We examine changes in managers' investment in the firm around leveraged buyouts and find agency costs counter to those described in extant literature. In majority of deals during 1997-2008, managers divested a portion of their pre-LBO shareholdings while maintaining an ownership stake in the...

Where can one systematically find research ideas? I propose a scheme to classify and broadly generalize the sources of inspiration for research topics, with emphasis on corporate finance. In the process, I propose 100 new research topics awaiting the brave and persistent

We investigate the role of affect on asset prices through a natural experiment inherent in the designation of dual-class IPOs and its impact on IPO underpricing. We show that issuers of dual-class IPOs could and do take consumer psychology into account and manage to sell inferior securities at...

We examine whether social media criticisms posted by small investors can predict subsequent firm acquisition decisions. Specifically, we use textual analysis to examine the Internet stock message board postings of 303 value-reducing acquisition attempts. Our empirical evidence shows that small...

On November 8, 2002, two new exchanges, OneChicago and NQLX, began trading single stock futures (SSFs) in U.S. We study how these exchanges choose the listed products, and we compare the trading volumes on the two exchanges. The selection process is consistent with the objective of maximizing...

This paper provides a link that integrates public finance and corporate finance. We analyze a world in which costly tax avoidance or evasion could occur. The class of solutions considered here involve changes in the tax system that economize on the deadweight costs of avoiding taxes and...