We study the impacts of regime changes and related rule implementations on IPOs’ initial return for China’s entrepreneurial boards (ChiNext and STAR). We propose that an initial return contains the issuer’s fair value and an investors’ overreaction and examine their magnitudes and...

We study the impacts of regime changes and related rule implementations on IPOs’ initial return for China’s entrepreneurial boards. We find that the most efficient regulation regime in China’s IPO pricing has four characteristics: 1) registration system, 2) no hard return caps and no...

Do corporate bond funds have a real impact on firm policies? In this paper, we examine whether fund herding alters the overall information environment of a firm’s credit risk, and thus affects the firm’s decision to issue bonds. Using the firm-level measure of herding by U.S. bond mutual...

This study examines the influence of underwriter-auditor relationship (UAR) on pre-initial public offering (IPO) earnings management. Using a sample of Chinese to-be-listed firms, we find that a close UAR, as reflected in repeated collaborations between an underwriter and an audit firm in IPOs,...

We empirically examine theories of secured debt. Credit risk and asset volatility increase with secured debt issuance, and the strength of this association is unrelated to contemporaneous investment. Hand-collected data reveals most secured debt is secured on all assets of the firm and rarely...