Demand of passive index tracking funds has fared as a convincing explanation to justify the large positive (negative …) abnormal returns experienced by firms added to (deleted from) S&P 500. However, the shrinking magnitude of the index effect … predicts, and substantial abnormal returns before the index announcements suggest that demand of index funds doesn’t seem to be …

stocks of the DAX30 index) we find that the the average correlation between these variables is -0.193. We develop modified …

pecking order theory. Our index relies exclusively on measures of the market's assessment of adverse selection risk rather …Using a novel information asymmetry index based on measures of adverse selection developed by the market microstructure …. Overall, this evidence explains why the pecking order theory is only partially successful in explaining all of firms' capital …