This paper examines the price reaction around the announcements of CEO option grants in Australia. Our aim is to explore if there is a price reaction and if so, is the reaction consistent with the argument that options grants align the interests of managers and shareholders and motivate managers...

We examine the market reaction to announcements of actual share repurchases, events that cluster both within and across firms. Using a multivariate regression model, we find that the market reacts positively to the events, indicating that these announcements provide additional information to...

We argue that information about firm activities can vary substantially in the presence of founder or heir ownership, thereby influencing the risks borne by minority investors. We explore two hypotheses with regard to these controlling shareholders and corporate transparency, focusing on their...

We track trading activity in the days preceding acquisition announcements for target firms, and find that abnormally high trading volume precedes significant price movement. Using additional intraday data, we find increased active-selling in target stocks before acquisition announcements that...

By addressing the interaction between security market microstructure and the generalized agency conflict between managers and shareholders, we study the effects of informed insider trading on productive efficiency, price discovery, and wealth redistribution. Insider trading can lead...

Mergers and Acquisitions (Mamp;A) aim to increase wealth for shareholders of the acquiring company, in particular by creating synergies. It is often assumed that relatedness is a source of synergies. Our study distinguishes between business, cultural, technological and size relatedness. It...

We evaluate the impact of firm-level corporate governance provisions on the valuation of firms in a large cross-section of countries. Unlike previous work, we differentiate between minimally accepted governance attributes that are satisfied by all firms in a given country and governance...

This paper investigates how personal connections facilitate informed option trading prior to corporate events. We identify person-to-person connections between hedge funds and companies before merger and acquisitions announcements and find that fund managers' pre-announcement option holdings...