- Department of Finance
College of Business
Auburn University, AL 36849 - 334-844-5344
John S. Jahera, Jr.
Auburn University, Department of Finance, Faculty Member
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The Sarbanes-Oxley Act represented a major legislative action designed to increase transparency and accountability in U.S. corporations. Within the context of agency theory and corporate governance, the expectation is that the enactment... more
The Sarbanes-Oxley Act represented a major legislative action designed to increase transparency and accountability in U.S. corporations. Within the context of agency theory and corporate governance, the expectation is that the enactment of Sarbanes-Oxley impacted the agency relationship of firms and hence affected the corporate governance structure. With these changes, the question arises as to the capital structure decisions of corporations which have previously been shown to be related to agency measures and corporate governance. It is the objective of this research to examine the capital structure of U.S. firms as they relate to corporate governance measures and to determine the effect, if any, of Sarbanes-Oxley.
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... size, and by control-ling for both firm size (Banz, 1981; Reinganum, 1981) and ownership structure differences (Oswald and J ... categories Return on invested capital - Michel & Shaked 51 Rumelt's categories Sharpe measure,... more
... size, and by control-ling for both firm size (Banz, 1981; Reinganum, 1981) and ownership structure differences (Oswald and J ... categories Return on invested capital - Michel & Shaked 51 Rumelt's categories Sharpe measure, Treynor measure, + (1984) Jensen measure Bettis & ...
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The purpose of this paper is to develop a theoretical model based on option pricing theory to value managerial flexibility arising in stock for stock exchanges. The paper shows how a mergers and acquisition (M&A) deal may be optimally... more
The purpose of this paper is to develop a theoretical model based on option pricing theory to value managerial flexibility arising in stock for stock exchanges. The paper shows how a mergers and acquisition (M&A) deal may be optimally structured as a real options swap by ...
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1. Introduction The rise in hostile takeover attempts in recent years has apparently motivated many states to pass antitakeover legislation, often after lobbying by the man-agement of targeted firms. At least 39 states have passed some... more
1. Introduction The rise in hostile takeover attempts in recent years has apparently motivated many states to pass antitakeover legislation, often after lobbying by the man-agement of targeted firms. At least 39 states have passed some sort of anti-takeover legislation. In 1988, ...
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The purpose of this paper is to identify important determinants of the performance of commercial banks. Two profitability measures and one measure of loss are used as indicators of performance. Each of these measures is related to... more
The purpose of this paper is to identify important determinants of the performance of commercial banks. Two profitability measures and one measure of loss are used as indicators of performance. Each of these measures is related to different types of bank assets and other variables. The choice of these measures and variables is justified by citing several previous studies in the area. Various arguments are also presented to show that these relationships are not linear, have unknown functional forms, and are not stable. To avoid the risk of misspecifying the functional form of the relationships, a wide class of functional forms is employed that may embody the true functional form as a special case even when the specific functional forms considered in previous studies are false. The empirical results obtained from the class approach are compared with those obtained by assuming linear and specific nonlinear relations to study the robustness of the results to departures from specific fun...
ABSTRACT What happened to the global initial public offering (IPO) market after the Sarbanes-Oxley Act was passed in 2002? Press reports suggest that Sarbanes-Oxley made U.S. markets less competitive compared to the rest of the... more
ABSTRACT What happened to the global initial public offering (IPO) market after the Sarbanes-Oxley Act was passed in 2002? Press reports suggest that Sarbanes-Oxley made U.S. markets less competitive compared to the rest of the world-causing a drop in IPOs. The authors argue that past heavy U.S. IPO activity created thousands of jobs-and those days are gone. But who is to blame? Is increased regulation the cause? © 2012 Wiley Periodicals, Inc.
ABSTRACT This article examines the issues pertaining to ownership and control of U.S. firms at their initial public offering (IPO). Several recent Wall Street Journal articles have discussed the potential advantages and disadvantages of... more
ABSTRACT This article examines the issues pertaining to ownership and control of U.S. firms at their initial public offering (IPO). Several recent Wall Street Journal articles have discussed the potential advantages and disadvantages of company founders using dual-class shares at the IPO to maintain control of the firms they have created. If dual-class shares are not offered, the management of the company needs to de-termine what percentage of company shares should be sold at the IPO. The authors discuss the pros and cons associated with dual-class shares for a firm. © 2014 Wiley Periodicals, Inc.
ABSTRACT Previous research has shown that initial public offerings (IPOs) have plummeted in the United States from historic norms and that global firms have stopped coming to the United States as well. In 2012, President Obama signed the... more
ABSTRACT Previous research has shown that initial public offerings (IPOs) have plummeted in the United States from historic norms and that global firms have stopped coming to the United States as well. In 2012, President Obama signed the Jumpstart Our Business Startups (JOBS) Act, whose purpose was to improve access to public capital markets by alleviating or eliminating restrictions on emerging growth companies going public through an IPO. This, it was hoped, would increase job creation and stimulate economic growth. This study examines whether chief financial officers (CFOs) have started taking their firms public in the United States again and whether CFOs of global firms have reentered the U.S. market since the passage of the JOBS Act. The article also addresses whether global firms have reentered the U.S. market using dual-class shares in IPOs to maintain control of the firms they have created.
Despite many efforts to develop a universally accepted theory of capital structure, observed capital structures do not appear to conform to existing theories. The objective of this research is to empirically examine capital structure... more
Despite many efforts to develop a universally accepted theory of capital structure, observed capital structures do not appear to conform to existing theories. The objective of this research is to empirically examine capital structure decisions in terms of the relationship of debt policy with ...
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In recent years many shareholders have voted to amend their corporate charters to decrease the likelihood of a hostile takeover. Critics of antitakeover amendments argue that by sheltering management from the market for corporate control,... more
In recent years many shareholders have voted to amend their corporate charters to decrease the likelihood of a hostile takeover. Critics of antitakeover amendments argue that by sheltering management from the market for corporate control, management may become ...
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The global banking environment is experiencing significant change as regulatory and geographical barriers to competition are reduced. As these barriers are re-moved, greater integration of banking services is developing throughout the... more
The global banking environment is experiencing significant change as regulatory and geographical barriers to competition are reduced. As these barriers are re-moved, greater integration of banking services is developing throughout the world affecting the performance and structure of ...
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ABSTRACT The flexibility of managers to respond to risk and uncertainty inherent in business decisions is clearly of value. This value has historically been recognized in an ad hoc manner in the absence of a methodology for more rigorous... more
ABSTRACT The flexibility of managers to respond to risk and uncertainty inherent in business decisions is clearly of value. This value has historically been recognized in an ad hoc manner in the absence of a methodology for more rigorous assessment of value. The application of real option methodology represents a more objective mechanism that allows managers to hedge against adverse effects and exploit upside potential. Of particular interest to managers in the merger and acquisition (M&A) process is the value of such flexibility related to the particular terms of a transaction. Typically, stock for stock transactions take more time to complete as compared to cash given the time lapse between announcement and completion. Over this period, if stock prices are volatile, stock for stock exchanges may result in adverse selection through the dilution of shareholder wealth of an acquiring firm or a target firm.The paper develops a real option collar model that may be employed by managers to measure the market price risk involved to their shareholders in offering or accepting stock. We further discuss accounting issues related to this contingency pricing effect. Using an acquisition example from U.S. banking industry we illustrate how the collar arrangement may be used to hedge market price risk through flexibility to renegotiate the deal by exercising managerial options.
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ABSTRACT This study examines the relationship between corporate di-versification and financial performance. The use of a stock mar-ket based measure of diversification allowed a much larger data-base than in previous studies and overcame... more
ABSTRACT This study examines the relationship between corporate di-versification and financial performance. The use of a stock mar-ket based measure of diversification allowed a much larger data-base than in previous studies and overcame the subjective nature of measuring ...
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Abstract The excess returns associated with repurchase an-nouncements are viewed largely as a reaction to manage-ment's statement that the firm's shares are underpriced; management's signal provides new information that... more
Abstract The excess returns associated with repurchase an-nouncements are viewed largely as a reaction to manage-ment's statement that the firm's shares are underpriced; management's signal provides new information that en-hances the firm's market value. Although earlier ...
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JAMES A. VERBRUGGE JOHN S. JAHERA, JR.* ... *An earlier version of this paper was presented at the annual meeting of the Financial Management Association, October 1979, Boston. ... JAMES A. VERBRUGGE is professor of finance, University of... more
JAMES A. VERBRUGGE JOHN S. JAHERA, JR.* ... *An earlier version of this paper was presented at the annual meeting of the Financial Management Association, October 1979, Boston. ... JAMES A. VERBRUGGE is professor of finance, University of Georgia. JOHN S. JAHERA, JR., is ...
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The purpose of this paper is to develop a theoretical model based on option pricing theory to value managerial flexibility arising in stock for stock exchanges. The paper shows how a mergers and acquisition (M&A) deal may be optimally... more
The purpose of this paper is to develop a theoretical model based on option pricing theory to value managerial flexibility arising in stock for stock exchanges. The paper shows how a mergers and acquisition (M&A) deal may be optimally structured as a real options swap by ...
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Employee Stock Ownership Programs (ESOPs) have long been promoted as a motivational tool: employees become profit-minded owners. Latterly, however, more ESOPs are being used as part of a takeover defense: here the ESOPs main purpose is to... more
Employee Stock Ownership Programs (ESOPs) have long been promoted as a motivational tool: employees become profit-minded owners. Latterly, however, more ESOPs are being used as part of a takeover defense: here the ESOPs main purpose is to put more company ...
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In the wake of numerous hostile corporate takeover attempts in the 1980s, many states enacted antitakeover legislation, often as a direct response to a particular takeover effort in the specific state. A number of empirical studies assess... more
In the wake of numerous hostile corporate takeover attempts in the 1980s, many states enacted antitakeover legislation, often as a direct response to a particular takeover effort in the specific state. A number of empirical studies assess the impact of such statutes on firm value ...