Corporate finance decisions are not made at random, but are usually deliberate decisions by firms or their managers to self-select into their preferred choices. This chapter reviews econometric models of self-selection. The review is organized into two parts. The first part reviews econometric...

We examine the pricing of initial public offering (IPO) and seasoned equity offering (SEO) firms using a stochastic frontier methodology. The stochastic frontier framework models the difference between the maximum possible value of the firm and its actual market capitalization at the time of the...

In this study we examine whether managers deliberately use accruals to convey information regarding firm future profitability. We use contemporaneous earnings and dividend announcement data as our research setting, as this setting reduces the possibility of opportunistic income smoothing by...

This paper surveys the theoretical and empirical literature on the economic consequences of financial reporting and disclosure regulation. We integrate theoretical and empirical studies from accounting, economics, finance and law in order to contribute to the cross-fertilization of these fields....

There is a growing literature on the differential impact of soft vs. hard information on organizational structure and behavior. Most empirical papers on soft information study the financial intermediation industry. This is one of the few papers that measure the impact of soft information in a...

This paper comprehensively examines whether the presence of interlocked directors on a board is associated with weak governance. For a sample of 3,566 firm-years over the 2001-2003 time period, we find that firms with lower industry-adjusted firm performance are more likely to have interlocked...

We extend our prior work on how both supply (including the emergence of OTC equity derivatives and growth in share lending) and demand (including the growth of hedge funds) factors now facilitate the large-scale, low-cost decoupling of shareholder voting rights from shareholder economic...

This paper explores the efficiency with which value-relevant information disclosed by firms makes its way into stock prices over the period 1994-2007. Specifically, we explore whether investors incorporate disclosures related to employee stock option grants into their valuations given that these...

Until October 2004 corporate insiders in Germany were required to report trades in the shares of their firm without delay. In practice substantial reporting delays were common. We show that the delays are systematically related to the characteristics of the firm. Delays are longer in widely-held...

We study the announcement effects and their determinants of convertible debt issues in the Canadian market in order to identify issuer motives. The average wealth effect for the three-day event window around the announcement of convertible bonds between 1991 and 2004 is a significantly negative...