This study proposes an argument that reconciles disparate findings on the relation between acquiring firm abnormal returns and the relative size of acquisitions. We argue and show that relative size amplifies acquisition wealth effects, resulting in a positive relation for value-creating, but a...

We examine the negative relation between abnormal returns at acquisition announcements and the size of acquiring firms. This so-called size effect was first documented and investigated by Moeller, Schlingemann, and Stulz (2004), who conclude that hubris on the part of large acquirers most likely...

This study documents that total market volume is almost entirely unrelated to intertemporal variation in the number of earnings announcements. Thus, while individual earnings announcements, on average, significantly impact trading volume (e.g., Beaver, 1968), in aggregate this impact is minimal....

The paper investigates how auditor resignations affect capital market participants' perception of firms from which the auditors resign (quot;former clientsquot;) and of firms that continue as clients of the resigning auditor (quot;continuing clientsquot;). We find that resignation announcements...

This study investigates the impact of proprietary traders on information-related trading volume. We argue that news-based proprietary traders contribute a large and essentially fixed amount of trading volume to the market. Consequently, their impact becomes “detectable” with intertemporal...

While it is well-established that diversifying acquisitions by large cash-rich firms destroy shareholder wealth, we document positive abnormal returns to such acquisitions in the tobacco industry. We show these abnormal returns are associated with proxies for lower expected expropriation costs....