This article investigates Granger causality between exchange rates and prices for the US and four of its trading partners: Canada, Germany, Japan and the UK. We emphasize the distinction between direct and indirect Granger causality: exchange rates directly cause prices if movements in exchange...

Purpose – This article proposes an evaluation of capital investments that accounts for not only the initial assets, but also any potential growth options. Design/methodology/approach – Using a piecewise linear approximation, a robust valuation technique is demonstrated for analyzing capital...

Prior research shows that short-sale restrictions during an IPO lead to higher aftermarket prices. Using this and heterogeneous expectations on the factor pricing coefficient, our model sheds additional light on the impact of the short-selling constraint. Like prior research, short-sale...

This paper examines the impact of existing debt on irreversible investment decisions. We confirm that bankruptcy risk discourages investment but find that the impact of debt on firm decisions decreases as uncertainty increases

This paper conducts the goodness of fit test of Bartlett (1954) on the stock prices of 12 countries during the period from January 1921 to December 1930 to examine the market efficiency hypothesis. The market efficiency hypothesis is not rejected for most European countries, but it is rejected...