Aim: This research contributes to the study of the relationship between initial public offering (IPO) under- and overpricing and long-term firm performance as measured by net income. Research methods: Using ordinary least-squares regressions, an international sample of 444 IPOs from the United...

Aim: This research contributes to the study of the relationship between initial public offering (IPO) under- and overpricing and long-term firm performance as measured by net income. Research methods: Using ordinary least-squares regressions, an international sample of 444 IPOs from the United...

Arbitrage Pricing Theory is a one period asset pricing model used to predict equity returns based on a multivariate linear regression. We choose three sets of factors – Market specific, firm specific, and an autoregressive return term to explain returns on twenty U.S. stocks, using monthly...

We characterize the optimal investment decision and the stock value of an unlevered firm that holds the non-standard option of improving the growth rate of cashflows from its assets in place upon incurring an irreversible cost. The firm's investment policy and equity price are studied as a...

We characterize the optimal investment decision and the stock value of an unlevered firm that holds the non-standard option of improving the growth rate of cashflows from its assets in place upon incurring an irreversible cost. The firm's investment policy and equity price are studied as a...

A review and interpretation of stock market anomalies in their effect on the pricing of equity.