Publications

2014
Chapter

Payout Policy

By: Joan Farre-Mensa, Roni Michaely and Martin Schmalz

We survey the literature on payout policy, with a particular emphasis on developments in the last two decades. Of the traditional motives of why firms pay out (agency, signaling, and taxes), the cross-sectional empirical evidence is most persuasive in favor of agency... View Details

Keywords: Finance; Investment; Financial Services Industry

SSRN

December 1999 (Revised August 2000)
Case

Superior Printing

By: Paul W. Marshall

Students must take the role of a family member who is the CEO of a commercial printing business. Discusses how you will finance growth and still maintain dividends for other family members. View Details

Keywords: Family Business; Business Growth and Maturation; Investment Return; Corporate Finance

July 1995 (Revised May 1997)
Case

Nutra Foods

By: David F. Hawkins

An investor reviews his equity investment and asks for help in understanding how the stock splits and dividends impact his investment and the company's stockholders' equity portion of the balance sheet. View Details

Keywords: History; Financial Management; Private Equity; Capital Structure; Valuation; Investment Return; Business and Shareholder Relations; Financial Services Industry; Food and Beverage Industry

December 1993 (Revised April 2006)
Case

Marriott Corporation (A)

By: Lynn S. Paine and Charles A. Nichols

Marriott Corp.'s chairman and CEO must decide whether to recommend a restructuring of the company to the board of directors. The proposal he is considering would split the Marriott Corp., a premier hotel developer, owner, and manager, into two separate companies by a... View Details

Keywords: Business or Company Management; Restructuring; Governing and Advisory Boards; Decision Making; Ethics; Management Teams; Business and Shareholder Relations; Accommodations Industry

06 Oct 2020
News

Covid-19 Is Rewriting the Rules of Corporate Governance

December 1981 (Revised September 1986)
Case

Marriott Corp.

By: Thomas R. Piper

Marriott is considering the repurchase of ten million shares. This is apparently at odds with the financial policies that the Board of Directors passed two years earlier. Students must discuss why the policies were passed and why changes are now necessary. Includes a... View Details

Keywords: Stocks; Policy; Governing and Advisory Boards; Change; Financial Strategy; Valuation

December 1999 (Revised October 2006)
Case

Praedium Corporation

By: Henry B. Reiling and Catherine M. Conneely

George Hicks and Patricia Ferrey, primary shareholders of the Praedium Corp., faced a dilemma that could dissolve their real estate management company. Praedium received an attractive offer to lease one of its properties, however, Hicks did not want to terminate the... View Details

Keywords: Leasing; Property; Taxation; Investment Return; Real Estate Industry; Construction Industry

October 2002 (Revised June 2003)
Case

Scanlon Technologies, Inc.

Deals with equity section accounting. Introduces a company that issues common stock, convertible debt, and debt. Also addresses the accounting for repurchases of common stock and the convertible debt. Discusses the accounting for dividends (cash and stock) as well as a... View Details

Keywords: Accounting

May 1987 (Revised October 1996)
Case

Murray Ohio Manufacturing Co.

By: Krishna G. Palepu

After a record year in 1983, Murray Ohio's earnings declined in 1984. The company was faced with competition from cheap imports and was experiencing declining margins. Students are asked to analyze the company's 1984 financial statements and predict whether there is... View Details

Keywords: Financial Statements; Financial Reporting; Business Divisions; Cost Management; Spending; Decision Making; Change Management; Problems and Challenges; Management Systems; Manufacturing Industry

07 Nov 2012
News

A Breed Apart: Why Our Elites Are So Disconnected

July 2009 (Revised September 2009)
Case

The Blackstone Group: Merlin Entertainment

The Blackstone Group had conducted a roll-up of theme parks and attractions business in Europe. It was considering how to generate liquidity for its investors. Blackstone entered the theme parks and attractions business in Europe by acquiring a majority stake in... View Details

Keywords: Mergers and Acquisitions; Cost vs Benefits; Private Equity; Financial Liquidity; Investment Return; Risk Management; Leasing; Entertainment and Recreation Industry; Europe

Article

Are Buybacks Really Shortchanging Investment?

By: Jesse M. Fried and Charles C.Y. Wang

It’s no secret that the American economy is suffering from the twin ills of slow growth and rising income inequality. Many lay the blame at the doors of America’s largest public corporations. The charge? These firms prefer to distribute cash generated from their... View Details

Keywords: Economy; Investment; Stocks; Business and Shareholder Relations; Equality and Inequality; United States

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March 18, 2014
Article

Family Businesses Must Set the Agenda (Without Micromanaging)

By: Josh Baron and Rob Lachenauer

This article discusses the role of owners in family businesses, using the story of Charles, who transformed his family's shipping business by taking ownership decisions. The article highlights that owners have the power to set goals, define performance metrics, hire... View Details

Keywords: Decisions; Family Ownership; Governing and Advisory Boards; Goals and Objectives

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28 Apr 2014
Working Paper Summaries

Payout Policy

Keywords: by Joan Farre-Mensa, Roni Michaely & Martin C. Schmalz

Case Problems in Finance

The leading volume of finance cases used worldwide, Case Problems in Finance presents real business situations that pose debatable alternative courses of action. The cases contain problems that can be narrowed but not always settled by the usual techniques... View Details

07 Apr 2015
First Look

First Look: April 7

Business School Case 215-020 Dogs of the Dow This case describes the Dogs of the Dow investment strategy, value investing, and using dividend yields as a means to determine intrinsic value. It also describes exchange traded notes and a... View Details

Keywords: Sean Silverthorne

November 1990 (Revised June 1993)
Case

FMC Corp.: A Recapitalization

By: William J. Bruns Jr. and Julie H. Hertenstein

A proposed recapitalization will use new debt to pay a large dividend to some shareholders in return for a reduction of their voting power. The result will be a highly leveraged financial structure and negative owners' equity. Students can trace the effects of proposed... View Details

Keywords: Financial Statements; Financial Strategy; Asset Management; Financial Management; Business Conglomerates; Borrowing and Debt; Business and Shareholder Relations; Capital Structure; Equity; Private Equity; Chemical Industry

September 2017 (Revised February 2019)
Case

Blackstone's GSO Capital: Crosstex Investment

By: Victoria Ivashina, John D. Dionne and Jeffrey Boyar

This case focuses on the Blackstone credit arm, GSO Capital as it evaluated a proposal for an equity investment into the distressed company, Crosstex Energy L.P., an integrated midstream energy company, that was hit hard by declining natural gas prices during the 2008... View Details

Keywords: Distress Investing; Rescue Financing; Investment; Borrowing and Debt; Financial Condition