In this paper we examine the relation between equity mispricing and arbitrage risk and find that stocks with high arbitrage risk have higher estimated mispricing than stocks with low arbitrage risk. These results are not limited to high book-to-market or small capitalization stocks, and they are...

In this paper, we examine the relation between stock returns and analysts' heterogeneous expectations. We find that stock returns are positively associated with divergence of opinion. Our evidence provides no support for Miller's (1977) overvaluation hypothesis, which predicts lower (higher)...

The returns to multinationality are estimated as the value of “operating flexibility.” Empirical measures of the return of multinationality require a precise specification of the extensiveness of the MNC's transnational network to measure the degree of multinationality. This precise,...

This study examines the relationship between market valuation and the geographic scope of U.S. multinational corporations' (MNCs) foreign operations by focusing on the importance of the location of MNC operations. The location factors utilized here capture the degree of segmentation/integration...

This paper provides further evidence on the link between the firm's performance and the distribution of the common shares between insiders, blockholders and institutions. We endogenize the functional form of the market value--common equity structure relationship by using a switching regression...

This paper examines the impact of operational hedges of US multinational corporations (MNCs) on their exchange rate exposure. The two important contributions of this study are: First, it documents the importance of operational hedges as significant determinants of exchange rate risk, as measured...