Boehme, Rodney D.; Danielsen, Bartley R.; Sorescu, Sorin M. - In: Journal of Financial and Quantitative Analysis 41 (2006) 02, pp. 455-487
Miller (1977) hypothesizes that dispersion of investor opinion in the presence of short-sale constraints leads to stock price overvaluation. However, previous empirical tests of Miller's hypothesis examine the valuation effects of only one of these two necessary conditions. We examine the...