Using data for 2,391 non-financial firm commitment initial public offerings (IPOs) between January 1996 and December 2002, we examine the relation between pre-IPO insider ownership and underpricing for high-tech and low-tech IPOs. Contrary to the conventional wisdom that suggests that firms in...

The extant literature on initial public offerings (IPOs) generally assumes that a high degree of pre-IPO leverage serves as a positive signal of firm quality as it forces a firm's managers to adhere to tough budget constraints. Our paper questions the validity of this assumption when it is...

We examine insider trading surrounding takeover rumors in a sample of 1,642 publicly traded U.S. firms. Using difference-in-differences regressions, we find that insider net purchases increase within the year prior to the first publication of a takeover rumor, particularly when rumor articles...

Debt capital represents one of the most important means with which German companies finance their business. Yet, despite its importance, academics and practitioners alike typically analyze debt capital separately from other components of a firm's capital structure components. One important...