43 Articles found for Industry: Investment Banking

Investors generally subscribe to the conventional wisdom that growth stocks outperform value stocks. But a study of international portfolios by professors at the University of Chicago Graduate School of Business and the Yale School of Management has shown that in reality the reverse is true: Value stocks reap higher returns than growth stocks in markets around the world.

Editor’s Note: this is an old article … [ Read more ]

Content: Article | Author: Eugene F. Fama | Source: Capital Ideas | Subjects: Economics, Finance | Industry: Investment Banking

Although the inner workings of the stock market are fascinating, few introductory texts have the space to describe them in detail. Furthermore, the U.S. stock markets have been changing so rapidly in recent years that many books have not yet caught up with the changes. This quick note provides an up-to-date view of how the U.S. stock markets work today. This note will teach you … [ Read more ]

Content: Article | Source: Nasdaq | Subjects: Economics, Finance | Industry: Investment Banking

When the next round of finance texts is written, the American Dot-com Bubble of the late 1990s is sure to take its place with the classics – the Tulip Bubble, the South Seas Bubble, the run-up to the great crash of 1929. But what caused it? According to one theory, the problem was a shortage of short selling, say Wharton finance professors Christopher C. Geczy … [ Read more ]

Content: Article | Source: Knowledge@Wharton | Subject: Finance | Industry: Investment Banking

How card whiz Blair Hull parlayed a $25,000 casino stake into a trading empire worth more than $500 million.

Editor’s Note: though not offering a lot of real value, this is an interesting look at the relationship between the world of gambling and investment banking.

Content: Article | Author: Michael Kaplan | Source: MBA Jungle | Subjects: Industry Specific, People | Industry: Investment Banking

Now that the window for initial public offerings has all but closed, more Wall Street-bound companies are flirting with controversial reverse mergers.

Content: Article | Author: Thea Singer | Source: Inc. Magazine | Subject: Finance | Industry: Investment Banking

A recent study of US IPOs from 1986 through early 2000, conducted by Cap Gemini Ernst & Young, found that “new economy” firms that promoted the use of non-financial measures did worse when evaluated by those same measures. This compounds their well-documented failure to provide meaningful financial returns and confirms the importance of identifying, measuring, and disclosing appropriate intangible value drivers.

Furthermore, the study found that … [ Read more ]

Content: Article | Author: Jon Low | Source: CGE&Y Center for Business Innovation (CBI) | Subjects: Accounting, Finance | Industry: Investment Banking

Securities markets worldwide have been on a roller-coaster ride after the bursting of the dot-com bubble and Enron’s meltdown. Moreover, technology and globalization are breaking down old market structures and creating new virtual ones. How will investors and regulators deal with these challenges? Wharton’s Financial Institutions Center and the Brookings Institution organized a conference last week in Washington D.C. on “The Future of Securities Markets” … [ Read more ]

Content: Article | Source: Knowledge@Wharton | Subjects: Economics, Finance | Industry: Investment Banking

Armed with his database of U.S. mergers, Harvard Business School professor Mark Mitchell has been exploring models of risk arbitrage that challenge earlier theories. What he’s found: Merger arbitrage is riskier than it looks.

Content: Article | Author: Emily S. Plishner | Source: Harvard Business School (HBS) Working Knowledge | Subject: Finance | Industry: Investment Banking

Three MBAs. Three interviews. The razor-sharp recruiter who scored them. And what you can learn from their mistakes.

Content: Article | Source: MBA Jungle | Subject: Career | Industry: Investment Banking

Companies are being pressured to eliminate classes of stock with supervoting rights.

Content: Article | Author: Andrew Osterland | Source: CFO Publishing | Subjects: Corporate Governance, Finance | Industry: Investment Banking

Wall Street analysts relentlessly cheered the dot-com mania that pushed technology stocks to stunning gains in 1999. But even after those stocks went into a tailspin in 2000, few analysts urged investors to sell. Such behavior has drawn the attention of both the Securities and Exchange Commission and the U.S. Congress, which held hearings on the subject in mid-June.

Content: Article | Source: Knowledge@Wharton | Subjects: Finance, Industry Specific | Industry: Investment Banking

By the time NASDAQ reached its peak in the recent bull market, many financial commentators had begun to accept the idea that stock market valuations were no longer driven solely by the traditional economic factors: earnings growth, inflation, and interest rates. Instead, they suggested, new factors—such as structural changes in the economy, new rules of economics, and the value of intangible assets and brands—justified the … [ Read more ]

Content: Article | Authors: Tim Koller, Zane D. Williams | Source: McKinsey Quarterly | Subjects: Economics, Market/Investment | Industry: Investment Banking

Investment pioneer Bill Hambrecht foresees an entirely new way for companies to go public. His vision amounts to nothing less than an IPO revolution — for founders and investors alike.

See related article, ‘A Better, More Honest IPO’ at:
Content: Article | Author: Udayan Gupta | Source: Inc.com | Subject: Industry Specific | Industry: Investment Banking

With stock prices down, poorly performing companies are more vulnerable to hostile takeovers. So it comes as little surprise that an increasing number are popping poison pills, a familiar takeover defense mechanism. What is surprising are the terms of some of the latest deals.

Content: Article | Author: Kris Frieswick | Source: CFO Publishing | Subject: Finance | Industry: Investment Banking

Article takes a look at the underlying problems with today’s investment banks’ research analysts.

Content: Article | Author: Lisa Meyer | Source: Red Herring | Subject: Industry Specific | Industry: Investment Banking

Stock options are a great idea run amok, as evidenced by the massive option packages awarded to some high-profile CEOs. Options are given tax treatment so companies have an incentive to depend on them for more of their employee compensation. But options are not free to current investors, as they dilute present and current earnings per share. Bill Mann offers a shorthand he learned from … [ Read more ]

Content: Article | Author: Bill Mann | Source: The Motley Fool | Subject: Finance | Industry: Investment Banking

Authors take a look at how money managers get compensated and whether these compensation schemes provide managers with the incentive to act in the investors’ best interests. Their research concludes that certain money managers, due to the generally accepted method of compensation in the mutual fund industry, are likely to increase their portfolio’s risk level in an effort to improve their chances of receiving … [ Read more ]

Content: Article | Authors: Keith C. Brown, Laura T. Starks | Source: strategy+business | Subjects: Finance, Industry Specific | Industry: Investment Banking

From late 1998 through the summer of 2000, Wall Street was an out-of-control beast, and IPOs were its sustenance. The Securities and Exchange Commission is reportedly investigating a host of questionable issues, including whether investment banks unfairly allotted pre-IPO shares in return for a variety of kickbacks. It is the practice of tie-ins, more than anything else, that has attracted most of the … [ Read more ]

Content: Article | Source: Red Herring | Subject: Finance | Industry: Investment Banking

For mutual fund analysts, new insights into evaluating a fund’s performance don’t come along every day. Lately, though, financial experts at Wharton and other schools have collaborated on research that challenges some long-held notions about which funds are best for investors. Included in that research is a paper by Lubos Pastor of the University of Chicago and Wharton’s Robert Stambaugh on how to improve standard … [ Read more ]

Content: Article | Authors: Lubos Pastor, Robert Stambaugh | Source: Knowledge@Wharton | Subject: Finance | Industry: Investment Banking

One of the most popular ways to gauge a company’s health is to mind what corporate insiders are doing. If they’re jumping ship or dumping shares, there’s good reason to worry. But it’s not as easy to track insider bearishness as you might think, thanks to a hedging tactic called the zero-cost collar, a tool that’s saved insiders a boatload of cash while individual investors … [ Read more ]

Content: Article | Author: Eric Moskowitz | Source: Red Herring | Subject: Finance | Industry: Investment Banking