The price discount on privately placed stock is large and can vary substantially among firms. While earlier studies attribute price discounts on privately placed stock to illiquidity and costs of gathering information, we offer a more complete explanation. We find that firms exhibiting higher...

While exchange-traded funds (ETFs) are being created at a rapid rate, there is very limited research on how they affect the component stocks that they contain. We find that in response to the inception of ETFs, there are positive and significant valuation effects on the dominant component stocks...

We measure the change in value to sellers and buyers of divested high-tech assets. Sellers and buyers experience favorable announcement effects in response to high-tech divestitures. However, buyers of divested high-tech assets experience more favorable announcement effects than sellers, which...

Based on a comprehensive sample of European mergers over the 1997--2011 period, we find that information leakages experienced by target firms are conditioned on the investor protection characteristics in the target’s country. Specifically, information leakages are smaller for targets in...

We examine the relation between corporate diversification, real earnings management, and firm value. Our analysis indicates that industrial diversification and the combination of industrial and global diversification exacerbate real activities manipulation, whereas global diversification...

Most research that attempts to explain the method of payment used in mergers focuses on firm-specific characteristics, but ignores the influence of industry characteristics. We investigate how industry factors influence the method of payment decision in mergers (as measured by proportion of...

This paper examines the impact of the Troubled Asset Relief Program (TARP) capital injections on the operational efficiency of commercial banks. Using a nonparametric Data Envelopment Analysis to measure bank efficiency, we document a deteriorating pattern in the operating efficiency for banks...