This study shows the payment of cash dividends is not necessary for successful corporatefinancial management in mature firms. A mature company in a mature industry, theCrown Cork and Seal Company did not pay any common dividends over a 33-yearperiod. Instead, the firm used stock repurchases flexibly to manage the challenges ofdeclining industry growth potential. Crown’s share re...

We derive an empirical test for third-order stochastic dominance that allows for diversification between choice alternatives.The test can be computed using straightforward linear programming. Bootstrapping techniques and asymptotic distribution theory can approximate the sampling properties of the test results and allow for statistical inference. Our approach is illustrated using real-life US s...

Consolidation, Combination and Diversification (CCD’s) in the emerging globalized market leads to competition and escalating the monopoly power. Given the increasing liberalization of rules, regulations and law, a number of firms are going beyond national borders and making deals triumphant. We suggest an innovative firm valuation model for M&A in the area of Corporate Finance that is NRR Appro...

BACKGROUND Though the cigarette companies have long publicly denied paying for product placement in films, the documentary evidence from the 1950s-1980s overwhelmingly suggests otherwise. METHODS Approximately 800,000 pages of previously secret internal corporate British American Tobacco Company documents were reviewed at the Minnesota Tobacco Document Depository from March 2003 through May 2...

With the reform of our property rights system, the maturity of the capital market, and the diversification of corporate financing, the capital structure decision has become the major concern of financial management. There are numbers of researches on how to determine the optimal capital structure, what factors affect the capital structure and what the relationship is like between the capital st...

This article provides a literature review about the impact of the intangible assets on the design of corporate financial and governance policies. Intangible assets show a set of characteristicsnamely, high levels of risk and uncertainty, firm-specificity, human capital intensity, low observability and long-term naturethat make them markedly distinct from other categories of assets. These charac...

Multiculturalism and Performance 2 The following research investigates the question, if multiculturalism and diversity benefits often presumed to increase organizational creativity, critical thinking, and problem-solving capabilities can be unanimously substantiated and quantified within the context of typical business-oriented organizational performance indicators, such as sales-to-goal achiev...

The issue of financial integration, at the country level, is a well-documented phenomenon in the area of International Portfolio Diversification (IPD). Despite the increasing degree of financial integration, it is important to investigate the global integration at industry level to capture the potential benefits of IPD. Thus, this study attempts to evaluate the potential advantages of IPD for i...

The survivor principle holds that the competitive process weeds out inefficient firms, so that hypotheses about efficient behavior can be tested by observing how firms actually behave. This principle underlies a large body of empirical work in strategy, economics, and management. But do competitive markets actually display what is efficient? Is the survivor principle reliable? We evaluate the s...

The benefits of internal labor markets are largest when they include industries that utilize similar worker skills, facilitating cross-industry worker reallocation and collaboration. We construct a matrix of industry pair-wise human capital transferability using information obtained from more than 11 million job changes. We show that diversifying acquisitions occur more frequently among industr...