The adjustment of prices after the arrival of new information is one of the most debated issues in finance. We use post-IPO market to examine this subject. The unique setting of immediate aftermarket allows us to assess the speed of price adjustment after the trading has just begun as investors...

This paper examines the propensity of firms to comove in investment decisions. Although stock return comovement and herding among investors received considerable attention in existing work, little is known about correlated investment behavior of firms. After controlling for the similarity of...

We document a robust cross-sectional positive association across industries between a measure of the economic efficiency of corporate investment and the magnitude of firm-specific variation in stock returns. This finding is interesting for two reasons, neither of which is a priori obvious....

Commenting on Jones and Khanna, we suggest that international business (IB) needs simultaneously maturing theory and on-going rigorous empirical work. We advocate careful data collection and develop solid theory based on the rich empirical information. The difficulty in the process is the...

Chinese share prices rose sharply on the Politburo's Dec. 4th, 2012, announcement of its Eight-point Regulation, an uncharacteristically detailed and concrete Party policy, initiating an extensive anti-corruption campaign and announced surprisingly soon after a change in leadership. The reaction...

China is now the world's largest destination of FDI, despite assessments highlighting its institutional deficiencies. But this FDI inflow corresponds closely to predicted FDI flows into China from a model that predicts FDI inflow based on government quality indicators and controls and is...

Roll [1988] observes low R2 statistics for common asset pricing models due to vigorous firm-specific return variation not associated with public information. He concludes that this implies “either private information or else occasional frenzy unrelated to concrete information” [p. 56]. We...

Greater managerial ownership in family firms need not mitigate agency problems, especially when each family controls a group of publicly traded and private firms, as is the case in most countries. Such structures give rise to their own set of agency problems, as managers act for the controlling...

A panel of corporate ownership data, stretching back to 1902, shows that the Canadian corporate sector began the century with a predominance of large pyramidal corporate groups controlled by wealthy families or individuals. By mid-century, widely held firms predominated. But, from the 1970s on,...

This paper reports a statistical study of the temporal causal relationships between expansion of a firm's multinational structure and the firm's growth in spending of R & D and advertising. We find that firms increase R & D expenditures after expanding their multinational structure, but not vice...