Using a sample of long-term supply contracts collected from SEC filings, I show that hold-up concerns and information asymmetry are important determinants of contract design. Asymmetric information between buyers and suppliers leads to shorter term contracts. However, when longer duration...

We investigate whether the spread of corporate debt contacts can be explained by their ultimate recovery rates. Using the actual realized recovery rates of defaulted debt instruments issued in the US from 1962 to 2007, we find that recovery rate is reflected in the spread at issuance, and that...

High disclosure quality can be achieved through an effective investor-relations program and results in firm benefits such as enhanced market exposure, increased analyst coverage and institutional following. We examine the association between disclosure quality and information asymmetry where a...

The neglected advantages of “new markets†in marginalized rural and inner-city areas have been touted in the policy arena since the early 1990s. Althoughmuch of the motivation has been based on equity, there are potentially strong efficiency arguments for such renewed attention. This...

This article tests four hypotheses (signalling, market tendency, market characteristics and the ex ante uncertainty and information asymmetry) to explain the initial public offerings (IPOs) underpricing in the Tunisian market. Most of the empirical studies focus mainly on developed markets and...

The present study investigates the information dissemination efficiency of the Indian equity futures market. Daily log returns of all indices as well as individual stock futures contracts understudy have been found to be non-normal and responding asymmetrically to the information shocks....

The present article examines the impact of rolling settlement on contemporaneous and causal relationships between return, volume and volatility in Indian stock market using daily data of closing prices and volume of NIFTY index of NSE and SENSEX of BSE from January 1997 to June 2007. The...

We investigate whether senior officers use accrual-based earnings management to meet voluntary earnings disclosure (i.e., management earnings forecasts) before selling or buying their own shares when they have private information. This study is the first to use the differences in timing of...

The economic literature on negotiation shows that strategic concerns can be a barrier to agreement, even when the buyer values the good more than the seller. Yet behavioral research demonstrates that human interaction can overcome these strategic concerns through communication. We show that...

The topic of nonprofit reform has sparked a debate on the battle between efficiency and effectiveness. Why do ineffective nonprofits survive? Prospective donors favor applicants likely to fulfill donor priorities. Donors with limited time and energy look for signals that reveal recipients' true...