Corporate managers often view short sellers as market manipulators whose actions drive their company’s stock price below intrinsic …
Number 1, Winter 2021
The Pragmatic Theory of the Firm
Four key ideas provide the foundation for the pragmatic theory of the firm, which is expecially useful for …
Making Economics More Useful: How Technological Eclecticism Could Help
Keynes thought it would be “splendid” if economists became more like dentists. Disciplinary economics has instead become more …
A Practitioners’ Guide to Leverage through Downturns
There is extensive research addressing questions of optimal capital structure. Studies typically focus on estimating the appropriate level …
The Relationship between Shareholder Return and CEO Pay over a...
The author reports the findings of his examination of the relationship between CEO pay and performance, as measured …
Value-Added Per Share (VAPS): A Value-Relevant Corporate Performance Metric
The authors introduce Value Added Per Share (VAPS) as a value-relevant metric that is intended to complement earnings …
Should Shareholders Have a Say on Acquisitions?
Shareholders of U.S. corporations have lost billions of dollars in acquisitions they never approved. In the United Kingdom, …
American Enterprise Institute Roundtable: Was Milton Friedman Right about Shareholder...
In this look back at Milton Friedman’s famous essay in The New York Times 50 years ago organized …
Risk Capital: Theory and Applications
After a brief review of the current theory and practice of risk capital by financial firms, the authors …
Strategic Financial Management: Lessons from Seasoned Equity Offerings
Each of today’s three dominant academic theories of capital structure has trouble explaining the financing behavior of companies …