The Journal of Finance

Convertible Bond Design and Capital Investment: The Role of Call Provisions

Published: 2/2004,  Volume: 59,  Issue: 1  |  DOI: 10.1111/j.1540-6261.2004.00636.x  |  Cited by: 61

Timo P. Korkeamaki, William T. Moore

If firms issue convertible securities to facilitate sequential investment, the securities should be engineered to give sufficient flexibility to accommodate timing of follow‐on investment. We examine call provisions in convertible bonds and argue that firms with investment options expected to expire sooner (later) will offer weaker (stronger) call protection. We find that issues with weak or no call protection are offered by firms that invest greater amounts soon after issuance than those issuing convertibles with strong protection. Moreover, capital expenditure levels during the 5‐year period following issuance are inversely related to the length of call‐protection periods.

A Re‐Examination of Shareholder Wealth Effects of Calls of Convertible Preferred Stock

Published: 12/1989,  Volume: 44,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1989.tb02661.x  |  Cited by: 15

ERIC L. MAIS, WILLIAM T. MOORE, RONALD C. ROGERS

Common stock price reactions to announcements of 67 calls of in‐the‐money convertible preferred stocks are examined, and a significant average abnormal return of −1.6 percent is documented. The finding is robust to the choice of estimation period and the assumed return‐generating process. Annual dividend obligations for the called preferred issues in the sample typically are greater than the dividends for the common shares into which they are converted, and announcement‐period abnormal returns are negatively correlated with changes in dividends. Moreover, calls that result in dilution of voting rights appear to have greater adverse valuation effects than calls that do not alter voting rights concentration.

Security Pricing and Deviations from the Absolute Priority Rule in Bankruptcy Proceedings

Published: 12/1990,  Volume: 45,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1990.tb03723.x  |  Cited by: 155

ALLAN C. EBERHART, WILLIAM T. MOORE, RODNEY L. ROENFELDT

Claims ultimately awarded to shareholders of firms in reorganization were examined for a sample of 30 filings under the 1978 Bankruptcy Reform Act. We measured the amount paid to shareholders in excess of that which they would have received under the absolute priority rule and found that this amount represents, on average, 7.6% of the total awarded to all claimants. Evidence is also reported that common share values reflect a significant proportion of value ultimately received in violation of absolute priority, suggesting that deviations from the rule were expected by the equity markets.

OUTLOOK FOR MORTGAGE MARKETS*

Published: 5/1960,  Volume: 15,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1960.tb00170.x  |  Cited by: 0

Robert Moore Fisher

THE QUALITY OF CREDIT IN BOOMS AND DEPRESSIONS*

Published: 5/1956,  Volume: 11,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1956.tb00709.x  |  Cited by: 1

Geoffrey H. Moore

DISCUSSION

Published: 5/1969,  Volume: 24,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1969.tb01678.x  |  Cited by: 0

Basil J. Moore

PUBLIC COSTS OF URBAN RENEWAL

Published: 5/1962,  Volume: 17,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1962.tb04290.x  |  Cited by: 1

Robert Moore Fisher

Derivative Pricing 60 Years before Black–Scholes: Evidence from the Johannesburg Stock Exchange

Published: 12/2006,  Volume: 61,  Issue: 6  |  DOI: 10.1111/j.1540-6261.2006.01012.x  |  Cited by: 30

LYNDON MOORE, STEVE JUH

We obtain daily data for warrants traded on the Johannesburg Stock Exchange between 1909 and 1922, and for a broker's call option quotes on stocks from 1908 to 1911. We use this new data set to test how close derivative prices are to Black–Scholes (1973) prices and to compute profits for investors using a simple trading rule for call options. We examine whether investors exercised warrants optimally and how they reacted to extensions of the warrants' durations. We show that long before the development of the formal theory, investors had an intuitive grasp of the determinants of derivative pricing.

A Comment on Excess Asset Reversions and Shareholder Wealth

Published: 12/1990,  Volume: 45,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1990.tb03739.x  |  Cited by: 5

NORMAN H. MOORE, STEPHEN W. PRUITT

This study re‐examines the earlier finding of Alderson and Chen (1986a) that financial markets do not consider excess pension assets in determining share prices and that significant increases in shareholder wealth occur when an overfunded pension plan is terminated. The results document that specific event‐time contamination (corporate restructuring announcements) provides the driving force for all the earlier findings.

INTEREST RATES, PORTFOLIO BEHAVIOR, AND MARKETABLE GOVERNMENT SECURITIES

Published: 3/1972,  Volume: 27,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1972.tb00616.x  |  Cited by: 4

William T. Terrell, William J. Frazer

Interest Rates, Uncertainty and the Livingston Data

Published: 6/1981,  Volume: 36,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1981.tb00651.x  |  Cited by: 30

WILLIAM A. BOMBERGER, WILLIAM J. FRAZER

The observed relationship between the standard deviation of forecasts and past forecast errors as found in the Livingston survey suggests the interpretation of the standard deviation as a measure of inflation uncertainty. The mean and the standard deviation for the inflation rate forecast found in the Livingston survey, furthermore, are used as regressors in a reduced‐form interest rate equation. The results indicate a large negative effect of such uncertainty on interest rates. The inclusion of the uncertainty measure and commonly omitted lagged values of all variables in our analysis of data leads to more theoretically plausible estimated effects of money growth and expected inflation on interest rates than do standard estimates.

COMMERCIAL BANK REGULATION, STRUCTURE, AND PERFORMANCE*

Published: 6/1975,  Volume: 30,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1975.tb01872.x  |  Cited by: 0

William Jackson

COUNTERSPECULATION, AUCTIONS, AND COMPETITIVE SEALED TENDERS

Published: 3/1961,  Volume: 16,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1961.tb02789.x  |  Cited by: 4994

William Vickrey

THE STATUS AND PROSPECTS OF VARIABLE ANNUITIES*

Published: 5/1962,  Volume: 17,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1962.tb04268.x  |  Cited by: 0

William Freund

THE VALUE OF AN OPTION TO EXCHANGE ONE ASSET FOR ANOTHER

Published: 3/1978,  Volume: 33,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1978.tb03397.x  |  Cited by: 1157

William Margrabe

COMMERCIAL BANK RESERVE MANAGEMENT IN A STOCHASTIC MODEL: IMPLICATIONS FOR MONETARY POLICY

Published: 12/1968,  Volume: 23,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1968.tb00316.x  |  Cited by: 178

William Poole

THE RELATIONSHIP OF MONETARY DECELERATIONS TO BUSINESS CYCLE PEAKS: ANOTHER LOOK AT THE EVIDENCE

Published: 6/1975,  Volume: 30,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1975.tb01844.x  |  Cited by: 1

William Poole

Burnsian Monetary Policy: Eight Years of Progress?

Published: 5/1979,  Volume: 34,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1979.tb02111.x  |  Cited by: 6

WILLIAM POOLE

Safety Transformation and the Structure of the Financial System

Published: 8/10/2020,  Volume: 75,  Issue: 6  |  DOI: 10.1111/jofi.12967  |  Cited by: 47

WILLIAM DIAMOND

This paper studies how a financial system that is organized to efficiently create safe assets responds to macroeconomic shocks. Financial intermediaries face a cost of bearing risk, so they choose the least risky portfolio that backs their issuance of riskless deposits: a diversified pool of nonfinancial firms' debt. Nonfinancial firms choose their capital structure to exploit the resulting segmentation between debt and equity markets. Increased safe asset demand yields larger and riskier intermediaries and more levered firms. Quantitative easing reduces the size and riskiness of intermediaries and can decrease firm leverage, despite reducing borrowing costs at the zero lower bound.

THE THEORETICAL VALUE OF A STOCK RIGHT: A COMMENT

Published: 9/1956,  Volume: 11,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1956.tb00112.x  |  Cited by: 0

William Beranek

DISCUSSION

Published: 5/1980,  Volume: 35,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1980.tb02168.x  |  Cited by: 0

William Marshall

MONETARY AND DEBT‐MANAGEMENT POLICIES, 1953–55*

Published: 3/1959,  Volume: 14,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1959.tb00499.x  |  Cited by: 0

William Pigott

Tests of Two Models for Valuing Call Options on Stocks with Dividends

Published: 12/1982,  Volume: 37,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1982.tb03614.x  |  Cited by: 18

WILLIAM STERK

Roll has recently formulated an option pricing model which allows dividend payments on the underlying stock. This paper compares the performance of the exact Roll model with a modified, but inexact, Black‐Scholes model. The results indicate that the Roll model prices are significantly closer to actual market prices.

PATTERNS OF HOUSING EXPERIENCE DURING PERIODS OF CREDIT RESTRAINT IN INDUSTRIALIZED COUNTRIES

Published: 5/1972,  Volume: 27,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1972.tb00954.x  |  Cited by: 0

George Sternlieb, Robert Moore Fisher, Charles J. Siegman

Shelf Registrations and Shareholder Wealth: A Comparison of Shelf and Traditional Equity Offerings

Published: 6/1986,  Volume: 41,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1986.tb05048.x  |  Cited by: 15

NORMAN H. MOORE, DAVID R. PETERSON, PAMELA P. PETERSON

This study examines the effect of issuing common stock on shareholder wealth under two alternative methods of registration, shelf registration under the Securities and Exchange Commission's Rule 415 and the traditional method of registering shares for immediate sale. The stock price reactions accompanying security registrations and offerings over the period from March 1982 through November 1983 are examined for over two hundred issues. A negative price reaction is observed for traditional and shelf registrations for both utility and non‐utility issuers. No statistically significant difference is observed between shelf and traditional registrations. Further negative price reactions precede the offerings of these securities.

AN APPRAISAL OF THE OHIO AXLE‐MILE TRUCK TAX*

Published: 3/1958,  Volume: 13,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1958.tb04183.x  |  Cited by: 0

William Joseph Weiskopf

A GENERAL CLASS OF THREE‐PARAMETER RISK MEASURES: COMMENT

Published: 3/1975,  Volume: 30,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1975.tb03176.x  |  Cited by: 1

William H. Jean

Books Recieved

Published: 9/1958,  Volume: 13,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1958.tb04214.x  |  Cited by: 1

Clyde William Phelps

MONETARY POLICY EFFECTIVENESS: THE CASE OF A POSITIVELY SLOPED I S CURVE

Published: 12/1971,  Volume: 26,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1971.tb01749.x  |  Cited by: 7

William L. Silber

BOOKS RECEIVED

Published: 12/1960,  Volume: 15,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1960.tb02785.x  |  Cited by: 0

Clyde William Phelps

BOOKS RECEIVED

Published: 9/1959,  Volume: 14,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1959.tb00136.x  |  Cited by: 0

Clyde William Phelps

LARGE MANUFACTURING CORPORATIONS AS SUPPLIERS OF FUNDS TO THE UNITED STATES GOVERNMENT SECURITIES MARKET

Published: 12/1958,  Volume: 13,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1958.tb04218.x  |  Cited by: 6

William J. Frazer

GROUP ACCUMULATION THROUGH EQUITIES FOR PENSIONS

Published: 5/1962,  Volume: 17,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1962.tb04269.x  |  Cited by: 0

William M. Anderson

REPLY

Published: 6/1973,  Volume: 28,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1973.tb01396.x  |  Cited by: 1

William E. Gibson

A THEORETICAL AND EMPIRICAL INVESTIGATION OF DEBT MATURITY TIMING AND YIELD CURVE SLOPE ANALYSIS*

Published: 6/1973,  Volume: 28,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1973.tb01401.x  |  Cited by: 0

William C. Handorf

SUBOPTIMIZATION IN MEAN‐VARIANCE EFFICIENT SET ANALYSIS

Published: 5/1973,  Volume: 28,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1973.tb01783.x  |  Cited by: 0

William A. Remaley

BOOKS RECEIVED

Published: 12/1955,  Volume: 10,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1955.tb01309.x  |  Cited by: 1

Clyde William Phelps

BOOKS RECEIVED

Published: 3/1956,  Volume: 11,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1956.tb00695.x  |  Cited by: 1

Clyde William Phelps

JUNIOR MORTGAGES IN REAL ESTATE FINANCE A CASE STUDY

Published: 3/1956,  Volume: 11,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1956.tb00685.x  |  Cited by: 2

William N. Kinnard

LIFE REINSURANCE POOLS

Published: 3/1956,  Volume: 11,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1956.tb00686.x  |  Cited by: 1

William M. Howard

The Issue Decision of Manager‐Owners under Information Asymmetry

Published: 12/1987,  Volume: 42,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1987.tb04364.x  |  Cited by: 10

WILLIAM D. BRADFORD

A firm must issue common stock in order to undertake a new investment, and the firm's manager‐owners can value the firm more accurately than the market. The ability of the manager‐owners to trade in the firm's shares during the issue (a) reduces the investments that are foregone because of the market's mispricing the firm's shares, (b) changes the size and direction of the stock price change when the firm announces a new stock issue, and (c) changes the market value of the firm before and after the issue announcement, whether or not it decides to issue.

BOOKS RECEIVED

Published: 9/1955,  Volume: 10,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1955.tb01294.x  |  Cited by: 0

Clyde William Phelps

PRICE‐EXPECTATIONS EFFECTS ON INTEREST RATES

Published: 3/1970,  Volume: 25,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1970.tb00410.x  |  Cited by: 42

William E. Gibson

MONETARY CHANNELS AND THE RELATIVE IMPORTANCE OF MONEY SUPPLY AND BANK PORTFOLIOS

Published: 3/1969,  Volume: 24,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1969.tb00344.x  |  Cited by: 2

William L. Silber

REVIEW OF INSTITUTIONAL ACTIVITY IN THE EQUITY MARKET, 1951–54

Published: 12/1957,  Volume: 12,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1957.tb04160.x  |  Cited by: 1

William B. Neenan

MONETARY CONTROL AND THE DISTRIBUTION OF MONEY*

Published: 9/1964,  Volume: 19,  Issue: 3  |  DOI: 10.1111/j.1540-6261.1964.tb02876.x  |  Cited by: 0

William G. Dewald

BOOKS RECEIVED

Published: 3/1955,  Volume: 10,  Issue: 1  |  DOI: 10.1111/j.1540-6261.1955.tb01573.x  |  Cited by: 0

Clyde William Phelps

CRITICAL EVALUATION OF PENSION PLANS

Published: 5/1968,  Volume: 23,  Issue: 2  |  DOI: 10.1111/j.1540-6261.1968.tb00809.x  |  Cited by: 0

William T. Gibb

A MICRO‐ECONOMETRIC INVESTIGATION OF MULTI‐OBJECTIVE FIRMS

Published: 9/1977,  Volume: 32,  Issue: 4  |  DOI: 10.1111/j.1540-6261.1977.tb03322.x  |  Cited by: 4

William L. Beedles

REPLY

Published: 12/1973,  Volume: 28,  Issue: 5  |  DOI: 10.1111/j.1540-6261.1973.tb01467.x  |  Cited by: 0

William L. Silber