioral Aspects
    . Introduction Reviewing the relevant literature and the empirical studies, the outcome of M&A deals may differ from the firms’ aspirations identified by financial theories, which state the goal of shareholderswealth maximization. Then the question occurs, what are the motives of companies to get engaged...
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  • Chapter 1 Notes
    overall valuation. If a decision maintains or increases the firm's overall value, it is acceptable from a financial viewpoint; otherwise, it should be rejected. This principle is demonstrated throughout the text. Maximizing Shareholder Wealth The broad goal of the firm can be brought into focus if...
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  • The Business Case for Corporate Social Responsibility: a Review of Concepts, Research and Practice
    recognizes the clear and direct responsibility–performance relationship. Barnett (2007) argues that the impact of CSR on CSP varies from one firm to the other. He explains that such variation, which is reflected by the inconclusive results from CSP–CFP research, may be attributed to factors specific to each...
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  • Economic
    the context of an economic model, an idealized version of a real-world firm. The basic economic model of a business enterprise is called the theory of the firm. 2.PROFIT MAXIMIZATION AND THE FIRM. Under the simplest version of the theory of the firm it is assumed that profit maximization is its...
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