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In recent years, there has been a large increase in the variety of securities which corporations issue, going well beyond traditional debt and equity (Merton, 1995). Some complex securities combining [...]

The relationship of trade credit with quality guarantees and product marketability were investigated. The sample consisted of all industrial firms with COMPUSTAT records from 1985 to 1987. Results showed that extension of trade credit is prevalent among small firms, firms that require a longer production lead time and firms whose assessment of quality takes a longer period of time. The findings imply that these firms raise the implicit costs of trade credit extension by funding their receivables by way of payables and short-term borrowing. Moreover, firms that have more variable demand were found to extend trade credit than firms that have stable demand. The evidence show that the trade credit of a firm indicates not only its financial and liquidity standing but also quality guarantees and product marketability.

Michael Long is an Associate Professor of Finance at the Graduate School of Management, Rutgers University, New Jersey. During the past fifty to sixty years, the professional manager has emerged [...]

Convertible debt and straight bonds issued in conjunction with warrants share certain distinctive characteristics. However, in looking closer at the offeror, differences become apparent. Firms that issue straight bonds with warrants are significantly riskier and somewhat smaller. The maturities of the warrants average just less than one-half of their corresponding debt maturities and one-third of the average convertible bond maturity. The potential number of shares that warrants would provide if exercised averages about 65% of the equity that convertible debt, having the same conversion price as the warrant's exercise price, would offer. This suggests that the debt-plus-warrant issuers are actually selling debt and not equity claims. (Reprinted by permission of the publisher.)

A reassessment of hospital product and productivity changes over time Introduction The introduction of the prospective payment system (PPS) in 1983 led to a dramatic change in the treatment of [...]

Coaxial Switch Technology for Collision Avoidance Systems Introduction The traffic alert and collision avoidance system (TCAS II) is an independent airborne system that joins the ground-based air traffic control (ATC) [...]

S-shaped wells, demanding sidetracks Two directional development wells were drilled successfully in the Texaco operated Gemini field, one of the first deepwater subsalt development projects in the Gulf of Mexico. [...]

Engineers are tackling buzzes, squeaks, rattles, grunts, groans, grinding, and moans in their efforts to improve customer satisfaction. Reducing noise, vibration, and harshness (NVH) generated in vehicles is a major [...]

There are hundreds of new cosmetic launches each year in the prestige arena alone. In order to achieve long-term success, brands require consideration at all stages of development--including initial conception, [...]

While many international companies would like to sell their products in the U.S., they have the impression that the U.S. market is too vast, expensive and competitive to take on. [...]

Buying securities with a large short position has become increasingly popular. The logic being that when the shorts are covered, investors who are long will profit. This logic, however, is fallacious. For such a scheme to work, the short positions cannot be hedged, and the short sellers' analyses of the firms must be wrong.

The stock purchasing technique of buying stock with the largest short interest was not fully researched when it was introduced. Analysis shows that stocks purchased very short are more likely to go down in value than appreciate. How the theory may affect other investments is discussed.