In this paper, we derive an intertemporal dividend-surprise-augmented asset-pricing model and show that the expected risk premium compensates for stock returns’ exposure to (i) the market-wide dividend-surprise hedge portfolio based on dividend yield surprise and volatilities, in addition to...

In this paper, we derive an intertemporal dividend-surprise-augmented asset-pricing model and show that the expected risk premium compensates for stock returns’ exposure to (i) the market-wide dividend-surprise hedge portfolio based on dividend yield surprise and volatilities, in addition to...

While there is a large finance literature on the importance of synergy in mergers,there have been relatively few empirical studies that identify the specific sources of synergy and estimate their magnitudes. In this study, we concentrate on the value of synergy from combining two companies with...

This article investigates the role of financial analysts in product quality failures. Using a comprehensive sample of product recalls, we establish three main results. First, analyst coverage on average increases the frequency of product quality failures, particularly when managers are inclined...