Previous evidence has documented that equity issuers underperform in the long-run. One possible explanation is that investors have overoptimistic expectations regarding future earnings and the underperformance occurs as these expectations are corrected over time. Our central focus is to test...

The poor stock price performance of firms that raise capital through seasoned equity offerings is one of the recent puzzles in financial literature. In this study we investigate whether pre-issue earnings management can explain these results for rights issues in Spain. Consistent with this...

Interest rate risk represents one of the key forms of financial risk faced by banks. It has given rise to an extensive body of research, mainly focused on the estimation of sensitivity of bank stock returns to changes in interest rates. However, the analysis of the sources of bank interest rate...

This paper analyses the symmetry of daily returns in the Madrid stock market and in the exchange rates of the peseta against the US dollar , the Japanese yen and the German mark. Given the non-normality of the returns, the problem is tackled under alternative distributions, and a procedure is...