We use stock return data to investigate the effects of the First Executive (FE) failure on other life insurance firms. In contrast to previous studies, we explicitly test for the separate effects of individual (retail) and institutional customer responses. The announcement of an accounting...

We report simulations, using actual stock return data, of statistical tests of long-horizon buy-and-hold stock returns. We use benchmark portfolios purged of new-listings and rebalancing biases, and find that many proposed tests are misspecified, due in part to skewness. The use of a single...

Firms that issue convertible exchangeable preferred stock can later exchange it for debt with identical conversion and cash flow rights, thus capturing interest tax deductions when they can benefit from them. Despite tax and transaction-cost advantages, many issuers forego this innovative...

We provide the first simulation evidence of event-study test performance in multi-country non-U.S. samples. The nonparametric rank and generalized sign tests are more powerful than two common parametric tests, especially in multi-day windows. The two nonparametric tests are mostly well...

We find that accounting charges for goodwill impairment, which imply a deterioration in the capabilities of acquired assets to generate expected cash flows, provide useful indicators of CEO underperformance. We examine 5,990 firms that completed acquisitions and investigate the relation between...

We find that winning bidders in FDIC failed bank auctions from 2008 to 2013 experience substantial positive abnormal stock returns. Returns are inversely related to bid amounts after controlling for bid determinants, consistent with wealth transfers from the FDIC providing implicit subsidies to...

We examine wealth effects, for banks and insurers, of bank rights to sell and underwrite annuities. The stock-price reactions to four court and regulatory decisions are consistent with expectations of bank gains at insurers' expense. Cross-sectionally, smaller, riskier insurers with higher...

We investigate regulations intended to stop managers from privately disclosing corporate information to analysts in a setting with enhanced potential to isolate regulatory effects: the European Union (EU) Market Abuse Directive (MAD), a common regulation implemented by member states with varying...

We find that winning bidders in FDIC failed bank auctions from 2008 to 2013 experience substantial positive abnormal stock returns. Returns are inversely related to bid amounts after controlling for bid determinants, consistent with wealth transfers from the FDIC providing implicit subsidies to...