We investigate the association between direct debtholder monitoring via bond covenants and delegated monitoring via borrowers' corporate governance mechanisms. We find that bond contracts include fewer covenants when the borrower's corporate governance is more effective in mitigating the agency...

Using idiosyncratic volatility as a proxy for arbitrage costs, the authors found that the highly publicized accrual and asset growth anomalies exist because of high barriers to arbitrage, occurring predominantly in the universe of stocks with higher arbitrage risks. Therefore, investors who seek...

Using a comprehensive sample of investment recommendations, we investigate differences in the performance, behavior, and career outcomes of male and female sell-side analysts. Compared to their male counterparts, we find that the recommendations of female analysts produce similar abnormal...

We study the return predictive power of asset growth related measures in the MSCI World Universe, which includes all the developed markets. We find strong return predictive power of asset growth related measures in these markets. This power is particularly stronger for two-year total asset...

We show that over a long study period (1963-2010), the existence and trading efficacy of the well-known low-volatility stock anomaly are more limited than widely believed. For example, we find that the anomalous returns are not found within equal weighted long-short (low minus high risk)...

The outbreak of COVID-19 has become a worldwide concern for consumers, businesses, and public policy makers. Social distancing is now a top consideration for consumers when deciding where and how to shop, which reduces their willingness to shop in physical stores with others who may carry the...

We analyze whether product market competition is an important factor in analyst coverage decisions and whether analysts benefit from covering product market competitors. We find that analysts are more likely to cover a firm When this firm competes with and offers more similar products to the...

Retailers are often short on capacity, so a logical assumption would be that retailers could improve their profits by acquiring more. In this study, we show that this is not necessarily true, because retailer's capacity has a strategic role in channel distribution. Specifically, we consider a...

Over the 1993-2000 period, a majority of U.S. venture-backed IPOs have venture backing by financial institutions. Each class of financial institutions has its own asset expertise, investment criteria and access to proprietary information on private firms, which we exploit evaluating whether...

We study IPO pricing when underwriters are venture capital investors in issuers and test three hypotheses concerning the effects of underwriter share ownership on the IPO underwriting and pricing processes. We find that venture investments by underwriters significantly reduce IPO underpricing;...