Public firms that place equity privately experience positive announcements effects, with negative post-announcement stock-price performance. This finding is inconsistent with the underreaction hypothesis. Instead, it suggests that investors are overoptimistic about the prospects of firms issuing...

<link rid="b6">Bloomfield and Hales (2002)</link> find strong evidence that experimental market subjects are influenced by trends and patterns in a manner supportive of the shifting regimes model of <link rid="b3">Barberis, Shleifer, and Vishny (1998)</link>. We subject the model to further empirical scrutiny using the football wagering...