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We focus on the stock price reaction to convertible bond offering made by financial institutions and find that the cumulative abnormal return over the three day interval around convertible bond issuance is 1.41 percentage higher than that for non-financial institutions. This result supports our...
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We study the effect of the rise of indexing on price discovery. We show that this effect critically depends on the causes of the rise of indexing and the cost structure of information acquisition. If the rise of indexing is due to increased cost of participating in the non-index market, then the...
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