We reexamine investor tendency to overweight recent experiences when predicting future performance of firms by examining a sample of firms making private equity placements. Our findings are consistent with the projection argument that investors use the recent experiences of other firms to...

We examine whether discretionary accruals of firms obtaining substantial external financing can be explained by managerial manipulation or managerial overoptimism. Insider trading patterns and press releases around equity and debt financing suggest that managers are more optimistic about their...

This paper investigates the extent to which institutional ownership of equity affects the market's response to announcements of new issues of common stock. The authors find that the absolute magnitude of the share price reaction is negatively related to the level of institutional ownership in...