This paper examines the security market response to the announcement of sell-side analysts' decisions to initiate coverage of a firm. We examine the market reaction to the initiation announcement, and the accompanying investment recommendation, by disaggregating our sample based on existing...

Although long-lived tangible assets are critical for business operations and create value for investors, prior literature has not examined how the risks pertaining to these assets affect auditors’ pricing and reporting decisions. Indeed, the PCAOB (2017) has expressed concerns about persistent...

We examine seasoned offerings of common stock and stock-warrant units to test predictions of recent theories of security issuance based on sequential financing and information signaling. We specify and test a simultaneous equations model involving the choice of shares versus stock-warrant units...

We provide evidence directly linking spinoff announcement returns to the pre-spinoff conduct of internal capital markets. Firms' internal capital markets may enhance value by channeling capital to divisions with superior investment opportunities (high Tobin's q), and/or by starving divisions...

We appeal to the literature on optimal timing of capital investment to identify a metric that permits a new test of the sequential financing motive for financing with convertible securities. We argue that firms that should execute capital investment with little delay should design convertibles...