Within the context of fundamentally efficient markets, this paper demonstrates analytically how short sellers can put non-transitory downward pressure on the stock market prices and intrinsic values of companies that need to raise external capital because of insufficient internal liquidity. The...

This research investigates the existence of segmentation in the market for fixedincome securities. Evidence is found of higher yield spreads being required for non-distressed bonds making larger contributions to the risk of pure debt portfolios over the 2003–2011 period. Abnormal returns...

This research analyzes a theory of merger financing that indicates that the terms of payment for target shares should be used to optimally influence the postmerger liquidity and capital structure of the combined firm. In an empirical test on a large sample of mergers, the stock market reaction...