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…
Christian Fieberg, Gerrit Liedtke, Thorsten Poddig, Thomas Walker, and Adam Zaremba ♦ We propose CTREND, a new trend factor for cryptocurrency returns, which aggregates price and volume information across different time horizons. Using data on more than 3,000 coins, we employ machine learning…
