This paper investigates the role of information precision in IPO pricing. The model shows that more precise information will exert more influence on the offer price. In strong support of the model, I find that the proportion of the industry return during the waiting period that is incorporated...

We examine investor order strategies in response to short-lived information using a natural experiment on September 8, 2008, in which a 2002 bankruptcy story on United Airlines erroneously reappears through Bloomberg terminals and cause significant price changes on the stock. Our results show...

Morck et al. (2000) argue that lack of private property protection discourages informed traders from capitalizing on firm private information which incorporates more market risk in stock returns. This paper extends Morck et al. (2000) investigations and suggests alternatively that firm corporate...

The theoretical literature on Initial Public Offerings (IPOs) strongly argues for the theory of ‘Information Asymmetry'. The existence of asymmetric information problem is mainly attributable to the lack of trading history for IPO firms and superior information possessed by different entities...

We examine the strategies of different types of investors (the insider, the information follower, and the price follower) who have asymmetric information about future news events and how these strategies affect stock prices. We show that stock price jumps occur when the insider receives accurate...

Whether the information environment affects the cost of capital is a fundamental question in accounting and finance research. Relying on theories about competition between informed investors as well as the pricing of information asymmetry, we hypothesize a cross-sectional variation in the...

Whether the information environment affects the cost of capital is a fundamental question in accounting and finance research. Relying on theories about competition between informed investors as well as the pricing of information asymmetry, we hypothesize a cross-sectional variation in the...

The goal of achieving transparency has become more challenging in recent years as banks' activities have become increasingly more complex and dynamic, making it harder for outsiders to comprehend the full extent of banks' exposures. In this study, we examine various on- and off-balance sheet...