Cash-flow Notation: We use (c0, c1, . . . , ci, . . . , cn) to denote the series of cash-flows where ci is received at time t = i . The length of a period, i.e. the interval of time between t = i and t = i + 1, will usually be understood from the context. Negative cash-flows refer to cash payments. The initial cash-flow, c0, will often be negative while the remaining cash-flows are positive. Th...

When a cash merger is announced but not yet completed, there are two key unobserved variables involved in the target company stock price: the probability of success, and the fallback price, i.e., the price conditional on merger failure. We propose an arbitrage-free model involving these two sources of uncertainty which prices European options on the target company. We empirically test our formu...

This paper examines the determinants of the choice of financial advisors and their impact on the announcement effects of US acquirers in cross-border M&As. Two hypotheses are tested: one pertains to the acquiring firms’ home preference in selecting financial advisors, and the other relates to advisors’ experience in target countries. Evidence supports the home preference hypothesis in the selec...

In this paper, we build on a single product, finite horizon, periodic review inventory management setting and include key financial aspects such as working capital constraints, payment delays and multiple sources of financing. We numerically solve for the optimal working capital target and the order-up-to level using an embedded Nelder and Mead optimization, and we perform sensitivity analysis ...

Analyses of the receiver operating characteristic (ROC) almost invariably suggest that, on a recognition memory test, the standard deviation of memory strengths associated with the lures (sigma(lure)) is smaller than that of the targets (sigma(target)). Often, sigma(lure)/ sigma(target) approximately = 0.80. However, that conclusion is based on a model that assumes that the memory strength dist...

Article history: Received 29 January 2013 Received in revised form 5 November 2013 Accepted 3 January 2014 Available online 15 January 2014 A two-stage stock-financed merger occurs when an acquiring firm first issues shares, and then engages in a cash acquisition shortly afterward. Such deals allow us to test two important hypotheses derived from decoupling: by clienteles via segmentation and b...

Orientation: The 2007–2008 global financial crisis (GFC) represented a negative economic shock that financially constrained most firms globally.Research purpose: This study investigated the impact of GFC on firms’ speed adjustment (SOA) towards target leverage and whether this is good descriptor corporate financing for Johannesburg Stock Exchange (JSE)-listed nonfinancial firms.Motivation study...

climate is one of the most important factors that influence the quality and quantity of crops. understanding the natural features of any region, especially about the climate, can play a major role in making plans and land use planning. sugar beet, is one of the major industrial plants, that in addition to producing one of the most fundamental basic needs of society, namely sugar, it can have ot...