As the primary entity responsible for new legislation, Congress is capable of enacting legislation that may affect future market returns. To examine potential effects, the percentage of the House of Representatives and Senate controlled by a political party is examined. Additionally, the effect...

This study examines how information environment and industry concentration affect the relations between firms’ financial disclosure quality and cost of capital. Information environment is proxied by firm size, and industry concentration is proxied by four-firm concentration ratio. The...

We perform an event study to assess one potential effect of economic sanctions on source countries. Specifically, for publicly-traded firms in the U.S. that report China as a geographic segment, we examine the stock price reaction to the Tiananmen Square Massacre, which occurred on June 4, 1989....

A Parent company occasionally spins off a wholly owned subsidiary or division, if it helps improve operational efficiency, reduce information asymmetry, reduce tax liability, and improve corporate governance. Therefore, it is suggested that corporate spin-offs create shareholders' value. It is...

Using German stock data from 1980 to 2008, this study tests whether stock price momentum can be explained by anchoring – a specific form of non-rational behavior. Three different empirical tests indicate that anchoring is the driver of the 52-week high strategy which is long in stocks...

This paper empirically analyzes the short run performance of Tunisian initial public offerings (IPO). It sheds light on the determinants of IPO’s in a context of a frontier market characterized by high information asymmetry, low information efficiency, thin trading and the presence of...

It is well-known that financial markets respond quickly to the announcements of changes in the Federal Funds target rate. This paper examines the stock price reaction of individual stocks listed under the Dow Jones Industrial Average () to Federal Funds target rate change announcements using...

There is agreement regarding the fundamental role of transaction costs in determining currency options market efficiency. However, the estimation of transaction costs in this relationship is controversial. In this study, a bootstrapping approach is adapted to decompose the error term of the...

The brewing industry has recently experienced increased merger activity. This paper analyzes the shortterm wealth effects of horizontal mergers and acquisitions on acquirers in the brewing industry. Based on a sample of 69 takeover announcements between 1998 and 2010, significant positive...

This study investigates whether investors efficiently incorporate changes in defined benefit pension plan information in stock prices. The sample is comprised of public US companies with available data from 1980 to 2005. Fama and French three factor (1993) and four factor models results reveal...