Barclay Smith
V O L U M E 1 7 | N U M B E R 1 | W I N T E R 2005
Journal of
APPLIED CORPORATE FINANCE
A MO RG A N S TA N L E Y P U B L I C AT I O N
In This Issue: Capital Structure, Payout Policy, and the IPO Process
The Capital Structure Puzzle: The Evidence Revisited
8
Michael Barclay and Clifford Smith, University of Rochester
Do Managers Have Capital Structure Targets?
Evidence from Corporate Spinoffs
18
Vikas Mehrotra, University of Alberta, and Wayne Mikkelson
How To Choose a Capital Structure: Navigating the Debt-Equity Decision
26
and Megan Partch, University of Oregon
Anil Shivdasani, University of North Carolina, and
Marc Zenner, Citigroup Global Markets
Morgan Stanley Roundtable on Capital Structure and Payout Policy
36
Clifford Smith, University of Rochester; David Ikenberry,
University of Illinois; Arun Nayar, PepsiCo; and Jon Anda and Henry McVey, Morgan Stanley. Moderated by Bennett
Stewart, Stern Stewart & Co.
Bookbuilding, Auctions, and the Future of the IPO Process
55
William Wilhelm, University of Virginia and University of Oxford
Reforming the Bookbuilding Process for IPOs
67
Ravi Jagannathan, Northwestern University, and
Ann Sherman, University of Notre Dame
Assessing Growth Estimates in IPO Valuations—A Case Study
73
Roger Mills, Henley College (UK)
Incorporating Competition into the APV Technique for
Valuing Leveraged Transactions
79
Michael Ehrhardt, University of Tennessee
A Framework for Corporate Treasury Performance Measurement
88
Andrew Kalotay, Andrew Kalotay Associates
Morgan Stanley Panel Discussion on Seeking Growth in
Emerging Markets: Spotlight on China
94
Michael Richard, McDonald’s Corp., and Stephen Roach and
Jonathan Zhu, Morgan Stanley. Moderated by Frank English,
Morgan Stanley.
Trade, Jobs, and the Economic Outlook for 2005
100
Charles Plosser, University of Rochester
Leverage
106
Merton Miller, University of
Journal of
APPLIED CORPORATE FINANCE
A MO RG A N S TA N L E Y P U B L I C AT I O N
In This Issue: Capital Structure, Payout Policy, and the IPO Process
The Capital Structure Puzzle: The Evidence Revisited
8
Michael Barclay and Clifford Smith, University of Rochester
Do Managers Have Capital Structure Targets?
Evidence from Corporate Spinoffs
18
Vikas Mehrotra, University of Alberta, and Wayne Mikkelson
How To Choose a Capital Structure: Navigating the Debt-Equity Decision
26
and Megan Partch, University of Oregon
Anil Shivdasani, University of North Carolina, and
Marc Zenner, Citigroup Global Markets
Morgan Stanley Roundtable on Capital Structure and Payout Policy
36
Clifford Smith, University of Rochester; David Ikenberry,
University of Illinois; Arun Nayar, PepsiCo; and Jon Anda and Henry McVey, Morgan Stanley. Moderated by Bennett
Stewart, Stern Stewart & Co.
Bookbuilding, Auctions, and the Future of the IPO Process
55
William Wilhelm, University of Virginia and University of Oxford
Reforming the Bookbuilding Process for IPOs
67
Ravi Jagannathan, Northwestern University, and
Ann Sherman, University of Notre Dame
Assessing Growth Estimates in IPO Valuations—A Case Study
73
Roger Mills, Henley College (UK)
Incorporating Competition into the APV Technique for
Valuing Leveraged Transactions
79
Michael Ehrhardt, University of Tennessee
A Framework for Corporate Treasury Performance Measurement
88
Andrew Kalotay, Andrew Kalotay Associates
Morgan Stanley Panel Discussion on Seeking Growth in
Emerging Markets: Spotlight on China
94
Michael Richard, McDonald’s Corp., and Stephen Roach and
Jonathan Zhu, Morgan Stanley. Moderated by Frank English,
Morgan Stanley.
Trade, Jobs, and the Economic Outlook for 2005
100
Charles Plosser, University of Rochester
Leverage
106
Merton Miller, University of