Using the Stochastic Permanent Breaks (STOPBREAK) model, this study examines the relationships of the US stock market with the Japanese and eight European stock markets. The evidence indicates that the US stock market is temporally cointegrated with the markets in Japan, Germany, Netherlands and...

Underwriters in Taiwan have to purchase 10-25% of shares offered in initial public offerings (IPOs) for their own accounts. We present a signalling model showing that the underwriter retention rate can serve as a signal of firm value to investors because underwriters are investors as well. This...