- Email: [email protected]
International investment restrictions and closed-end
Abstracts of Articles on Individual FinancialManagement
81
Leveraged Real Estate Investments by Tax-Exempt and Taxable Investors: Comparing the Forms of Investment, by Gilbert G. Menna
(Goodwin, Procter & Hoar, Boston, MA) This article evaluates real estate investments by entities that include taxexempt and taxable investors where the investor leverages its acquisitions. The advantages and disadvantages of four investment vehicles-partnerships, REITs, special-purpose trusts, and a multiple-entity structure that combines a partnership with a REIT-are discussed. The author concludes that the most flexible investment vehicle is the multiple-entity partnership/ REIT structure. The Journal of Real Estate Taxation, Vol. 17, No. 3 (Spring 1990), pp. 231249. (Reprinted with permission of Warren, Gorham & Lamont, Inc. All rights reserved.) How Investment Bankers Determine the Offer Price and Allocation of New Issues, by Lawrence M. Benveniste (Boston College) and
Paul A. Spindt (University of North Carolina) The authors investigate how investment bankers use indications of interest from their client investors to price and allocate new issues. They model the process as an auction constructed to induce asymmetrically informed investors to reveal what they know to the underwriter. The analysis yields a number of empirical implications, including that new issues will be underpriced and that distributional priority will be given to an underwriter’s regular investors. The authors also find that tension between an underwriter’s propensity to presell an issue and an issuing firm’s desire to obtain maximum proceeds affects the type of underwriting contract chosen. Journal of Financial Economics, Vol. 24, No. 2 (October 1989), pp. 343-361. (Reprinted with permission of the Journal of Economic Literature.) International Investment Restrictions and Closed-End Country Fund Prices, by Catherine Bonser-Neal, Greggory Brauer,
Robert Neal, and Simon Wheatley (University of Washington) Some closed-end country funds trade at large premiums relative to their net asset values. This paper examines whether international investment restrictions raise country fund price-net asset value ratios by segmenting international capital markets. The authors test whether a relation exists between announcements of changes in investment restrictions and changes in these ratios using weekly data from May 1981 to January 1989. The results provide evidence that some foreign markets are at least partially segmented from the U.S. capital markets. Journalof Finance, Vol. 45, No. 2 (June 1990), pp. 523-547. (Reprinted with permission of the Journal of Economic Literature.)
81
Leveraged Real Estate Investments by Tax-Exempt and Taxable Investors: Comparing the Forms of Investment, by Gilbert G. Menna
(Goodwin, Procter & Hoar, Boston, MA) This article evaluates real estate investments by entities that include taxexempt and taxable investors where the investor leverages its acquisitions. The advantages and disadvantages of four investment vehicles-partnerships, REITs, special-purpose trusts, and a multiple-entity structure that combines a partnership with a REIT-are discussed. The author concludes that the most flexible investment vehicle is the multiple-entity partnership/ REIT structure. The Journal of Real Estate Taxation, Vol. 17, No. 3 (Spring 1990), pp. 231249. (Reprinted with permission of Warren, Gorham & Lamont, Inc. All rights reserved.) How Investment Bankers Determine the Offer Price and Allocation of New Issues, by Lawrence M. Benveniste (Boston College) and
Paul A. Spindt (University of North Carolina) The authors investigate how investment bankers use indications of interest from their client investors to price and allocate new issues. They model the process as an auction constructed to induce asymmetrically informed investors to reveal what they know to the underwriter. The analysis yields a number of empirical implications, including that new issues will be underpriced and that distributional priority will be given to an underwriter’s regular investors. The authors also find that tension between an underwriter’s propensity to presell an issue and an issuing firm’s desire to obtain maximum proceeds affects the type of underwriting contract chosen. Journal of Financial Economics, Vol. 24, No. 2 (October 1989), pp. 343-361. (Reprinted with permission of the Journal of Economic Literature.) International Investment Restrictions and Closed-End Country Fund Prices, by Catherine Bonser-Neal, Greggory Brauer,
Robert Neal, and Simon Wheatley (University of Washington) Some closed-end country funds trade at large premiums relative to their net asset values. This paper examines whether international investment restrictions raise country fund price-net asset value ratios by segmenting international capital markets. The authors test whether a relation exists between announcements of changes in investment restrictions and changes in these ratios using weekly data from May 1981 to January 1989. The results provide evidence that some foreign markets are at least partially segmented from the U.S. capital markets. Journalof Finance, Vol. 45, No. 2 (June 1990), pp. 523-547. (Reprinted with permission of the Journal of Economic Literature.)