Showing 1 - 10 of 13
This study examines the performance of industry consolidating IPOs by using a sample of 58 firms that conducted a roll-up IPO over the 1994-1999 period and 55 build-up IPOs that went public between 1983 and 1999. Results indicate that the long-run stock price performance of roll-up IPOs...
Persistent link: https://www.econbiz.de/10009430302
In the first essay, I test the predictions of the market timing theory of capital structure on a comprehensive sample of firms that issued debt and equity during the period January 1974-December 2001. I first categorize firms as likely and unlikely market timers based on their ability to time...
Persistent link: https://www.econbiz.de/10009430308
In Part I we develop a model of entry in which an entrant with private information about its production cost and cost of entry has an opportunity to trade in the stock of a single incumbent before entry. We assume an efficient stock market populated by risk-neutral liquidity sellers who randomly...
Persistent link: https://www.econbiz.de/10009430335
In this paper, we provide evidence that trading driven by investors' behavioral biases contributes to stock return momentum. In particular, we focus on two types of irrational trading, momentum trading and confidence-influenced trading, which could be driven by psychological biases introduced by...
Persistent link: https://www.econbiz.de/10009430340
This study investigates empirically the factors that determine whether firms borrow from banks and other finance companies versus issuing bonds for sale to the public. I analyze 1,560 new borrowings from banks, non-bank private lenders, and the public debt market by 1,480 U.S. public firms over...
Persistent link: https://www.econbiz.de/10009430455
I conduct an examination of the cross-sectional and time-series evidence on the decision to reduce dividends over the 40-year period of 1965-2004. As my core analysis, I empirically investigate whether the decision to cut dividends is caused by the exhaustion of corporate cash reserves and the...
Persistent link: https://www.econbiz.de/10009430462
An investment into an ARM-backed security requires the estimation of its theoretical, "fair", value, which can be determined using a stochastic valuation model and a well-specified prepayment function. In this study, we develop a general framework for the valuation of ARM-backed securities,...
Persistent link: https://www.econbiz.de/10009430503
This paper develops an empirical framework that allows the degree of out-of-sample predictability in any specific dataset to serve as conditioning information in portfolio choice and market timing decisions. The forecasting model is developed from a real-time investment perspective by allowing...
Persistent link: https://www.econbiz.de/10009430524
Leverage-reducing exchange offers are consistently associated with a reduction in shareholder wealth. This study examines the motivations behind these exchange offers in light of their negative impact on shareholders' wealth by characterizing a sample of 151 firms conducting leverage-decreasing...
Persistent link: https://www.econbiz.de/10009430662
The purpose of the present study is to investigate whether information can partly explain the price increases associated with the S&P 500 Index additions. We examine the earnings performance of newly added firms for the period after additions. Firms newly added to the S&P Index do not exhibit an...
Persistent link: https://www.econbiz.de/10009430770