This project examines divestiture announcements in Australia from 1987 to 1997. Valuation effects in response to such announcements are consistently, however weakly, positive for both the divesting parents and the acquiring firms. Different causes and motives to divest are investigated…. Chapter 1:
According to classical finance theory, a risk neutral firm has no incentives to hedge. We will investigate why firms hedge by starting from the assumptions underlying the Modigliani-Miller propositions. One at a time, we will relax the assumptions and investigate the effect
Does risk aversion lead to softer or fiercer competition? To give a complete answer, I provide a framework that can accommodate a wide range of alternative assumptions regarding the nature of competition and types of uncertainty. I show how more risk aversion
Substantial parts of the literature concerning capital structure have dealt with issues regarding the leverage ratios. These leverage ratios have been analyzed in all kinds of ways, where most studies have explained observed patterns. Our research will also deal with leverage ratios