A Dynamic Analysis of Growth via Acquisition (2008)
Margsiri, Worawat, Mello, Antonio S., Ruckes, Martin E.
Firms can grow through internal investment or through acquisition. While internal growth takes time, an acquisition provides cash flows immediately. The opportunity to grow internally affects the...
Auctions of Shares with a Secondary Market and Tender Offers
Mello, Antonio S, Parsons, John E
The method of sale of a corporation's shares has important effects on its value and future performance. The market for shares is composed of both small investors purchasing shares for portfolio...
This paper presents a model of team composition. Heterogeneous teams have a greater variety of information sources than homogeneous teams. If information and preferences can be expressed openly,...
An Integrated Model of Multinational Flexibility and Financial Hedging
Antonio S Mello, John E Parsons, Alexander J Triantis
In this paper we construct a model of a multinational firm with flexibility in sourcing its production and with the ability to use financial markets to hedge exchange rate risk. The firm's need for...
MUKARRAM ATTARI, ANTONIO S. MELLO, MARTIN E. RUCKES
This paper develops a theory of strategic trading in markets with large arbitrageurs. If arbitrageurs are not well capitalized, capital constraints make their trades predictable. Other market...
Cooper, Ian A, Mello, Antonio S
The authors characterize the exchange of financial claims from risky swaps. These transfers are among three groups: shareholders, debtholders, and the swap counterparty. From this analysis, the...
Measuring the Agency Cost of Debt.
Mello, Antonio S, Parsons, John E
The authors adapt a contingent claims model of the firm to reflect the incentive effects of the capital structure and, thereby, to measure the agency costs of debt. An underlying model of the firm...
Martin E. Ruckes, Mukarram Attari, Antonio S. Mello
This paper develops a theory of strategic trading in markets with large influential arbitrageurs. If arbitrageurs are not very well-capitalized, margin requirements or capital constraints make their...
Martin E. Ruckes, Mukarram Attari, Antonio S. Mello
This paper develops a theory of strategic trading in markets with large influential arbitrageurs. If arbitrageurs are not very well-capitalized, margin requirements or capital constraints make their...
Arbitrage with Inelastic Liquidity Demand and Financial Constraints
Attari, Mukarram, Mello, Antonio S
This paper derives arbitrage trading strategies taking into account the fact that the actions of arbitrageurs impact prices. This avoids the difficulty of having to rely on exogenous position limits...
Mello, Antonio S, Ruckes, Martin
This Paper develops a theory of diversity in work groups within organizations. Diversity is determined by the group members' dfferences in backgrounds. Diverse teams possess more information than...
Mello, Antonio S, Parsons, John E
This article develops a model for evaluating alternative hedging strategies for financially constrained firms. A key advantage of the model is the ability to capture the intertemporal effects of...
Antonio S. Mello, John E. Parsons
This article presents a new approach to financial risk management whose primary objective is to ensure that companies have sufficient internal funds and access to outside capital to carry out their...
VALUING REAL OPTIONS: CAN RISK-ADJUSTED DISCOUNTING BE MADE TO WORK?
James E. Hodder, Antonio S. Mello, Gordon Sick
This paper examines three alternative approaches to valuing real options: (1) the standard option pricing technique using "risk-neutral" probabilities; (2) the use of risk-adjusted discount rates;...
A Dynamic Analysis of Growth via Acquisition
Worawat Margsiri, Antonio S. Mello, Martin E. Ruckes
Firms can grow through internal investment or through acquisition. While internal growth takes time, an acquisition provides cash flows immediately. The opportunity to grow internally affects the...
Do Noise Traders ?Create Their Own Space??
Bhushan, Ravi, Brown, David P., Mello, Antonio S.
We analyze myopic trader models of noisy prices in financial markets. Unlike extant analysis, such as De Long et al. (1990a), a classical equilibrium exists in our analysis, e.g., a riskless...
“Stock PIKs”- Taking a firm by its tails
Karan Bhanot, Antonio S. Mello
Payment-in-kind bonds (PIKs) make interest payments in the form of an issue of additional bonds rather than cash. This research provides a rationale for the recent PIK issuance by firms with low...
“Stock PIKs”- Taking a firm by its tails
Karan Bhanot, Antonio S. Mello
Payment-in-kind bonds (PIKs) make interest payments in the form of an issue of additional bonds rather than cash. This research provides a rationale for the recent PIK issuance by firms with low...