Purpose: The purpose of this paper is to investigate the impact of factor-based trading strategies on pricing and volume. Design/methodology/approach: The authors employ a regression discontinuity approach to identify abnormalities in volume or pricing around expected portfolio changes. In...

When a new blockholder (NewB) is expected to form in private firm acquisitions paid with stock, investors react strongly to the perceived certification and monitoring effects. The salience of a NewB, however, induces investor inattention to other information, opening doors for managerial...