This article examines the informational quality of implied volatility in forecasting future realized volatility using daily S&P 500 and S&P 100 index option prices from 2000 to 2006. In contrast to many previous studies, we find that implied volatility is an unbiased and efficient estimator of...

Our study examines the nature of industrial and global diversification for a sample of more than 12 000 firms across 35 emerging and developed countries during the period 1991-2006. Consistent with previous studies, we find that industrial diversification, either alone or combined with global...

This study examines how changes in block ownership effects firm value and performance for a sample of US firms over the period 1993-2001. We find that the creation of a new block has a significant impact on shareholder wealth while block elimination does not. The wealth effect is most pronounced...

Using a vector autoregressive (VAR) approach, the dynamic interactions and causal relationships among volatility, open interest, trading volume and arbitrage opportunities in the S&P 500 index futures market is examined. It is found that increased volatility lowers pricing error. This implies...

A sample of cash-only acquisitions of Nasdaq targets during 1973-1999 is examined. It is found that the mean (median) percentage premia declines from 74% (65%) during the 1970s to 47% (42%) in the 1990s. Consistent with recent research on the value reduction associated with diversification, it...

Contrary to the concerns of the Council of Institutional Investors and other shareholder activists, it is reported that the incidence of multiple board memberships appointments by corporate directors is low, with only 4% of the sample holding three or more seats. It is found that directors in...

The changing nature of initial public offering (IPO) underpricing is examined using a sample of 513 IPOs launched in the UK from 1993 to 2001. It is found that the mean UK underpricing is initially less than that in the USA, reverses itself in the mid-1990s, returns to a lower level during the...

Through a comparison of serial and once bankrupt firms over the period 1970-1996, those factors that lead to a successful reorganization are examined. It is found that serial bankrupt firms generally fail to restructure their top management around the time of their initial reorganization while...

Studies by LaPorta et al. (2000, 2002) show that the strong protection of investor rights encourage the development of capital markets and are associated with higher levels of firm valuation as measured by Tobin's Q. Related research finds that well-developed capital markets produce higher rates...