In this paper, we investigate the price performance of outstanding CoCos after a new CoCo issue is announced by the same issuer. Contingent Convertible bonds or CoCo bonds are new hybrid capital instruments that have a loss absorbing capacity which is enforced either automatically via the...

Using the real options and game theory, the paper studies the timing and pricing for IPOs. The motivation of IPOs can be divided into three categories: Financing, Merger and Acquisitions, and Investment from financial viewpoint. Four kinds of closed solutions of optimal timings and equilibrium...

This study investigates the extent of surplus cash holdings and their influence on abnormal returns in initial public offerings of stock in Tehran Stock Exchange. The 101 companies during the period 2003 to 2012 were selected. Selective approach to testing hypotheses, examining cross-sectional...

We exploit a unique sample of structured financial products (SFPs) to analyze pricing and issuance dependencies among different types of such market-linked investment vehicles. Our study provides evidence of cross pricing between products with complementary payoff profiles. Such dependencies may...

The timing and pricing are the key factors for initial public offerings (IPOs). Applying the real options and game theory, this paper examines the timing and pricing for IPOs. From a financial viewpoint, the motivation for an IPO can be divided into three categories: financing, investing, and...

It is well documented that IPO stock prices decline without reversals around lockup expirations, creating a novel setting to examine the impact of option trading on stock price efficiency. I find that optionable IPO stocks' prices experience significant declines prior to lockup expirations,...

We investigate the impacts of financial investors in commodity markets using intraday trade-and- quote data for commodity futures. We find strong evidence of order flows and price impacts in agricultural futures markets associated with changes in the positions of index traders reported by the...

Over-allotment arrangements are nowadays part of almost any initial public offering. The underwriting banks borrow stocks from the previous shareholders to issue more than the initially announced number of shares. This is combined with the option to cover this short position at the issue price....

This paper considers the introduction of stock options in an (dynamically) incomplete securities market made up of a riskless bond and the stock. The stock price follows a geometric Brownian motion with constant drift. However, there is incomplete information about the unknown stochastic...

We investigate the impact of independent valuation specialists on the downward bias of pre-initial public offering employee stock option valuations. Undervalued stock price estimates underlying firms' option grants produce option valuations that overstate earnings and provide employees with deep...