American Depository Receipts (ADRs) represent shares of foreign firms that are issued and traded in the U.S. Since an ADR and its underlying shares represent ownership interest of the same firm, they should be perfect substitutes in a perfect market. However, market imperfections such as...

This paper examines time-series patterns of external financing decisions and shows that publicly traded U.S, firms fund a much larger proportion of their financing deficit with external equity when the cost of equity capital is low. The historical values of the cost of equity capital have...

En este documento analizamos la correlación lineal y la dependencia de colas entre los fondos de cobertura denominados market neutral y la cartera de mercado condicionado en el ciclo económico. Documentamos que la baja correlación entre estos fondos y el índice S&P 500 resulta de la...