We use transactional level data on institutional trading around CEO turnovers to analyze the information flows and settings that allow information production and trading to act as an effective corporate governance mechanism. We find that institutional trading prior to a CEO turnover is...

Models of seasoned equity offerings (SEOs) such as Myers and Majluf (1984) assume that all investors in the economy pay immediate attention to SEO announcements and the pricing of SEOs. In this paper, we analyze, theoretically and empirically, the implications of only a fraction of investors in...

We analyze how employees' online ratings of firms' affect their corporate financing and investment policies. We hypothesize that, while employees are unlikely to have access to inside information, their ratings, being driven by their day-to-day interactions with their employers, are likely to be...

We analyze the relation between the geographical locations of the institutions investing in IPO firms and IPO firm outcomes. Consistent with an information sharing hypothesis, we find that an increase in the geographical dispersion of the institutions investing in IPO firms is associated with...

Using a hand-collected data set of private firm acquisitions and IPOs, this paper develops the first empirical analysis in the literature of the "IPO valuation premium puzzle," which refers to a situation where many private firms choose to be acquired rather than to go public at higher...

The U.S. equity markets have experienced a remarkable decline in IPOs since 2000, both in terms of smaller IPO volume and entrepreneurial firms' greater tendency to exit through acquisitions rather than IPOs. Using proprietary U.S. Census data on private firms, we conduct a comprehensive...

We analyze a firm's choice between dual class and single class share structures, either at IPO or subsequently, prior to an SEO. We consider an entrepreneur (quot;incumbentquot;) who obtains both security benefits and private benefits of control, and who wishes to sell equity to outsiders to...

We analyze a firm's choice between dual class and single class share structures, either at IPO or subsequently, prior to an SEO. We consider an entrepreneur (incumbent) who obtains both security benefits and private benefits of control, and who wishes to sell equity to outsiders to raise...

Using a European private firm sample, we conduct a dynamic empirical analysis of private firm exit choice, previously modeled as a one-time IPO versus acquisition decision. Going public may yield firms a valuation premium (over a direct acquisition) through a post-IPO acquisition, but may also...

We document a negative causal relationship between changes in the analyst coverage of buying firms and their use of trade credit, thus establishing an "information production" hypothesis of trade credit usage. We show that firms use trade credit to a greater extent when the extent of asymmetric...