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Persistent link: https://www.econbiz.de/10009623134
We examine the market mispricing and limits-to-arbitrage hypotheses on the positive relation between cash holdings and expected stock returns. Using investor sentiment as a proxy for market mispricing, we find that returns of cash holding stocks are heavily influenced by investor sentiment....
Persistent link: https://www.econbiz.de/10013004095
We examine the investor sentiment and limits-to-arbitrage explanations for the positive cross-sectional relation between cash holdings and future stock returns. Consistent with the investor sentiment hypothesis, we find that the cash holding effect is significant when sentiment is low, and it is...
Persistent link: https://www.econbiz.de/10012996608
improve trading liquidity …
Persistent link: https://www.econbiz.de/10013054996
equilibrium liquidity provision from equity and bond dealers and non-monotonic stock-bond price comovement. We find supportive …
Persistent link: https://www.econbiz.de/10013313044
The paper shows that issuing activity does not result in superior liquidity. Even the kinds of new issues that are … existing liquidity-based explanations of the new issues puzzle. The paper also shows that the low-minus-high turnover factor …
Persistent link: https://www.econbiz.de/10012904032
Shareholder litigation risk varies across time and across firms. When shareholder litigation risk is high, it can increase (decrease) a firm's cash and investment before (after) a lawsuit filing. When shareholder litigation risk is low, little to no impact occurs. A quasi-natural experiment...
Persistent link: https://www.econbiz.de/10012968812
I use the 2007-2008 financial crisis to gauge how internal financial resources and external financial constraints mitigate or worsen the impact of the crisis on default risk of US industrial firms. I identify heterogeneity in short-term funding needs at the onset of the crisis by exploiting...
Persistent link: https://www.econbiz.de/10013128496
information asymmetry from equity liquidity through the use of an information asymmetry index that is based on six measures that … liquidity, the data indicate that expected increases in leverage (target leverage changes) decrease the information asymmetry … index. This is consistent with the signalling hypothesis of Ross (1977), and is equivalent to increases in equity liquidity …
Persistent link: https://www.econbiz.de/10013083176
information asymmetries. We measure the latter by using equity liquidity. The effect is based on the assumption that one of the … main drivers of liquidity is the information asymmetry that exists between managers (insiders) and owners (outsiders). For … costs, and the price impact of order flow. Under the assumption of joint determination of leverage and liquidity, we find …
Persistent link: https://www.econbiz.de/10013067778