asymmetric information and risk. Ellul and Pagano (2006) first linked the underpricing with liquidity proxies like liquidity risk … and effective spread. In this paper I propose a different liquidity based framework which compares an IPO to a large sell …-initiated block trade, and the underpricing to the price pressure effect of the trade itself, which means the price for the liquidity …

We examine the causes and consequences of insiders' liquidity needs as a motivation for the secondary sales in an … the levels of insider sales, and (4) higher levels of insider sales due to liquidity needs result in lower levels of … underpricing and long-run returns. Taken together these results also suggest that liquidity induced secondary sales can be a source …

equity. In contrast, agency theory predicts that distressed firm managers have strong self-interests to finance even … distressed firm managers subsidize losing operations. These findings collectively suggest that agency theory better predicts …

more cash; (2) when they have excess cash, they invest less and pay out more to shareholders; and (3) they are more likely …

improve trading liquidity …

equilibrium liquidity provision from equity and bond dealers and non-monotonic stock-bond price comovement. We find supportive …

The paper shows that issuing activity does not result in superior liquidity. Even the kinds of new issues that are … existing liquidity-based explanations of the new issues puzzle. The paper also shows that the low-minus-high turnover factor …