Investors who possess information about the value of an IPO can participate in the offering as well as trade strategically in the aftermarket. Both the bookbuilding and the fixed price IPO selling methods require more underpricing when aftermarket trading by informed investors is considered....

The concepts of comprehensive regulation, financial networks, linkages, contagion risk and complexity have become the everyday reference in discussions about financial regulation. Most of these concepts of complex adaptive systems have been developed and originally deployed in quantitative...

Improving understanding of the complex relationships among financial entities is critically important for risk managers and for financial authorities charged with multiple policy objectives. High quality information is lacking at both the intra- and inter-enterprise levels and to support...

The Hollywood quot;studio systemquot; - with production, distribution, and exhibition vertically integrated - flourished from the late teens until 1948, when the U.S. Supreme Court issued its famous Paramount decision. The Paramount consent decrees required the divestiture of affiliated theater...

Among the clearest rules in U.S. securities law is the duty that brokers have to quot;seek the best execution that is reasonably available for its customers' orders.quot; The problem with the current orientation of the policy discussion on best execution is that it has focused on the narrow, yet...

This paper explores the interaction between insider trading and seasoned equity offering in the context of Myers and Majluf (1984). Private information conveyed through trading activities may mitigate information asymmetry and improve capital market efficiency. Moreover, an insider has less...

This paper provides risk/reward evaluation and legal analysis of foreign investing under Cuban Law No. 118 (2014). Section I addresses dynamic changes in Cuba since 2008. Section II examines reforms of Cuban foreign investment laws. Section III explores investment options such as import/export,...

In this paper, I test whether, following an equity carve-out, there is a reduction in information asymmetry among investors of the parent firm, and whether this reduction is value-enhancing. I measure information asymmetry by estimating the probability of information-based trading (PIN) using a...

The United States represents the world’s largest market for pharmaceutical drugs. It is also the only advanced economy in the world that does not regulate drug prices. There is no upper threshold for the prices of medicines in the United States. List prices are instead set by manufacturers in...

We analyze the effects of cognitive abilities on two examples of consumer financial decisions where suboptimal behavior is well defined. The first example refers to consumers who transfer the entire balance from an existing credit card account to a new account, but use the new card for...