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Pedersen, Lasse Heje - 2004

overshooting and a reduced liquidation value for the distressed trader. Hence, the market is illiquid when liquidity is most needed …

Persistent link: https://www.econbiz.de/10012785459

Transaction Costs in Dealer Markets : Evidence from the London Stock Exchange

Reiss, Peter C. - 2009

This paper describes regularities in the intraday spreads and prices quoted by dealers on the London Stock Exchange. It develops a measure of spread-related transaction costs, one that recognizes dealers' willingness to price trades within their quoted spreads. This measure of transaction costs...

Persistent link: https://www.econbiz.de/10013155968

Pledgeability, Industry Liquidity, and Financing Cycles

Diamond, Douglas W. - 2017

industry liquidity. The market allows firms take on more debt when they anticipate higher future liquidity. However, both high … anticipated liquidity and the resulting high debt limit their incentives to enhance pledgeability. This has prolonged adverse … effects in a downturn. Because these effects are hard to contract upon, higher anticipated liquidity can also reduce a firm …

Persistent link: https://www.econbiz.de/10012965425

One Day in June, 1994 : A Study of the Working of Reuters 2000-2 Electronic Foreign Exchange Trading System

Goodhart, Charles; Ito, Takatoshi; Payne, Richard - 2021

The paper utilized foreign exchange data (bid, ask and transaction prices and quantities) collected from the screen of the electronic broking system (Reuter D2000-2) on June 16, 1993. The bid and ask quotes, which are `firm' in this data set, are compared with the Reuters FXFX page, which...

Persistent link: https://www.econbiz.de/10013221545

Counterparty Risk and the Establishment of the New York Stock Exchange Clearinghouse

Bernstein, Asaf - 2014

Heightened counterparty risk during the recent financial crisis has raised questions about the role clearinghouses play in global financial stability. Empirical identification of the effect of centralized clearing on counterparty risk is challenging because of the co-incidence of macro-economic...

Persistent link: https://www.econbiz.de/10013047773

Are Analyst Trade Ideas Valuable?

Birru, Justin - 2019

Using a novel database, we show that the stock-price impact of analyst trade ideas is at least as large as the impact of stock recommendation, target price, and earnings forecast changes, and that investors following trade ideas can earn significant abnormal returns. Trade ideas triggered by...

Persistent link: https://www.econbiz.de/10012866708

Does Stock Market Listing Impact Investment in Japan?

French, Joseph J. - 2019

investment. We also document a positive association between stock liquidity and investment for listed firms. Taken together, our …

Persistent link: https://www.econbiz.de/10012858798

Governance and Stakeholders

Mehrotra, Vikas C. - 2017

Economic models routinely assume firms maximize shareholder wealth; however common law legal systems only require that officers and directors pursue the interests of the corporation, leaving this ill-defined. Economic arguments for shareholder wealth maximization derived from shareholders'...

Persistent link: https://www.econbiz.de/10012954931

A Clinical Exploration of Value Creation and Destruction in Acquisitions : Organizational Design, Incentives, and Internal Capital Markets

Kaplan, Steven N.; Mitchell, Mark; Wruck, Karen H. - 2021

This paper presents clinically-based studies of two acquisitions that received very different stock market reactions at announcement one positive and one negative. Despite the differing market reactions, we find that ultimately neither acquisition created value overall. In exploring the reasons...

Persistent link: https://www.econbiz.de/10013226921

On the Timing and Pricing of Dividends

van Binsbergen, Jules H. - 2010

We recover prices of dividend strips on the aggregate stock market using data from derivatives markets. The price of a k-year dividend strip is the present value of the dividend paid in k years. The value of the stock market is the sum of all dividend strip prices across maturities. We study the...

Persistent link: https://www.econbiz.de/10013137025