Research in Finance, Volume 27: Research in Finance (Electronic book text)

The theme of this volume is Recovering from Financial Crisis. The lead chapter sets the theme bygiving insight into the recent surge in going-private transactions (and the corresponding reduction ofInitial Public Offerings). The author develops evidence (reaching back 25 years) that going-privatetransactions tend to be inversely related with the return on diversified equity portfolios, suggestingthat the recent upswing in going-private transactions in the United States is not simply the result ofthe Sarbanes Oxley Act of 2002. The second chapter offers insights into the recent round of hedgefund failures. Then, the third chapter offers new insights into some of the more controversial aspectsof private equity arrangementswhen private equity arrangements are expressed as real options, theactions of the managing partners are more readily understandable. The fourth chapter offers insightsinto why commodity producers (such as oil companies) choose not to hedge, so that their stock canoffer shareholders the opportunity to gain valuable diversification benefits using the stock as a pureplay in the commodity. Remaining chapters offer further insights into recent trends in IPO activity, lease versus purchase decisions, agency costs, project risk, and emerging markets