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This study analyses the relationship between P/E ratios and interest rates from early 1965 to the end of 1997. Historical Canadian data indicate that the average P/E ratio of the TSE 300 Index which was 17.17 in the 1960s and early 1970s decreased to about 8.92 in the periods of high interest rates in the late 1970s and early 1980s. However, in the late 1980s and 1990s the average P/E ratio increased to the previous levels of 17.20 when interest rates were on the decline. A similar pattern was observed for the various industry P/E ratios. The latest period is characterized by higher volatility compared to the previous periods. The correlations between P/Es and interest rates were negative and very high, confirming the inverse relationship between P/E ratios and interest rates. A regression analysis also indicates that interest rates are inversely related to P/E ratios after controlling for other relevant factors. This study, therefore, suggests that the low levels of interest rates, increased dividend payout, low corporate bond risk premium, and higher corporate earnings are the major factors which propelled equity values to their previous high levels.

The control and capitalization of dual-class firms after an initial public offering is discussed in detail. Dual-class firms are more often found with family interests rather than concentrated ownership.

I. INTRODUCTION Recent empirical investigation of the relationship between export revenue and economic growth has been conducted using the bivariate causality tests of Granger (1969) and Sims (1972). Such papers [...]

Deregulation in Canada allowed the operations and ownership of banks by non-bank financial institutions. Investigation showed significant cumulative gain for insurance industry, but no evidence of wealth transfer among the institutions, no significant effect on the risk of the banks, but a systematic increase in risk of the non-bank financial institutions.

Dual class companies experience takeover returns equal to those of single class firms. A dual class firm refers to one that issues two types of shares: voting, which entitles the holder to a vote on a corporation's major decisions, and restricted, which does not confer voting rights. Data about takeovers involving dual class firms on the Toronto Stock Exchange are analyzed to test the hypothesis that despite being less expensive, restricted shares earn a takeover return equal to that of voting shares. This hypothesis was supported. In addition, the distinction between the two classes of shares brings with it a differential takeover value on the controlling shareholders. These results suggest that voting shares of dual class firms earn higher takeover returns than do shares of single class firms.

Complete tender offers, in which at least 90% of outstanding shares are bought by a small number of bidders, are found to result in larger gains for shareholders than do partial acquisitions. Gains of as high as 21.90% are acheived through complete tender offers as compared to a 12.80% gain for partial acquisitions. Shareholders view complete tender offers as more beneficial in comparison with partial offerings.