This paper studies the information advantage of forthcoming patents. We find that forthcoming patents can have a significant influence on credit ratings. We also find that forthcoming patents facilitate a reduction of the cost of borrowing after controlling for the credit ratings. Our findings...

We examine price pressure in a setting where trades occur because of regulations and when information effects are absent. Our study of fallen angel bond sales by insurance companies shows that price pressure is negligible, if not non-existent. We attribute our results to the fact that the trades...

We examine aggregate volume of straight debt IPOs issued by nonfinancial firms over an extended period of 1970 to 2010. We find that aggregate debt IPO activities display wave patterns. Similar to equity IPOs, both the number and total proceeds of debt IPOs vary substantially over time. We...

This paper examines underpricing of IPOs and seasoned offerings in the corporate bond market. We investigate whether underpricing represents a solution to an information problem or a liquidity problem. We find that underpricing occurs with both IPOs and seasoned offering and is highest among...

This study addresses the question of the effectiveness of private placements in mitigating the information asymmetry problem faced by IPO firms, and their impacts on issuing costs, both underpricing and underwriting spreads, of IPOs. We examine the underpricing of initial public offerings by...

This paper examines the role of reputation in the corporate bond market as a substitute for underpricing. We find that underpricing occurs with seasoned debt issuers as well as debt IPOs and it is highest among riskier, unknown firms. In addition, firms with no prior banking elationship have...

This paper examines underpricing of IPOs and seasoned offerings in the corporate bond market. We investigate whether underpricing represents a solution to an information problem or a liquidity problem. We find that underpricing occurs with both IPOs and seasoned offering and is highest among...

Using computational linguistics, we examine whether risk factor disclosure in the offering prospectus provides unique information in the pricing of initial public offerings of bonds. Both credit ratings and initial yields are related to risks that discuss the financial condition of the firm, its...