This paper examines the reaction of market share prices on announcement of share buyback, as a tool of restructuring of shares and the regulation of buyback practices in India. Companies announce buyback of shares either to increase the value of issued shares or to eliminate any fear by...

From 1963 through 2015, idiosyncratic risk (IR) is high when market risk (MR) is high. We show that the positive relation between IR and MR is highly stable through time and is robust across exchanges, firm size, liquidity, and market-to-book groupings. Though stock liquidity affects the...

From 1963 through 2015, idiosyncratic risk (IR) is high when market risk (MR) is high. We show that the positive relation between IR and MR is highly stable through time and is robust across ex-changes, firm size, liquidity, and market-to-book groupings. Though stock liquidity affects the...

It is commonly believed that stock prices help firms' managers make more efficient real investment decisions, because they aggregate information about fundamentals that is not otherwise known to managers. This paper identifies a limitation to this view. It shows that if informed traders...

Lack of monitoring the performance of managers not only has trampled the rights of shareholders and other stakeholders of the company, but also has increased the personal interests of managers in the absence of adequate monitoring on their performance. The aim of this study is to investigate the...

This study investigates the impact of leverage on earnings and share price of listed companies on Colombo Stock Exchange (CSE) in Sri Lanka. The study was identified 20 companies listed on the CSE for the period from year 2007/2008 to 2011/2012. The Degree of Operating Leverages (DOL), Degree of...

We present new evidence on debt covenant violation (DCV) consequences that have not previously been examined in the literature. In particular, we show that a DCV triggers significant information asymmetry and uncertainty on the part of shareholders and auditors as reflected in higher bid-ask...

This study examines whether the term of the auditor-client relationship (i.e., auditor tenure) is associated with future stock price crash risk measured both ex ante and ex post. Using a large sample of U.S. public firms with Big Four auditors, we find robust evidence that auditor tenure is...

This paper proposes a new method using option prices to estimate the market value of the voting right associated with a stock. The method consists of synthesizing a non-voting share using put-call parity, and comparing its price to that of the underlying stock. Empirically, we find this measure...

Data collection procedures remain paramount to quantitative research. However, there is a difficulty in presenting same in the research design, since the researcher is tempted to give an outline that does not directly reflect the specific research in question. This write-up focuses on the...