This study investigates the performance of firms with extremely high levels of market to sales value (“concept stocks”). To many observers, these stocks appear overvalued. However, proponents argue that because of their unique characteristics, traditional pricing models fail to value these...

This study investigates arbitrage activities and their impact on acquisitions. The literature contains arguments for both passive and active roles of arbitrageurs during the takeover process. Larcker and Lys (1987) suggest that arbitrageurs are passive, having superior ability to predict offer...

We analyze the history and performance of concept stocks, defined as stocks whose current valuation appears out of line with tradition valuation metrics. Although the obvious current example is Internet stocks, concept stocks characterize every period. Popular concept stocks of earlier periods...

This article surveys the theoretical and empirical studies on share repurchases. Share repurchases have surpassed cash dividends and become the dominant form of corporate payouts since the last decade. This study provides a brief description of five major types of share repurchases and considers...

This study examines short selling in stocks of firms that reveal partial earnings-related information prior to their eventual earnings announcements (EA). By decomposing short selling into two components where the first corresponds to the final partial earnings disclosure and the second captures...

This paper investigates whether corporate payout policy is associated with insiders' share holdings and their tax preferences. We find that insider ownership and the implied tax liabilities are positively related to firms' propensity to employ share repurchases. Firms with higher levels of or...

Recent research on blockholders focuses on activist hedge funds and documents positive stock but negative bond returns. This study investigates the role of blockholder heterogeneity on security market effects and target firm follow-on activities across three important dimensions: identity,...

This study examines the dynamics between insider trades and analyst recommendations and evaluates the joint and relative informativeness of these two activities. We show that analyst recommendations significantly affect subsequent insider trading, but not vice versa. Surprisingly, insiders in...