We examine the effects of secondary market liquidity on firm value and the decision to conduct an Initial Public Offering (IPO). Competitive liquidity provision can lead to market failure as the IPO either does not occur or the IPO price is discounted to reflect that some welfare-enhancing...

Stock prices incorporate less “news” before negative events than positive events. Further, we find evidence that informed agents use less price aggressive (limit) orders before negative events and more price aggressive (market) orders before positive events ("buy-sell asymmetry"). Motivated...

We examine two decades of block trading in corporate bonds to test theoretical predictions on receiving investors to whom the dealer distributes the block. Receiving investors lose on average from participating as a counterparty in the block trade. Nevertheless, participation is often optimal,...