In this paper, we examine IPO price behavior in the medium-term aftermarket. Our baseline is the first-day closing price - a price at which ordinary investors can buy the IPO stock. We examine the cumulative market-adjusted return over a six-month period and record whether and when it breaches a...

The housing market crash in 2007 followed by a banking crisis and deep recession led to many underwater mortgages and a large shadow inventory of unsold properties. An innovative mechanism that may be playing a role in lowering inventories is the emergence of rent-to-own (RTO) housing contracts....

Due to tougher lending standards, Rent-to-Own (RTO) contracts are getting popular. In a RTO contract, a tenant signs a lease with the option to buy a house at a predetermined purchase price. That is, the tenant receives a call option. RTO contracts allow potential financially constrained...

We document significant momentum effects in the high-tech IPO aftermarket beyond the initial (underpricing) run-up. Cumulative market-adjusted returns (CMARs) reveal a striking pattern. A local peak of just over 10 percent is reached around 20 trading days post-IPO coinciding with the expiry of...

A number of theoretical models, loosely characterized under the rubric of behavioral finance, suggest that price convergence to value is far from instantaneous and possibly involves interplay between noise and informed traders. The divergence of market price from fundamental value is more likely...

When correcting for autocorrelation, most econometrics texts suggest using a quasi-differencing procedure. A number of issues arise. First, it is found that popular two-step procedures do not sufficiently correct for autocorrelation in certain instances. Second, while it is true that most...