Operating and stock return results imply that managers that commit fraud likely anticipate large stock price declines if they do not misreport earnings. Stock price declines cause greater losses for managerial stockholdings than for option holdings because of differences in payoff convexity....

Acquisitions among specialist firms can increase specialist firm size, capitalization, and market concentration, and thus potentially have important effects on market quality. We examine the impact of NYSE specialist firm acquisitions on market quality and find that while stocks traded by both...