This study documents a link between the market's reaction to a new issue announcement and the issuer's motivation for both debt and equity issues. Negative and significant price reactions occur for outstanding debt and equity when the issuer faces an unexpected cash flow shortfall. Insignificant...

"We investigate the roles of information asymmetry and governance in the wealth effects associated with passage of the Sarbanes-Oxley Act (SOX) for a sample of 1,158 firms. For events suggesting adoption of stringent reform legislation, we find more (less) favorable abnormal returns (ARs) for...

Tracking stock for a unit of a firm presumably allows the market to value and monitor that unit independently of the rest of the firm.Announcement of the creation of tracking stock elicits an abnormal share price response of 2.17%on average over a two-day period.The share price response at the...

Since foreign high-tech firms exhibit a high level of asymmetric information, there is much investor skepticism surrounding the potential benefits to US firms that acquire them. However, the investor perception may be more favorable when the acquisitions involve more visible targets and advice...