Any investor faces important risk when investing in a public firm; risk is even more pronounce when investing in new public firms since relatively little is known at the time of the initial public offering. The information asymmetry problem is partially mitigated through the underpricing of the...

We analyse a Kyle-type continuous-time market model in which liquidity trading is correlated with a noisy public signal that is released continuously. We show that, in contrast to the previous literature, Kyle's lambda, the price sensitivity to the order flow, can even be nonmonotonic, depending...

This paper develops and tests hypotheses regarding the relationship between D&O insurance purchase and firm size, governance characteristics, and business risk, using a unique panel dataset on Canadian firms for years 1996-2005. The rich data permit examination of the determinants of insurance...

We analyze the imperfect competition among multiple informed traders in an economy with a risky asset whose liquidation value is private information and follows a mean-reverting process. The unique linear equilibrium has an analytic form and is explicitly analyzed. When there are more auctions...

We analyze a model of informed trading where an activist shareholder accumulates shares in an anonymous market and then expends costly effort to increase the firm value. We find that equilibrium prices are affected by the position accumulated by the activist, because the level of effort...

The term “inside information” is key to both the EU insider trading prohibition and the European continuous disclosure requirement. Artt. 2-4 Market Abuse Directive (MAD) prevent market participants from trading on, disclosing, and making investment recommendations on the basis of inside...

The disclosure of inside information is a core component of EU capital market regulation. It underpins the market abuse regime, providing information to investors, and robbing it of its “inside” quality. Different regimes tackle the issue of inside information disclosure in distinct ways....

Share buybacks are in many respects a socially desirable financial technique, and the tremendous majority of these operations is surrounded by adequate safeguards preventing any risk of improper implementation. Yet share buybacks may, in some circumstances, reflect market manipulation practices,...

I employ a unique NFL gambling dataset to disentangle information asymmetry between bettors and sportsbooks. In contrast to expectations, I find no evidence that sportsbooks hold more information than the bettors. In fact, the results show that in instances where sportsbooks behave as if they...