Showing 1 - 10 of 22
This paper examines three theories of IPO underpricing, using data from Israel where the allocations to subscribers are equally prorated and publicly known. Rock s (1986) theory of adverse selection is supported: subscribers receive greater allocations in overpriced IPOs. And, while the average...
Persistent link: https://www.econbiz.de/10012765826
This paper studies the association between the market's expectations of Saddam Hussein's fall from power, as reflected in quot;Saddam contractquot; prices, and stock prices, oil prices and exchange rates. During the war, a rise in the probability of Saddam's fall, which also indicated a speedy...
Persistent link: https://www.econbiz.de/10012765905
This paper examines three theories of IPO underpricing, using data from Israel where the allocations to subscribers are equally prorated and publicly known. Rock s (1986) theory of adverse selection is supported: subscribers receive greater allocations in overpriced IPOs. And, while the average...
Persistent link: https://www.econbiz.de/10012765919
We provide an economic basis for permitting freeze outs of non-tendering shareholdersfollowing successful takeovers. We describe a specific freeze out mechanism based on easily verifiable information that induces desirable efficiency and welfare properties in models of both corporations with...
Persistent link: https://www.econbiz.de/10012765933
We analyze the link between creditor rights and firms' investment policies, proposing that stronger creditor rights in bankruptcy reduce corporate risk-taking. In cross-country analysis, we find that stronger creditor rights induce greater propensity of firms to engage in diversifying...
Persistent link: https://www.econbiz.de/10012765947
We propose an explanation for the quot;disappearing dividendquot; phenomenon: the decline in the information content of dividend announcements. This reduces the propensity of firms to pay or increase dividends, since dividends are costly. The decline in the information content of dividend, is...
Persistent link: https://www.econbiz.de/10012768426
New tests are presented on the effects of stock illiquidity on stock return. Over time, expected market illiquidity positively affects ex ante stock excess return (usually called acirc;not;Srisk premiumacirc;not;?). This complements the positive cross-sectional return-illiquidity relationship. The...
Persistent link: https://www.econbiz.de/10012768439
This paper studies the association between the market s expectations of Saddam Hussein s fall from power, reflected in quot;Saddam contractquot; prices, and stock prices, oil prices and exchange rates. During the war, a rise in the probability of Saddam s fall, which also indicated a speedy end...
Persistent link: https://www.econbiz.de/10012768507
This paper studies the association between the market s expectations of Saddam Hussein s fall from power, reflected in quot;Saddam conactquot; prices, and stock prices, oil prices and exchange rates. During the war, a rise in the probability of Saddam s fall, which also indicated a speedy end to...
Persistent link: https://www.econbiz.de/10012768606
This paper examines the effects of cross-border bank mergers on the risk and (abnormal) returns of acquiring banks. We find that overall, the acquirers risk neither increases nor decreases. In particular, on average neither their total risk nor their systematic risk falls relative to banks in...
Persistent link: https://www.econbiz.de/10012768622