Explores the relationship between the short-term and long-term returns of initial public offerings (IPOs) and the reputation of the underwriters associated with the IPOs. Previous work in this area has shown that use of reputable underwriters for the IPO leads to less short-run underpricing....

This study examines the informational content of options trading on acquirer announcement returns. We show that implied volatility spread predicts positively on the cumulative abnormal return (CAR), and implied volatility skew predicts negatively on the CAR. The predictability is much stronger...