Chukwuma Dim ♦ This paper documents that 56% of nonprofessional social media investment analysts (SMAs) are skilled and declare beliefs that generate positive abnormal returns, while 44% produce negative abnormal returns. Some 13% high-type SMAs produce a one-week three-factor alpha of 61…
Martin M. Andreasen ♦ This paper presents a New Keynesian model to capture the linkages between macro fundamentals and the nominal yield curve. The model explains bond yields with a low level of news in expected inflation and plausible term…
Sandy Klasa, Hernán Ortiz-Molina, and Matthew Serfling ♦ We examine whether location within a dense regional cluster of interconnected businesses affected firm performance during the Great Recession and the subsequent recovery. Firms in denser regional clusters experienced faster sales growth…
Mohammad (Vahid) Irani, Wenhao Yang, and Feng Zhang ♦ We find that common ownership among acquirers enhances rather than hinders competition in the firm sale process. One common owner raises the likelihood that target firms are sold through auction (versus…
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…
