We study the relationship between management behaviour and the subsequent market response in the German IPO market. When applying two forms for earnings management, issuers that overperform in the long run manage earnings less aggressively. Over shorter measurement horizons, however, the...

In comparison to macroeconomic models of nominal exchange rates, the market microstructure approach performs better in explaining exchange rate changes over short time horizons. The microstructure approach implies that information in order flow drives the dynamic processes of price evolution....