This paper examines how cooperation between national securities regulators affects equity market liquidity, using the International Organization of Securities Commissions' (IOSCO's) Multilateral Memorandum of Understanding (MMoU) as a shock to cooperation. The MMoU was set up to protect...

We examine the relationship between collective country reputations and foreign stock returns following news of corporate scandals. We find that investors punish not only the scandalous foreign firm but also other firms from the same country of origin, especially those coming from more...

We introduce a novel composite probability distortion (CPD) score based on investors’ stock valuations derived from a pure-probability-weighting version of cumulative prospect theory and from salience theory. This measure is strongly and consistently priced in the cross-section of...

Astrology suggests that Mercury Retrograde adversely affects financial gain. We study the effect of Mercury Retrograde on equity prices. By using 48 countries’ stock market indices, we find that stock market returns are 3.33% lower annually during Mercury Retrograde periods than in other...

This study examines the effect of cultural differences (CD) between U.S. multinational companies (MNCs) and their foreign subsidiaries on the firm value of the U.S. parent company. The study uses three different valuation models: (1) Tobin's Q; (2) Weighted Cost of Capital (WACC); and (3) Market...

Following default under a given ISDA Master Agreement, outstanding derivatives contracts have to be valued in accordance with the applicable provisions for Market Quotation, Loss or Close-out Amount. The interpretation and construction of these clauses is highly complex, in some respects even...

We examine the relationship between IPO underpricing and litigation risk in an international setting using a sample of 13,759 firms that went public across 40 countries between 1991 and 2011. While the majority of single-country studies do not find support for the lawsuit avoidance hypothesis,...

In this paper, we describe the development and current status of anti-manipulation rules as they apply to wholesale electricity and natural gas markets in the United States and the European Union, including the institutions that are responsible for overseeing these rules. We then compare and...

Using a large panel from 46 countries over 20 years, we find that non-U.S. firms issue corporate bonds more frequently and at lower offering yields following an equity cross-listing on a U.S. exchange. Firms issue more bonds through public offerings instead of private placements and in foreign...