The aim of this study is to analyze how investors assess the innovative endeavors of companies. The evidence from this research indicates that uncertainty avoidance has a detrimental effect on the value of R&D investments made by non-high-technology firms, but has no significant impact on the...

This study examines the impact of policy uncertainty on the substitution between external financing and internal funds using an international data set for 22 countries during the period 2000-2019. I find that the sensitivity of external financing (measured by the sum of equity and debt...

We estimate the effect of macroprudential policies on firm value to evaluate potential policy trade-offs as the policies restrict the firms' access to credit during economic booms while protecting them from future financial crises. To empirically investigate this question, we use a comprehensive...

This paper examines the differential impact of leverage on investment across firms with varying levels of growth opportunities in both advanced and developing countries. Contradictory research findings on the strength of this relationship for firms with low or high growth opportunities are...

Our study investigates the true valuation motive for increasing share repurchases. To do so, we analyze the contemporaneous trading dynamics between short sellers, institutional investors and the firm itself around the actual share repurchases. We regress quarterly changes in share repurchases...

This study investigates the impact of dark equity trading regulatory restrictions on the options market liquidity in Canada. In late 2012, the Canadian market regulator introduced a new dark trading regulation, referred to as the “Minimum Price Improvement” (“MPI”). It requires dark...

This study examines the dynamic relationships among foreign investors' trading behavior, stock returns, and sovereign CDS spread changes in Korea. Our findings show that the stock return (CDS spread change) rises (declines) in response to shocks to net foreign flows into the stock market on the...