A growing literature is using stock return synchronicity, or the R2 from a market model regression,as an inverse measure of the extent to which firm-specific information is reflected in stock prices. Inthis paper, we argue that the relationship between R2 and the informativeness of stock prices...

Credit risk transition probabilities between aggregate portfolio classes constitute a very useful tool when individual transition data are not available. Jones (2005) estimates Markovian Credit Transition Matrices using an adjusted least squares method. Given the arguments of Judge and Takayama...

In this paper, we document how European companies can use financial tunnelling to the disadvantageof minority shareholders, despite improved legislation directed at eliminating such activities. In fourcase studies, two German and two Italian, we document how newly established corporate...