The impact of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) on the value of S&amp;L stocks

Bryant, Sarah; Martzoukos, Spiros H.

doi:10.1007/bf02771477

Cited by 3 publications

(1 citation statement)

References 27 publications

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“…The equal-weighted index applies the same weight to each firm. Some researchers use the former (Bryant and Martzoukos [1998], Clem et al [2004],and Gara [2007]), while others use the latter (Berger[1993], Beatty et al [1996], and Cornett et al [1996]). In this paper I use the valueweighted index since my focus is on large firms that are likely to advertise prescription drugs to consumers, but I also verify that the results hold with the equal-weighted index.…”

Section: Datamentioning

confidence: 99%

Valuation in the Pharmaceutical Industry

Trottier

2010

SSRN Journal

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Valuation models are used extensively in Finance and Accounting to investigate various empirical questions. Conventional valuation models express firm value as a function of discounted dividends, discounted abnormal earnings, discounted cash flows, or price multiples. One limitation from using these models is that they don't capture unique industry valuation characteristics. However, modeling techniques can be used to modify a conventional model in order to reflect specific business processes. In the first chapter of this thesis I use modeling techniques to develop an industry-specific valuation model for pharmaceutical firms. This allows me to explore how investments in research and development, advertising, and production facilities create value for firms in this industry. In particular, the techniques used in this paper allow me to estimate and explore the economic rents generated by these investments. My valuation model is based on the cash inflows and outflows of a typical pharmaceutical firm. In the second chapter of this thesis I test whether the model is improved by adding a system of accounting accruals. I also compare the performance of my valuation model to a model with summary accounting measures to assess the importance of data disaggregation. The value of advertising investments is likely to have changed in the period investigated in this thesis because on August 8, 1997 the Food and Drug Administration announced that it would relax the rules on direct-to-consumer advertising of prescription drugs. The last chapter of this thesis is an event study of this regulatory change. I investigate the effect of the announcement on share price as well as the firm characteristics associated with the price reactions. Each chapter in this thesis answers a different question with respect to valuation in the pharmaceutical industry. iii

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Section: Datamentioning

confidence: 99%

Valuation in the Pharmaceutical Industry

Trottier

2010

SSRN Journal

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Valuation in the pharmaceutical industry

Trottier

2009

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Assessing The Markets Reaction To The Dodd-Frank Act

Turk

Swicegood

2012

JBER

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In this paper, we exam how the financial markets reacted to the emergence of the Dodd-Frank Wall Street Reform and Consumer Protection Act as it developed through the legislative process from policy concept to signed law. We find that investors, on the one hand, desired clarity and sustainable oversight of market activities, but simultaneously feared the possibility of over-burdensome regulation. As the legislative process developed, markets cheered any watering down of perceived over-restrictive provisions with a positive response. We also empirically noted the smaller banks stocks were generally unaffected by the entire emergence of Dodd-Frank, with nearly all of the market reaction (positive and negative) occurring with larger banks stocks.

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The impact of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) on the value of S&L stocks

Cited by 3 publications

References 27 publications

Valuation in the Pharmaceutical Industry

Valuation in the Pharmaceutical Industry

Valuation in the pharmaceutical industry

Assessing The Markets Reaction To The Dodd-Frank Act

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