This study details an investigation of the relationship between controlling shareholders’ share pledge and (a) firms’ financial leverage and (b) the cost of debt. Consistent with the literature suggesting that firms with controlling shareholders pledging their shares are associated with...

Prior research documents a positive relation between controlling shareholders’ share pledge and the probability of stock repurchase announcement. This study investigates whether and how stock mispricing and corporate governance affect this relation. By extending the framework of Chan, Chen,...

This study shows that investor sentiment plays an important role in affecting the pricing dynamics between the spot and futures markets. The empirical evidence suggests that investor sentiment has a positive impact on price volatility and the bid-ask spread on both the spot and futures markets,...

This paper studies the impact of investor sentiment on the probability of firms conducting seasoned equity offerings (SEOs) and on stock performance around and subsequent to SEOs. We first show that investor sentiment is positively related to SEO probability, and that small, high volatility,...

Examining a set of pilot stocks experiencing releases of short-sale price tests by Regulation SHO, we find a significant decrease in put volume and price pressure of options of the pilot stocks after Regulation SHO. Violations of put-call parity and information content of option trading...