HDFC Ltd. and HDFC Bank are going to merge soon into one entity. This paper recommends a suitable share excahnge ratio between the two companies. Different methodologies were used in this research to arrive at a suitable exchange ratio

We show that private firms that go public in the U.S. create positive information externalities for their already-listed peers: their IPO filings improve their peers’ trading liquidity directly, by reducing information asymmetry, and indirectly, by crowding in both voluntary disclosure and...

We contribute to the literature on the diversification benefits of commodity futures by integrating it with the literature on style integration. Our work augments the traditional asset mix of investors with a long-short portfolio that integrates the styles that matter to the pricing of commodity...

This study provides a solution of the equity premium puzzle. Questioning the validity of the Arrow-Pratt measure of relative risk aversion for detecting the risk behavior of investors under all conditions, a new tool, that is, the sufficiency factor of the model was developed to analyze the risk...

In this paper, we trace a fully-specified bank lending channel by using a trade shock, the law of the US granting China Permanent Normal Trade Relation Status (PNTR shock) in 2001. Specifically, PNTR shock causes banks to terminate their lending relationships and tighten loan contracts with...

Previous research has demonstrated that information asymmetry translates into higher transaction costs for trading shares of a firm, which, in turn, raise the required rate of return and lower current stock price. The information asymmetry perspective suggests that, ceteris paribus, managers...

This study examines the role of corporate social responsibility (CSR) activities in a firm’s debt and equity financing decisions. We also examine the effects of CSR on the deb-equity choice for financially constrained and non-constrained firms. We find that high CSR firms tend to use more debt...

Demand of passive index tracking funds has fared as a convincing explanation to justify the large positive (negative) abnormal returns experienced by firms added to (deleted from) S&P 500. However, the shrinking magnitude of the index effect despite the sharp increase in passive investing,...

This article analyzes the disclosure of the liability insurance coverage limit and the impact of mandating disclosure of the coverage limit in a setting where voluntary disclosure of a firm's cash flow information is subject to litigation risk and the firm has directors' and officers' (D\&O)...

The success of deep learning-based limit order book forecasting models is highly dependent on the quality and the robustness of the input data representation. A significant body of the quantitative finance literature focuses on utilising different deep learning architectures without taking into...