Reena Aggarwal and Yanbin Wu ♦ We examine the preopening process and price discovery from the offer price to the first open price in initial public offerings. The extent of price discovery during preopening is influenced by firm characteristics and preopening…
Gregory W. Eaton, Feng Guo, Tingting Liu, and Danni Tu ♦ Using manually compiled cost of equity (COE) estimates disclosed in takeover regulatory filings, we provide novel evidence on how finance professionals, i.e., investment bankers, estimate discount rates. COE estimates…
Jie (Jack) He, Xiao (Shaun) Ren, Tao Shu, and Huan Yang ♦ Consistent with theories on the equilibrium matching between capital structure and employee job risk aversion, we find a robust, positive association between a firm’s leverage and its employees’…
Elia Ferracuti, Roni Michaely, and Laura A. Wellman ♦ We document an increase in market power for politically active firms during times of heightened policy uncertainty, when their information and influence advantage is greater. The effect is long-lasting and stronger…
Jin Xu, Pengfei Ye, and Cheng Zhang ♦ We document firms often determine CEO equity grants based on a predetermined dollar value (value-based equity grant) instead of on the number of shares (share-based grant). Value-based equity grants weaken the relationship…
Stefano Pegoraro and Mattia Montagna ♦ We show non-financial corporations changed the quantity and composition of their bond issues in response to the European Central Bank’s corporate quantitative easing program. Eligible issuers shifted toward bonds meeting the program’s eligibility requirements.…
