This is one of several releases that the Securities and Exchange Commission (‘‘Commission’’) will be considering relating to the use of credit ratings in our rules and forms. In this release, we are proposing a new rule as well as rule and form amendments under the Securities Act of 1933 and the Investment Company Act of 1940 to implement provisions of the DoddFrank Wall Street Reform and Consu...

Using comprehensive company-level ownership data from Japan, the authors found that the equity size premium correlates strongly with the investment flows of international institutional investors. When investment flows intensified and shifted into larger stocks in the mid-1990s, the equity size premium was reversed. Their findings suggest that a large fraction of the time variation in the size p...

At a recent conference on real options, a delegate from a telecommunications company raised the following query in response to a speaker from a firm of management consultants. Paraphrasing somewhat, he said: “You’ve stressed the importance of ‘holding the option’ and delaying investment decisions. Last month a consultant from your company advised my firm, a telecoms company, to act decisively, ...

* General Manager, Finance, CSR Limited. 1 For the purposes of this paper, capital management refers to the process of determining the optimal capital structure of a non-financial company. There are, of course, a number of issues that relate to the optimal capital investment strategy that are not addressed here. 2 A leveraged buy-out (LBO) facilitates equity ownership of a company via a highly-...

IT investments are usually risky by nature and account for a considerable part of annual investment budgets. Though value-based IT portfolio management (ITPM) aims at sustained economic growth and long-term value creation regarding IT investments, companies often fail to implement a synchronized ITPM approach that considers all relevant risk-/return components within IT investment valuation. In...

This research was conducted to investigate the factors contributing to thefailure in the forestry and rangeland by-product cooperative companies in Lorestanprovince, Iran. A descriptive-correlative research design was used. The statisticalpopulations were 1100 people divided into two groups of experts from natural resourceagency in Lorestan province and members of cooperative companies. The sam...

I grate thank was p G12 Asset Pricing Each company faces day to day investment opportunities. Just by staying in business the company is taking a decision of reinvesting. These oportunities have to be fairly valued to overcome misallocation of resources. When a company has a contingent cash flow (growth option), and under particular circumstances this stream of cash flow is valued using the dis...