This study uses a natural experiment resulting from the 1997 Securities and Exchange Commission rule mandating a change in the order handling rules (OHR) for all NASDAQ stocks to test whether secondary market structure affects IPO underpricing. We find that the increase in liquidity that the OHR...

Booth and Chua (1996) suggest that underpricing may boost secondary market liquidity of an initial public offering (IPO), but to date there is little evidence on this point. In this study, we employ ten measures of liquidity to explore whether the underpricing of IPOs boosts subsequent secondary...

Empirical research has shown that hospitals have higher than average leverage, the extent of leverage is related to the extent of cost-based reimbursement, and not-for-profit hospitals are not as highly levered as their for-profit counterparts. Previous theoretical work does not unambiguously...

Standard models of adverse selection in insurance markets assume policyholders know their loss distributions. This study examines the nature of equilibrium and the equilibrium value of information in competitive insurance markets where consumers lack complete information regarding their loss...