The Journal of Finance

The Journal of Finance publishes leading research across all the major fields of finance. It is one of the most widely cited journals in academic finance, and in all of economics. Each of the six issues per year reaches over 8,000 academics, finance professionals, libraries, and government and financial institutions around the world. The journal is the official publication of The American Finance Association, the premier academic organization devoted to the study and promotion of knowledge about financial economics.

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MARKET TESTS OF CAPITAL ADEQUACY OF LARGE COMMERCIAL BANKS

Published: 06/01/1976   |   DOI: 10.1111/j.1540-6261.1976.tb01929.x

Richard H. Pettway


The Pricing of Short‐Term Debt and the Miller Hypothesis: A Note

Published: 06/01/1985   |   DOI: 10.1111/j.1540-6261.1985.tb04976.x

BRADFORD D. JORDAN, RICHARD H. PETTWAY


Some Observations on Risk‐Adjusted Discount Rates: A Comment

Published: 09/01/1979   |   DOI: 10.1111/j.1540-6261.1979.tb03460.x

STEPHEN E. CELEC, RICHARD H. PETTWAY


Establishing On‐Site Bank Examination Priorities: An Early‐Warning System Using Accounting and Market Information

Published: 03/01/1980   |   DOI: 10.1111/j.1540-6261.1980.tb03476.x

RICHARD H. PETTWAY, JOSEPH F. SINKEY


Acquisition of Divested Assets and Shareholders' Wealth

Published: 12/01/1987   |   DOI: 10.1111/j.1540-6261.1987.tb04365.x

NEIL W. SICHERMAN, RICHARD H. PETTWAY

The divesting of corporate assets has become quite popular. Previous studies of divestitures have found conflicting impacts upon shareholders' wealth of the buying firm. This study measures the impacts of product‐line relatedness between the acquiring firm and the divested unit and financial weakness of the selling firm upon the abnormal returns to the acquiring firm. Although the study finds that the impact of financial strength of the seller is ambiguous, the purchase of related assets produces more wealth than does the purchase of unrelated divested units. Further, firms that purchase related divested units have larger proportions of insider ownership.