In this paper we examine the disclosure on the IPO prospectus that refers to the firm's intention to pursue an active acquisition strategy as one of the reasons for going public (disclosers). Based on research showing that properly evaluated M&As are more successful, we examine whether the...

In this paper we exploit the choice allowed by IFRS regarding the presentation of interest payments on the cash flow statement to answer two related questions: First, whether the classification choice is explained by firm reporting incentives and second, whether it is value relevant. Using a UK...

This paper investigates whether conflicts of interest exist between the research and proprietary trading departments of full-service investment banks. Using a data set of 11,590 analyst stock recommendations over the period 1999-2007, we find that in the period preceding the Global Research...

We use the estimate of an IPO's intrinsic value derived from its initial price range and the degree to which the overallotment option is exercised to decompose IPO underpricing into a Market Inefficiency and an Underwriter Bias component. The former reflects the difference between the closing...

We document a significant increase in the reliability of target prices following the implementation of SRO-rulings, which were designed to mitigate sell-side analyst conflicts of interest. We test whether the increase is associated with the implementation of the rules’ provisions (the...