This study examines transactions in stocks during the thirty trading days prior to earnings announcements. Using two methodologies, we find evidence of informed trading for initiators of large transactions (presumably institutions) but not for initiators of small transactions (presumably...

We document that firms making straight and convertible debt offerings during 1975-1989 substantially underperformed samples of non-issuing control firms matched on size and book-to-market ratio. This evidence of long-run underperformance following debt offerings is not consistent with the...

We examine the long-run performance of the common stock of firms following calls of both straight and convertible debt from 1945 to 1995. Using a sample of 718 calls of straight debt, we find an average abnormal return in the five years following the call of between 0.16% and 0.34% per month,...