We reconsider the role of asymmetric information in motivating the issuance of callable bonds. The previous literature has emphasized a possibility that a call feature serves as a signal of issuer quality. We demonstrate that asymmetric information can motivate use of a call even when this...

Several researchers find that growth firms outperform value firms for some periods (e.g., Asness et al., 2000). These findings led investors to doubt value strategy in their investments. Reworking the Euler equation shows that time-varying risk is responsible for the reverting risk and return...

This study investigates the performance of firms with extremely high levels of market to sales value (“concept stocks”). To many observers, these stocks appear overvalued. However, proponents argue that because of their unique characteristics, traditional pricing models fail to value these...