Studies of long-run stock price abnormal performance aftercorporate events are plagued by difficulties in statistical inference and the inevitable joint hypothesis problem in tests of market efficiency. In this paper, we study long-run performance using a 'model-free' stochastic dominance...

We re-visit the long-horizon underperformance following seasoned equity offerings (SEOs) from an asset allocation perspective. We focus on the economic value, to a mean-variance investor, of investing in a SEO portfolio relative to a set of benchmark portfolios. As a result, we are able to avoid...

We study the long-run abnormal performance of a sample of UK firms following convertible security issues over the period 1982-1996. We make the following contributions relative to prior research. We are the first to study long-run stock price performance of firms following convertible preference...

We study, using the idea of stochastic dominance, the long-run post merger stock performance of UK acquiring firms. We compare performance by using the entire distribution of returns rather than only the mean as in traditional event studies. Our main results are as follows: First, we find that,...

Underwriters in Taiwan have to purchase 10-25% of shares offered in initial public offerings (IPOs) for their own accounts. We present a signalling model showing that the underwriter retention rate can serve as a signal of firm value to investors because underwriters are investors as well. This...