Stephen Ferris - Academia.edu (original) (raw)

Papers by Stephen Ferris

Research paper thumbnail of International Differences in dividend policy: Catering, legal, and cultural effects. Working paper

Recent research on international differences in the dividend policy provides conflicting evidence... more Recent research on international differences in the dividend policy provides conflicting evidence on catering theory of dividends. Using a sample of over 25,000 firm-year observations, we find a substantial variation in the propensity to pay dividends. We determine that larger firms, firms with higher profitability, and firms with lower growth opportunities have a higher propensity to pay dividends. Further, we document important cross-sectional differences in the presence of catering effects driven by legal regime, the extent of anti-director rights, and ownership concentration. We also find evidence that catering effects persist even after controlling for agency cost-based lifecycle proxies. Overall, we conclude that catering remains an important factor in explaining international dividend policies.

Research paper thumbnail of Derivative Lawsuits as a Corporate Governance Mechanism: Empirical Evidence on Board Changes Surrounding Filings

Ssrn Electronic Journal, 2004

Legal rights of investors have been recognized as an essential component of corporate governance.... more Legal rights of investors have been recognized as an essential component of corporate governance. We assess the efficacy of these rights by examining board changes surrounding the filings of shareholder derivative lawsuits. We find that the incidence of derivative lawsuits is higher for firms with a greater likelihood of agency conflicts. We also find that derivative lawsuits are associated with significant improvements in the boards of directors. In particular, the proportion of outside representation on the board of directors increases. There is also some evidence that other board characteristics change favorably. These findings suggest that shareholder derivative lawsuits are not frivolous, as is often claimed, but rather that they can serve as an effective corporate governance mechanism.

Research paper thumbnail of Coordination Failures and Government Policy: Evidence From Emerging Countries

Journal of Development Studies, Mar 29, 2010

Rodrik [JIE, 1996] argues for coordinated government policy when emerging countries are stuck in ... more Rodrik [JIE, 1996] argues for coordinated government policy when emerging countries are stuck in a low wage equilibrium because of a co-ordination failure. Because the return to intermediate output is markedly below that realised when a minimum threshold number of varieties ...

Research paper thumbnail of CEO Succession, Incentives and Firm Performance: Insiders versus Outsiders

Research paper thumbnail of Risk and wealth effects of U.S. firm joint venture activity

Review of Financial Economics, 2006

Using a sample of US firms engaged in joint venture activity primarily in the 1990s, we test the ... more Using a sample of US firms engaged in joint venture activity primarily in the 1990s, we test the hypothesis that joint venture activity is motivated by a desire for efficient risk sharing. We find that approximately ninety-six percent of our sample experiences a risk change in response to joint venture activity. A significant proportion of these experience a reduction in

Research paper thumbnail of The usage of convertible and warrant bonds by Japanese firms: Risk-shifting or the delayed issuance of equity?

ABSTRACT This paper examines the risk-shifting and delayed equity hypotheses concerning the use o... more ABSTRACT This paper examines the risk-shifting and delayed equity hypotheses concerning the use of convertible securities by Japanese firms. The popularity of equity-linked debt instruments in Japan where institutional arrangements can mitigate the transfer wealth from bondholders to stockholders appears inconsistent with the risk-shifting hypothesis. Further, we find that the probability of selecting convertible securities over common equity is not positively related to the potential for a wealth transfer from bondholders to stockholders. We obtain similar results when we examine convertible debt ratios. However, we find evidence consistent with the delayed equity hypothesis that firms use convertibles to delay equity when they have favorable information about the firm. The stock price increases preceding and following convertible issuance are positively related to offering size and growth opportunities as predicted by the delayed equity hypothesis. Overall, our findings endorse the delayed-equity hypothesis as an explanation for the use of convertible securities by Japanese firms.

Research paper thumbnail of Does Your Vote Count? When Firms Bypass Shareholder Approval of Board Appointments

SSRN Electronic Journal, 2000

ABSTRACT Although U.S. state corporate laws require shareholders to elect the firm's dire... more ABSTRACT Although U.S. state corporate laws require shareholders to elect the firm's directors, under certain circumstances managers can circumvent this requirement and appoint new directors without shareholder approval. The appointment of directors without shareholder approval usually occurs simultaneously with the private placement of financial securities. In this study we examine the causes and consequences of this appointment of directors without a shareholder election, a phenomenon that remains unexamined in the literature. The 'bundling' of board seats with the purchase of corporate securities that is characteristic of some private issues serves as a unique environment in which to assess the importance of shareholder voting rights. Our analysis of the effect of circumvention of shareholder approval on the nature of the directors subsequently appointed contributes to the policy controversy regarding the need for external regulation to strengthen the position of independent directors. In particular, our study is relevant to the current debate over the SEC's recent proposal to provide shareholders with the power to directly place director candidates on the corporate ballot in certain circumstances. Further, since this research examines the effects resulting from the nullification of a basic shareholder right, it helps to establish the impact that the violation of one share-one vote rules might have on the corporate governance for firms in countries with weak shareholder protection. By analyzing a sample of U.S. firms that appoint directors in combination with private offerings between 1995 and 2000, we find that firms in which agency costs are higher are more likely to nullify shareholder approval of board appointments at the time of the private placement. Firms that bypass shareholders are also less likely to appoint independent directors or to elect an independent director as chairman of the board. We also find that the stock market reacts more positively to the announcement of the private offering when the firm submits the board candidates for shareholder approval. Further, we show that firms that bypass shareholder approval significantly underperform after the private offering when compared to firms seeking shareholder approval. We conclude from our findings that the firm's decision to circumvent shareholder ratification is most consistent with the entrenchment hypothesis.

Research paper thumbnail of Warm with Sunny Skies': Disclosure Statement Forecasts

SSRN Electronic Journal, 2000

Page 1. "Warm with Sunny Skies": Disclosure Statement Forecasts by Bria... more Page 1. "Warm with Sunny Skies": Disclosure Statement Forecasts by Brian L. Betker, Stephen P. Ferris and Robert M. Lawless* In casting their ballot on whether a chapter 11 firm survives or dies, creditors rely on the information ...

Research paper thumbnail of Firm Value and Marketability Discounts

SSRN Electronic Journal, 2000

discussing the various valuation issues arising during litigation for such causes of action as sh... more discussing the various valuation issues arising during litigation for such causes of action as shareholder appraisal actions, breach of fiduciary duty, fraud, breach of contract, bankruptcy reorganization, and tax proceedings).

Research paper thumbnail of Too Busy to Mind the Business? Monitoring by Directors with Multiple Board Appointments

The Journal of Finance, 2003

We examine the number of external appointments held by corporate directors. Directors who serve l... more We examine the number of external appointments held by corporate directors. Directors who serve larger firms and sit on larger boards are more likely to attract additional directorships. Consistent with , we find that firm performance has a positive effect on the number of appointments held by a director. We find no evidence that multiple directors shirk their responsibilities to serve on board committees. We also do not find that multiple directors are associated with a greater likelihood of securities fraud litigation. We conclude that the evidence does not support calls for limits on directorships held by an individual.

Research paper thumbnail of Journal Influence on the Design of Finance Doctoral Education

The Journal of Finance, 1997

This article surveys the influence of research journals on finance doctoral education. Influence ... more This article surveys the influence of research journals on finance doctoral education. Influence is measured by citations from syllabi of finance seminars. A sample of 101 distinct syllabi submitted by 33 finance doctoral programs yields a list of 1,031 articles cited by at least two schools. These 1,031 articles generate 3,273 citations referencing 17 finance, economics, and accounting journals, where multiple citations from a single school are counted as a single citation. The most notable findings are the wide variety of seminar content across finance doctoral programs and the dominance of five finance journals in providing this diverse content.

Research paper thumbnail of God Save the Queen and Her Dividends: Corporate Payouts in the United Kingdom*

The Journal of Business, 2006

... Author Info. Stephen P. Ferris (University of Missouri–Columbia) Nilanjan Sen (Nanyang Techno... more ... Author Info. Stephen P. Ferris (University of Missouri–Columbia) Nilanjan Sen (Nanyang Technological University) Ho Pei Yui (Nanyang Technological University) Abstract. ... Publisher Info. Article provided by University of Chicago Press in its journal Journal of Business. ...

Research paper thumbnail of PREDICTING CONTEMPORARY VOLUME WITH HISTORIC VOLUME AT DIFFERENTIAL PRICE LEVELS: EVIDENCE SUPPORTING THE DISPOSITION EFFECT

The Financial Review, 1987

... Following Beaver [2], Dyl [7] and LS, (1) allows us to estimate eit, the fraction of the outs... more ... Following Beaver [2], Dyl [7] and LS, (1) allows us to estimate eit, the fraction of the outstanding stock of i traded on day t after ... To the extent that estimated prices will err above and below true values, the average error should be negligible in a sample of ninety obser-vations. ...

Research paper thumbnail of The Effect of SEC-Ordered Suspensions on Returns, Volatility, and Trading Volume

The Financial Review, 1992

Abstract This study evaluates the effect of SEC-ordered sus-pensions on securities&am... more Abstract This study evaluates the effect of SEC-ordered sus-pensions on securities' returns, volatility, and trading volume during 1963-1987. It is found that there is a per-manent devaluation of these securities during the sus-pension. This result, however, is sensitive to the an- ...

Research paper thumbnail of Evolutionary tree for apes and humans based on cleavage maps of mitochondrial DNA

Proceedings of the National Academy of Sciences, 1981

The high rate ofevolution of mitochondrial DNA makes this molecule suitable for genealogical rese... more The high rate ofevolution of mitochondrial DNA makes this molecule suitable for genealogical research on such closely related species as humans and apes. Because previous approaches failed to establish the branching order of the lineages leading to humans, gorillas, and chimpanzees, we compared human mitochondrial DNA to mitochondrial DNA.from five species, of ape (common chimpanzee, pygmy chimpanzee, gorilla, orangutan, and gibbon). About. 50 restriction endonuclease cleavage sites were mapped in each mitochondrial DNA, and the six.maps were aligned with respect to 11 invariant positions. Differences among the maps were evident at 121 positions. Both conserved and

Research paper thumbnail of Flow of mitochondrial DNA across a species boundary

Proceedings of the National Academy of Sciences, 1983

Restriction analysis shows that wild Scandinavian mice belonging to the species Mus musculus cont... more Restriction analysis shows that wild Scandinavian mice belonging to the species Mus musculus contain the mitochondrial DNA of a neighboring species, M. domesticus. This demonstration results from comparisons of Scandinavian mice with authentic M. domesticus and M. musculus from other parts of Europe. Electrophoretic and immunological analysis of eight diagnostic proteins confirms that mice from north of the hybrid zone in Denmark are M. musculus in regard to their nuclear genes. In contrast, the mice tested from this region and a nearby part of Sweden have exclusively M. domesticus types of mitochondrial DNA. Phylogenetic analysis of the restriction maps suggests that the mitochondrial DNAs found in Scandinavian M. musculus could stem from a single M. domesticus female.

Research paper thumbnail of Extensive polymorphism in the mitochondrial DNA of apes

Proceedings of the National Academy of Sciences, 1981

Research paper thumbnail of The role of corporate groupings in controlling agency conflicts: The case of keiretsu

Pacific-Basin Finance Journal, 1995

Jensen and Meckling (1976) suggest that security analysis monitoring serves to reduce the magnitu... more Jensen and Meckling (1976) suggest that security analysis monitoring serves to reduce the magnitude of agency costs present within the modern corporation. Moyer et al. (1989) provide evidence consistent with this hypothesis for a sample of publicly-traded American firms. In this study ...

Research paper thumbnail of Organizing New Product Development Projects in Strategic Alliances

Organization Science, 2004

Research paper thumbnail of Close genetic similarity of Atlantic and Pacific skipjack tuna (Katsuwonus pelamis) demonstrated with restriction endonuclease analysis of mitochondrial DNA

Marine Biology, 1984

Restriction endonuclease analysis of mitochondrial DNA indicated a surprisingly high degree of ge... more Restriction endonuclease analysis of mitochondrial DNA indicated a surprisingly high degree of genetic similarity between skipjack tuna (Katsuwonus pelamis) from the Atlantic and Pacific Oceans. The present results (1983) support the findings of previous morphological and electrophoretic studies. Evidently, since the uplift of the Panama land bridge about 3.1 million years ago, there has been continued genetic contact between Atlantic and Pacific skipjack tuna, presumably via the Southern Ocean.

Research paper thumbnail of International Differences in dividend policy: Catering, legal, and cultural effects. Working paper

Recent research on international differences in the dividend policy provides conflicting evidence... more Recent research on international differences in the dividend policy provides conflicting evidence on catering theory of dividends. Using a sample of over 25,000 firm-year observations, we find a substantial variation in the propensity to pay dividends. We determine that larger firms, firms with higher profitability, and firms with lower growth opportunities have a higher propensity to pay dividends. Further, we document important cross-sectional differences in the presence of catering effects driven by legal regime, the extent of anti-director rights, and ownership concentration. We also find evidence that catering effects persist even after controlling for agency cost-based lifecycle proxies. Overall, we conclude that catering remains an important factor in explaining international dividend policies.

Research paper thumbnail of Derivative Lawsuits as a Corporate Governance Mechanism: Empirical Evidence on Board Changes Surrounding Filings

Ssrn Electronic Journal, 2004

Legal rights of investors have been recognized as an essential component of corporate governance.... more Legal rights of investors have been recognized as an essential component of corporate governance. We assess the efficacy of these rights by examining board changes surrounding the filings of shareholder derivative lawsuits. We find that the incidence of derivative lawsuits is higher for firms with a greater likelihood of agency conflicts. We also find that derivative lawsuits are associated with significant improvements in the boards of directors. In particular, the proportion of outside representation on the board of directors increases. There is also some evidence that other board characteristics change favorably. These findings suggest that shareholder derivative lawsuits are not frivolous, as is often claimed, but rather that they can serve as an effective corporate governance mechanism.

Research paper thumbnail of Coordination Failures and Government Policy: Evidence From Emerging Countries

Journal of Development Studies, Mar 29, 2010

Rodrik [JIE, 1996] argues for coordinated government policy when emerging countries are stuck in ... more Rodrik [JIE, 1996] argues for coordinated government policy when emerging countries are stuck in a low wage equilibrium because of a co-ordination failure. Because the return to intermediate output is markedly below that realised when a minimum threshold number of varieties ...

Research paper thumbnail of CEO Succession, Incentives and Firm Performance: Insiders versus Outsiders

Research paper thumbnail of Risk and wealth effects of U.S. firm joint venture activity

Review of Financial Economics, 2006

Using a sample of US firms engaged in joint venture activity primarily in the 1990s, we test the ... more Using a sample of US firms engaged in joint venture activity primarily in the 1990s, we test the hypothesis that joint venture activity is motivated by a desire for efficient risk sharing. We find that approximately ninety-six percent of our sample experiences a risk change in response to joint venture activity. A significant proportion of these experience a reduction in

Research paper thumbnail of The usage of convertible and warrant bonds by Japanese firms: Risk-shifting or the delayed issuance of equity?

ABSTRACT This paper examines the risk-shifting and delayed equity hypotheses concerning the use o... more ABSTRACT This paper examines the risk-shifting and delayed equity hypotheses concerning the use of convertible securities by Japanese firms. The popularity of equity-linked debt instruments in Japan where institutional arrangements can mitigate the transfer wealth from bondholders to stockholders appears inconsistent with the risk-shifting hypothesis. Further, we find that the probability of selecting convertible securities over common equity is not positively related to the potential for a wealth transfer from bondholders to stockholders. We obtain similar results when we examine convertible debt ratios. However, we find evidence consistent with the delayed equity hypothesis that firms use convertibles to delay equity when they have favorable information about the firm. The stock price increases preceding and following convertible issuance are positively related to offering size and growth opportunities as predicted by the delayed equity hypothesis. Overall, our findings endorse the delayed-equity hypothesis as an explanation for the use of convertible securities by Japanese firms.

Research paper thumbnail of Does Your Vote Count? When Firms Bypass Shareholder Approval of Board Appointments

SSRN Electronic Journal, 2000

ABSTRACT Although U.S. state corporate laws require shareholders to elect the firm's dire... more ABSTRACT Although U.S. state corporate laws require shareholders to elect the firm's directors, under certain circumstances managers can circumvent this requirement and appoint new directors without shareholder approval. The appointment of directors without shareholder approval usually occurs simultaneously with the private placement of financial securities. In this study we examine the causes and consequences of this appointment of directors without a shareholder election, a phenomenon that remains unexamined in the literature. The 'bundling' of board seats with the purchase of corporate securities that is characteristic of some private issues serves as a unique environment in which to assess the importance of shareholder voting rights. Our analysis of the effect of circumvention of shareholder approval on the nature of the directors subsequently appointed contributes to the policy controversy regarding the need for external regulation to strengthen the position of independent directors. In particular, our study is relevant to the current debate over the SEC's recent proposal to provide shareholders with the power to directly place director candidates on the corporate ballot in certain circumstances. Further, since this research examines the effects resulting from the nullification of a basic shareholder right, it helps to establish the impact that the violation of one share-one vote rules might have on the corporate governance for firms in countries with weak shareholder protection. By analyzing a sample of U.S. firms that appoint directors in combination with private offerings between 1995 and 2000, we find that firms in which agency costs are higher are more likely to nullify shareholder approval of board appointments at the time of the private placement. Firms that bypass shareholders are also less likely to appoint independent directors or to elect an independent director as chairman of the board. We also find that the stock market reacts more positively to the announcement of the private offering when the firm submits the board candidates for shareholder approval. Further, we show that firms that bypass shareholder approval significantly underperform after the private offering when compared to firms seeking shareholder approval. We conclude from our findings that the firm's decision to circumvent shareholder ratification is most consistent with the entrenchment hypothesis.

Research paper thumbnail of Warm with Sunny Skies': Disclosure Statement Forecasts

SSRN Electronic Journal, 2000

Page 1. "Warm with Sunny Skies": Disclosure Statement Forecasts by Bria... more Page 1. "Warm with Sunny Skies": Disclosure Statement Forecasts by Brian L. Betker, Stephen P. Ferris and Robert M. Lawless* In casting their ballot on whether a chapter 11 firm survives or dies, creditors rely on the information ...

Research paper thumbnail of Firm Value and Marketability Discounts

SSRN Electronic Journal, 2000

discussing the various valuation issues arising during litigation for such causes of action as sh... more discussing the various valuation issues arising during litigation for such causes of action as shareholder appraisal actions, breach of fiduciary duty, fraud, breach of contract, bankruptcy reorganization, and tax proceedings).

Research paper thumbnail of Too Busy to Mind the Business? Monitoring by Directors with Multiple Board Appointments

The Journal of Finance, 2003

We examine the number of external appointments held by corporate directors. Directors who serve l... more We examine the number of external appointments held by corporate directors. Directors who serve larger firms and sit on larger boards are more likely to attract additional directorships. Consistent with , we find that firm performance has a positive effect on the number of appointments held by a director. We find no evidence that multiple directors shirk their responsibilities to serve on board committees. We also do not find that multiple directors are associated with a greater likelihood of securities fraud litigation. We conclude that the evidence does not support calls for limits on directorships held by an individual.

Research paper thumbnail of Journal Influence on the Design of Finance Doctoral Education

The Journal of Finance, 1997

This article surveys the influence of research journals on finance doctoral education. Influence ... more This article surveys the influence of research journals on finance doctoral education. Influence is measured by citations from syllabi of finance seminars. A sample of 101 distinct syllabi submitted by 33 finance doctoral programs yields a list of 1,031 articles cited by at least two schools. These 1,031 articles generate 3,273 citations referencing 17 finance, economics, and accounting journals, where multiple citations from a single school are counted as a single citation. The most notable findings are the wide variety of seminar content across finance doctoral programs and the dominance of five finance journals in providing this diverse content.

Research paper thumbnail of God Save the Queen and Her Dividends: Corporate Payouts in the United Kingdom*

The Journal of Business, 2006

... Author Info. Stephen P. Ferris (University of Missouri–Columbia) Nilanjan Sen (Nanyang Techno... more ... Author Info. Stephen P. Ferris (University of Missouri–Columbia) Nilanjan Sen (Nanyang Technological University) Ho Pei Yui (Nanyang Technological University) Abstract. ... Publisher Info. Article provided by University of Chicago Press in its journal Journal of Business. ...

Research paper thumbnail of PREDICTING CONTEMPORARY VOLUME WITH HISTORIC VOLUME AT DIFFERENTIAL PRICE LEVELS: EVIDENCE SUPPORTING THE DISPOSITION EFFECT

The Financial Review, 1987

... Following Beaver [2], Dyl [7] and LS, (1) allows us to estimate eit, the fraction of the outs... more ... Following Beaver [2], Dyl [7] and LS, (1) allows us to estimate eit, the fraction of the outstanding stock of i traded on day t after ... To the extent that estimated prices will err above and below true values, the average error should be negligible in a sample of ninety obser-vations. ...

Research paper thumbnail of The Effect of SEC-Ordered Suspensions on Returns, Volatility, and Trading Volume

The Financial Review, 1992

Abstract This study evaluates the effect of SEC-ordered sus-pensions on securities&am... more Abstract This study evaluates the effect of SEC-ordered sus-pensions on securities' returns, volatility, and trading volume during 1963-1987. It is found that there is a per-manent devaluation of these securities during the sus-pension. This result, however, is sensitive to the an- ...

Research paper thumbnail of Evolutionary tree for apes and humans based on cleavage maps of mitochondrial DNA

Proceedings of the National Academy of Sciences, 1981

The high rate ofevolution of mitochondrial DNA makes this molecule suitable for genealogical rese... more The high rate ofevolution of mitochondrial DNA makes this molecule suitable for genealogical research on such closely related species as humans and apes. Because previous approaches failed to establish the branching order of the lineages leading to humans, gorillas, and chimpanzees, we compared human mitochondrial DNA to mitochondrial DNA.from five species, of ape (common chimpanzee, pygmy chimpanzee, gorilla, orangutan, and gibbon). About. 50 restriction endonuclease cleavage sites were mapped in each mitochondrial DNA, and the six.maps were aligned with respect to 11 invariant positions. Differences among the maps were evident at 121 positions. Both conserved and

Research paper thumbnail of Flow of mitochondrial DNA across a species boundary

Proceedings of the National Academy of Sciences, 1983

Restriction analysis shows that wild Scandinavian mice belonging to the species Mus musculus cont... more Restriction analysis shows that wild Scandinavian mice belonging to the species Mus musculus contain the mitochondrial DNA of a neighboring species, M. domesticus. This demonstration results from comparisons of Scandinavian mice with authentic M. domesticus and M. musculus from other parts of Europe. Electrophoretic and immunological analysis of eight diagnostic proteins confirms that mice from north of the hybrid zone in Denmark are M. musculus in regard to their nuclear genes. In contrast, the mice tested from this region and a nearby part of Sweden have exclusively M. domesticus types of mitochondrial DNA. Phylogenetic analysis of the restriction maps suggests that the mitochondrial DNAs found in Scandinavian M. musculus could stem from a single M. domesticus female.

Research paper thumbnail of Extensive polymorphism in the mitochondrial DNA of apes

Proceedings of the National Academy of Sciences, 1981

Research paper thumbnail of The role of corporate groupings in controlling agency conflicts: The case of keiretsu

Pacific-Basin Finance Journal, 1995

Jensen and Meckling (1976) suggest that security analysis monitoring serves to reduce the magnitu... more Jensen and Meckling (1976) suggest that security analysis monitoring serves to reduce the magnitude of agency costs present within the modern corporation. Moyer et al. (1989) provide evidence consistent with this hypothesis for a sample of publicly-traded American firms. In this study ...

Research paper thumbnail of Organizing New Product Development Projects in Strategic Alliances

Organization Science, 2004

Research paper thumbnail of Close genetic similarity of Atlantic and Pacific skipjack tuna (Katsuwonus pelamis) demonstrated with restriction endonuclease analysis of mitochondrial DNA

Marine Biology, 1984

Restriction endonuclease analysis of mitochondrial DNA indicated a surprisingly high degree of ge... more Restriction endonuclease analysis of mitochondrial DNA indicated a surprisingly high degree of genetic similarity between skipjack tuna (Katsuwonus pelamis) from the Atlantic and Pacific Oceans. The present results (1983) support the findings of previous morphological and electrophoretic studies. Evidently, since the uplift of the Panama land bridge about 3.1 million years ago, there has been continued genetic contact between Atlantic and Pacific skipjack tuna, presumably via the Southern Ocean.