Hong, Hung, and Lobo (2014, HHL) document a decrease in IPO underpricing and an increase in the relative proceeds from foreign markets following the 2005 mandatory IFRS adoption. In a study that re-examines the impact of mandatory IFRS adoption on IPO underpricing, Byard, Darrough, and Suh...

The literature shows that a lender becomes reluctant to aid a distressed client after it receives insurance on its outstanding debt via a credit default swap (CDS). The onset of CDS trade thus accelerates client bankruptcy. We predict that the client firm's shareholders would respond by...

We examine whether option prices correct for predictable bias in stock prices associated with accounting anomalies. Evidence from put-call parity violations suggests that they do not. Rather, option prices accurately track contemporaneous stock prices. Further analysis suggests that high costs...

A credit default swap (CDS) enables a lender to hedge its risk exposure on a loan given to reference client. The lender then reduces the monitoring of the client's activities as well as aiding the distressed client. Two contrasting predictions can be made about how the borrower would respond to...