For seasoned equity offerings, the discounting of the offer price from the closing price on the previous day is influenced by the level of asymmetric information surrounding the firm and the offering, as well as compensation to investors willing to purchase new shares. Discounting is important...

Standard present-value models suggest that exchange rates are driven by expected future fundamentals, implying that current exchange rates contain predictive information about future fundamentals. We test the validity of this key empirical prediction of present-value models in a sample of 35...