We study the consequences of firm-specific stock price crashes (SPCs) by examining whether, and if so, how SPCs affect market information efficiency. This contrasts with prior research that focuses on firm-specific causes or determinants of SPCs. The tension underlying our research question...

Innovation and obsolescence describes dynamics of ever-churning and adapting social and biological systems from the development of economic markets and scientific progress to biological evolution. The shared aspect of this picture is that agents destroy and extend the "idea lattice" in which...

Unlike prior research that focuses on determinants of firm-specific stock price crashes (SPCs), we study the consequences of SPCs on market information efficiency. The tension underlying our research question stems from two competing explanations. As an unanticipated shock, a SPC could stimulate...

We examine the determinants of corporate cash holdings in Australia and the impact on shareholder wealth of holding excess cash. Our results show that a trade-off model best explains the level of a firm's cash holdings in Australia. We find that ‘transitory' excess cash firms earn...