Handbook of Corporate Finance Empirical Corporate Finance Volume 1

74 K. Li and N.R. Prabhala work does make an important point. Specifically, the statistical significance of discount based on in ...

Ch. 2: Self-Selection Models in Corporate Finance 75 10.4. Discussion A key advantage of the diversification discount literature ...

76 K. Li and N.R. Prabhala than defer R&D expenditures. Other studies examined the issue by comparing observed changes in R& ...

Ch. 2: Self-Selection Models in Corporate Finance 77 the bankruptcy court; and the recovery rates of creditors. These are modele ...

78 K. Li and N.R. Prabhala unobserved attributes that are negatively related to value. These unobserved attributes positively im ...

Ch. 2: Self-Selection Models in Corporate Finance 79 12.2. Matching and long-run performance:Cheng (2003),Li and Zhao (2006) A v ...

80 K. Li and N.R. Prabhala Cheng (2003)andLi and Zhao (2006)emphasize that PS methods are merely sub- stitutes for characteristi ...

Ch. 2: Self-Selection Models in Corporate Finance 81 capital he has available. The characteristic of the market is the year of t ...

82 K. Li and N.R. Prabhala p∗ 1 =X 1 β 1 + 1 , (70) p∗ 2 =X 2 β 2 + 2 , (71) y 1 ∗=W 1 α 1 +v 1 , (72) R∗ 1 =V 1 θ 1 +u 1 , (7 ...

Ch. 2: Self-Selection Models in Corporate Finance 83 Conclusions Our review suggests that self-selection is a growth area in e ...

84 K. Li and N.R. Prabhala Chevalier, J., 2000. Why do firms undertake diversifying mergers? An examination of the investment po ...

Ch. 2: Self-Selection Models in Corporate Finance 85 Koop, G., 2003. Bayesian Econometrics. John Wiley & Sons, New York. Kot ...

86 K. Li and N.R. Prabhala Servaes, H., 1994. Do takeover targets overinvest? Review of Financial Studies 7, 253–277. Servaes, H ...

Chapter 3 AUCTIONS IN CORPORATE FINANCE* SUDIPTO DASGUPTA Department of Finance, Hong Kong University of Science and Technology, ...

88 S. Dasgupta and R.G. Hansen 4.2.1. Returns to bidders and targets 109 4.2.2. The auction process in the market for corporate ...

Ch. 3: Auctions in Corporate Finance 89 Introduction This paper reviews developments in auction theory, with a focus on applic ...

90 S. Dasgupta and R.G. Hansen A careful review of the literature shows that auction theory has had a significant but not overwh ...

Ch. 3: Auctions in Corporate Finance 91 values to be independent draws from a distributionF(v). We have therefore introduced a d ...

92 S. Dasgupta and R.G. Hansen so that bidderj’s bid isb(vj).Ifb(v)represents a (symmetric) bidding equilibrium, then bidderi’s ...

Ch. 3: Auctions in Corporate Finance 93 If beliefs on values are governed by the uniform distribution, thenG(v)=vN−^1 , g(v)=(N− ...