Barriers to entry, concentration, and Tobin's q ratio

Includes bibliographical references (p. 17-18)

Systematic risk and market power : an application of Tobin's q

Includes bibliographical references (p. 20-21)

Management Buyouts of Divisions and Shareholder Wealth.

This paper examines the wealth effects to parent company shareholders around the announcement of divisional management buyouts. Despite the relative absence of "arms-length" bargaining between buyer and seller, there is no evidence that divisional management buyouts result in reductions in parent company share prices. Instead, small, but statistically significant, wealth gains are found during the two-day period surrounding the buyout announcement. This evidence suggests that divisional buyouts reallocate ownership of corporate assets to higher-valued uses and that parent company stockholders share in the expected benefits of this change in ownership structure. Copyright 1989 by American Finance Association.

The 1981 Tax Act: Cost Recovery Choices for Real Property

This paper examines changes in cost recovery (i.e., depreciation) patterns for realty resulting from the Economic Recovery Tax Act of 1981. While the Act provides for much shorter write-offs than were previously available, it also imposes more severe recapture penalties for commercial property that has been depreciated according to the new Accelerated Cost Recovery System. An analysis of discounted cash flows is used to predict investor selection of the most advantageous cost recovery method. Although the accelerated system is generally preferable for residential realty, there are many situations where a taxpayer owning commercial property will elect the optional fifteen-year straight-line method. Copyright American Real Estate and Urban Economics Association.