Glenn Boyle, Executive Director
PhD in Finance. The University of Texas at Austin, 1987.
MA (First Class Honours) in Economics. The University of Canterbury, 1982.
BA in Economics and History. The University of Canterbury, 1981.
Download Curriculum Vitae 201kB
Research Interests
- Corporate Finance
- Microeconomics
- Real Options Theory
- Cost of Capital
- Corporate Governance
- Executive Compensation
Selected publications
Academic Journal
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Other
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A large body of evidence suggests that investor protection regulation assists the development of major stock exchanges, but this leaves open the question of whether or not the same level of regulation should be applied to all centralised trading platforms.
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In this paper, we undertake a detailed analysis of the approach followed in LINES. We do so from the perspective of a referee who has been asked to provide a review of that report in order to assess its suitability for publication in an edited book or journal that adheres to conventional academic standards. Although LINES has not, of course, been submitted for publication or
review of this kind, its contents and recommendations should nevertheless meet minimum standards of accuracy, thoroughness and consistency. It is these criteria we use to assess LINES.
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When interest rates are uncertain, the net-present-value threshold required to justify an irreversible investment is increasing in the length of a project's payback period. Thus, slow-payback projects should face a higher hurdle than fast-payback projects, just as investment folklore suggests. This result suggests that the widely disparaged use of payback for capital budgeting purposes can be an intuitive response to correctly perceived costs and benefits.
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In this paper, we develop an analytical framework for conceptualising the investment test proposed by this regulator.
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In applying the CAPM to cost of capital calculations, practitioners treat the market risk premium as a free parameter to be estimated from data. However, this process ignores equilibrium in the cash market and therefore the implications of the CAPM for the premium itself.
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We show that ESO cost is extremely sensitive to employee characteristics, thereby casting doubt on the usefulness of any market-based model.
Download (PDF) 546kB
This paper considers measures of the fiscal risks of such commitments, including the excess-payment probability and cash-flow-at-risk.
Download (PDF) 239kB
We show that extending the mean-variance model to include human capital, without any other modifications, can simultaneously justify both recommendations, so long as the correlation between human capital returns and stock market returns lies within a range determined by market and investor-specific parameters.
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We analyse the reaction of the New Zealand stock market to five economically-neutral events that psychology research indicates have varying degrees of influence on emotion and mood.
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Our consulting experiences indicate that many New Zealand businesses and their managers are increasingly aware of the shortcomings of conventional methods for evaluating capital investment projects, particularly in situations where there is considerable flexibility subsequent to the project's commencement. With the busy executive in mind, we offer a brief and intuitive introduction to recently developed methods of project evaluation that explicitly incorporate managerial flexibility.
Download (PDF) 171kB
Previous studies of the relationship between deposit insurance and bank market values have usually been limited to consideration of minor changes in bank regulations, but the 1987 initiation of deposit insurance in Denmark permits examination of a potentially major policy shift. We find that the market values of large Danish banks exhibited a modest positive reaction to the announcement of insurance, but that small risky banks responded negatively. These results partially contrast with those previously found for the United States, an outcome that seems likely to reflect the interaction of deposit insurance with the particular characteristics of the pre-existing Danish regulatory system.
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We review the ability of the ex post internal rate of return (IRR) to detect monopoly profits. When market values are used as entry and exit values, the ex post IRR simply reveals whether the firm did better or worse than the market expected at the entry date.
Working Papers
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Download (PDF) 344kB
A large body of evidence suggests that investor protection regulation assists the development of major stock exchanges, but this leaves open the question of whether or not the same level of regulation should be applied to all centralised trading platforms.
Download (PDF) 165kB
Download (PDF) 422kB
Download (PDF) 218kB
Download (PDF) 122kB
When interest rates are uncertain, the net-present-value threshold required to justify an irreversible investment is increasing in the length of a project's payback period. Thus, slow-payback projects should face a higher hurdle than fast-payback projects, just as investment folklore suggests. This result suggests that the widely disparaged use of payback for capital budgeting purposes can be an intuitive response to correctly perceived costs and benefits.
Download (PDF) 215kB
In applying the CAPM to cost of capital calculations, practitioners treat the market risk premium as a free parameter to be estimated from data. However, this process ignores equilibrium in the cash market and therefore the implications of the CAPM for the premium itself.
Download (PDF) 563kB
We show that ESO cost is extremely sensitive to employee characteristics, thereby casting doubt on the usefulness of any market-based model.
Download (PDF) 546kB
This paper considers measures of the fiscal risks of such commitments, including the excess-payment probability and cash-flow-at-risk.
Download (PDF) 239kB
We show that extending the mean-variance model to include human capital, without any other modifications, can simultaneously justify both recommendations, so long as the correlation between human capital returns and stock market returns lies within a range determined by market and investor-specific parameters.
Download (PDF) 167kB
We analyse the reaction of the New Zealand stock market to five economically-neutral events that psychology research indicates have varying degrees of influence on emotion and mood.
Download (PDF) 277kB
Our consulting experiences indicate that many New Zealand businesses and their managers are increasingly aware of the shortcomings of conventional methods for evaluating capital investment projects, particularly in situations where there is considerable flexibility subsequent to the project's commencement. With the busy executive in mind, we offer a brief and intuitive introduction to recently developed methods of project evaluation that explicitly incorporate managerial flexibility.
Download (PDF) 171kB
Previous studies of the relationship between deposit insurance and bank market values have usually been limited to consideration of minor changes in bank regulations, but the 1987 initiation of deposit insurance in Denmark permits examination of a potentially major policy shift. We find that the market values of large Danish banks exhibited a modest positive reaction to the announcement of insurance, but that small risky banks responded negatively. These results partially contrast with those previously found for the United States, an outcome that seems likely to reflect the interaction of deposit insurance with the particular characteristics of the pre-existing Danish regulatory system.