A two-stage stock-financed merger occurs when an acquiring firm first issues shares, and then engages in a cash acquisition shortly afterward. Such deals allow us to test two important hypotheses derived from decoupling: by clienteles via segmentation and by time. The acquirer's value is...

We study whether dividend yield (DY) can predict aggregate stock returns while controlling for the effects of structural breaks in the parameters and bias induced by autocorrelation in the predictor variable. To do so we apply the Bai and Perron (BP) (1998, 2000) methodology to test for...

This study examines the relationship between the high-yield bonds market and the stock market and indicates that stock returns lead high-yield bond returns. Specifically, this study further shows that this lead–lag relationship is more solid during bear market periods since a downward trend in...