Concerns over size in banking arise from the potential for a megabank to harm competition and extract safety net subsidies. With the worrisome increases in size having been achieved through megamergers, this paper examines whether gains in such mergers trace to efficiency improvements or market...

Concerns over size in banking arise from the potential for a megabank to harm competition and extract safety net subsidies. With the worrisome increases in size having been achieved through megamergers, this paper examines whether gains in such mergers trace to efficiency improvements or market...

The quality of corporate governance has been shown to have wide-ranging implications, e.g., on the performance of stock markets and on exchange rates. This study investigates whether the quality of corporate governance in a country impacts investment decisions made at the micro level of the...

We examine stocks of bankrupt firms after the court confirms they will receive nothing. While trading volume is negligible for most worthless stocks, some have sizable trading volume, indicating investor ignorance of their zero intrinsic value. Prices respond irrationally to news in several...

We examine the effect of a voluntary change in ticker symbol without other contemporaneous corporate events such as a name change. We find significant declines in trading volume and prices on the effective date of the ticker change. We segment the sample by exchange listing, share turnover...

This paper examines the extent of reliance on private debt from 1980 through 1988 for a set of firms selected from Fortune 500 firms in 1980. The average firm in this set obtained more than half of its debt from private sources throughout the period, with a slight decline in the mid-1980's....

We examine the valuation effects of out-of-the-money calls of convertible securities. In general, out-of-the-money calls generate positive abnormal stock returns. These returns are higher when the call price exceeds the market value of the called securities (positive premium calls), compared...

Previous research documents that Hong Kong stocks have a full ex-dividend price adjustment consistent with dividends and capital gains being tax free. We examine ex-dividend price behavior of Hong Kong ADRs to assess the impact of differing tax environments in US and Hong Kong. These ADRs...

The law of one price relies on enforcement by arbitragers who are expected to eliminate price differentials quickly. Arbitragers’ activities are constrained by liquidity of markets. However, large price differentials attract arbitrage activity enhancing the liquidity of markets. Using daily...