In this study, we examine the evolution of the arbitrage spread between 1990 and 2007 and find that since 2002 the arbitrage spread has declined by over 400 basis points (quot;bpsquot;). This decline is both economically and statistically significant. The decline in arbitrage spread corresponds...

The article examines the extent to which economic incentives may have improved for appraisal arbitrageurs in recent years, which could help explain the observed increase in appraisal activity. We investigate three specific issues. First, we review the economic implications of allowing...

Two Delaware appraisal related developments occurred in the summer of 2007. These developments have made it easier for target shareholders to seek appraisal, thus strengthening Delaware appraisal rights. Recent studies have documented empirical patterns that associate stronger appraisal rights...

We analyze the extent to which promoters of firms listed on the Bombay Stock Exchange are using rights issues to circumvent regulatory provisions related to creeping acquisitions. We find that promoters use rights issues that do not have specific objectives for purposes of realizing an increase...

In securities fraud class action litigations, trading models are widely used to determine aggregate damages for the purpose of negotiating settlements. To estimate damages, trading models require assumptions on the number of shares available for trade (i.e., the float) and the number of...

The study analyses the effect of statutory indemnity on securities class action settlement amounts. This is the first study that we are aware of to focus specifically on the association between directors' and officers' indemnification and securities class action settlement amounts. Corporate...

We propose a methodology that combines simulation and lattice methods to value American Parisian knock-in and knock-out options. Our methodology uses the observation that once the Parisian condition is met, the exercise strategy of a knock-in option is identical to that of a plain vanilla...