We document a significantly negative effect of the change in a firm's leverage ratio on its stock prices. This effect cannot be explained by popular asset pricing factors or firm characteristics. We find that the negative effect is stronger for firms with limited debt capacity. Moreover, firms...

We document a significant, negative effect of quarterly change in a firm's leverage ratio on its monthly stock returns for the next quarter. This effect cannot be explained by popular asset pricing factors and is robust after controlling for a number of firm characteristics. We find that the...

Many finance theories predict that the capital structure affects firm value, which implies that the changes in leverage have an impact on stock returns. Most of the existing literature however has been focusing on the determinants of the capital structure. Using a sample of U.S. public firms...

We show that the positive relation between institutional ownership and future stock returns documented in Gompers and Metrick () is driven by short-term institutions. Furthermore, short-term institutions' trading forecasts future stock returns. This predictability does not reverse in the long...

We show that the positive relation between institutional ownership and future stock returns documented in Gompers and Metrick (2001) is driven by short-term institutions. Furthermore, short-term institutions' trading forecasts future stock returns. This predictability does not reverse in the...

The marine industry plays an important role in promoting the development of the blue economic zone, and the study of the operating performance of marine industry is of important practical significance. Using DEA method, this article measures the operating performance of marine industry in the...

This paper is the first study to examine the effectiveness of the Shanghai Fuel Oil Futures Contract (SHF) in risk reduction on the Chinese energy oil market. We find that the SHF contract can help investors reduce risk by approximately 45 %, lower than empirical evidence in developed markets,...

Our results suggest that the benefit policy change did not impact life-saving procedures or reduce patients’ burden of disease among AMI patients. The effect of ‘provider gaming’ was the strongest for the high reimbursement group as a result of the global budget cap pressure. The current...