Market efficiency improves for stocks that are listed on the newly established single stock futures (SSF) exchanges. After identifying information associated with large price changes, we show that the number of unexplained large stock returns decreases for SSF firms in comparison to the pre-SSF...

We provide direct empirical evidence that stocks' overvaluation is an important motive for firms to make acquisitions with their stocks, supporting the market driven acquisition theory (Shleifer and Vishny, 2002). Overvaluation increases the probability of firms becoming acquirers and the...

This paper examines international differences in analyst forecast properties using 42 countries. Properties of the forecasts, specifically dispersion and error, are hypothesized to be a function of country-specific, firm-specific, and discretionary components, the latter component including...

This study seeks to determine the relation between stock returns and analyst forecast properties, specifically, the dispersion and error of annual earnings forecasts. The results of portfolio sorts, Fama-MacBeth cross-sectional regression models, and Fama and French (1993) factor models indicate...

Conrail, nationalized in 1976 and privatized in 1987, was the most significant nationalization and privatization by the US government in recent years. It provides a specific example to examine the financial impacts of politics. We show that at key points in the nationalized and privatized time...

On November 8, 2002, two new exchanges, One Chicago and NQLX, were opened to trade single stock futures, the newest important derivatives in U.S. We study how these exchanges choose the products to be listed. We find their selection process is consistent with the objective of maximizing the...

Overall, we find that CEOs appointed from inside the firms deliver greater cumulative and more persistent performance than those hired from outside the firms. We attribute this to insiders having a home court advantage, from years of accumulated firm-specific experience. This advantage is rarely...

Financing of and investing in Ramp;D are prone to risks of appropriation by competitors, information asymmetry, and agency problems. Although legal protection of intellectual property (IP) rights at the national level is necessary to encourage investing in Ramp;D, we show that the effective...