The standard analysis of corporate governance is that shareholders vote in the ratios that firms choose, such as one-share-one-vote. But if the cost of unbundling and trading votes is sufficiently low, then shareholders vote in the ratios that they themselves choose. We document an active market...

Short selling plays a unique role in financial markets. Short selling’s institutional structure is distinct from other types of trades, and short sellers have been shown to be more informed than other types of traders. This review discusses short sellers’ motivation, the institutional...

We examine three aspects of investors? divergence of opinion in the context of takeovers.First we examine the effect of divergence of opinion and short sale constraints on merger announcement returns. To our knowledge, no study has analysed this combined effect for acquirers and targets. Using a...

On July 15, 2008, the US Securities and Exchange Commission announced temporary restrictions on naked short sales of the stocks of 19 financial firms. The restrictions offer a unique empirical setting to test Miller?s (1977) conjecture that short-sale constraints result in overpriced securities...

Portfolios in idiosyncratic momentum are formed on past residuals of the Fama-French three factor model rather than past total returns. This study examines whether the idiosyncratic momentum strategy can sustain excess returns following the emergence of traded options. We compare idiosyncratic...