This paper examines whether the results supporting a sentiment-related overpricing story is valid even after controlling for the effect of macroeconomic conditions. We no longer find the results consistent with the sentiment-related overpricing story after adjusting for the effect of several...

This paper specifically examine how the extent of the distress puzzle differs according to the degree of mispricing and short sale constraints. We find that the distress puzzle observed for overpriced stocks, not for underpriced stocks, becomes insignificant after adjustment for short sale...

This paper specifically examine how the extent of the distress puzzle differs according to the degree of mispricing and short sale constraints. We find that the distress puzzle observed for overpriced stocks, not for underpriced stocks, becomes insignificant after adjustment for short sale...