We investigate firms' liquidity practices around seasoned equity offerings (SEOs). We broadly classify issuers on the basis of whether the firm belongs to an industry deemed to be financially constrained or unconstrained. We find that constrained-industry issuers tend to save more cash to...

α (“Alpha”) has symbolic importance on the investments side of finance. That is, a fundamental pillar of modern finance theory is the risk-return relation, and traditionally alpha is taken to represent the degree of “mispricing” in asset returns. But, such an interpretation is not...

This study investigates US industry-based price response to domestic natural disasters over the period 1960-2015. Using an event study methodology, we estimate pre, during and post disaster impacts and document a slower response in pre-disaster period than in post-disaster period. We further...

This study examines the impact of cash holdings on firm value before and during the 2008 financial crisis. In answering this question, our analysis assesses the conditioning effect of financial constraints and corporate governance. In our core finding we show that the equity market places a...

This study examines the impact of cash holdings on firm value before and during the 2008 financial crisis. In answering this question, our analysis assesses the conditioning effect of financial constraints and corporate governance. In our core finding we show that the equity market places a...

Fantasy Pitching V follows in the footsteps of four earlier fantasy pitching exercises: Faff, Ali, et al. (2016); Faff, Wallin et al. (2016); Faff, Carrick, et al (2017) & Faff, Baladi, et al (2017). Like all prior versions, the current paper challenges teams of novice researchers to use the...

The current paper outlines two applications of ‘Pitching Research' (Faff, 2015 & 2017a) designed to help readers and researchers better understand and describe academic literature. ‘Reverse Engineering' is a concept explored by previous student scholars at The University of Queensland (Faff...

We investigate the role of retail traders in comovement in return and liquidity. We use the Robinhood data to compute a proxy of retail trading activity. Our results show that retail trading activity is associated with a decrease in both comovements in return and liquidity. The effects on...

We investigate the role of retail traders in comovement in return and liquidity. We use the Robinhood data to compute a proxy of retail trading activity. Results show that retail trading activity is associated with a decrease in both comovements in return and liquidity. The effects on comovement...

We propose a new 3-step resampling approach to forecast portfolio tail risk conditional on the economic state. The approach first predicts economic states using a set of macroeconomic and financial variables. We then forecast the joint distribution of multiple assets in the portfolio according...