• Publications
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Market Discounts and Shareholder Gains for Placing Equity Privately
Despite selling at substantial discounts, private placements of equity are associated with positive abnormal returns. The authors find evidence that discounts reflect information costs borne byExpand
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Inter-Firm Linkages and the Wealth Effects of Financial Distress Along the Supply Chain
Extant research examines the extent to which bankruptcy has intra-industry valuation consequences. This study broadens the investigation by examining the wealth effects of distress and bankruptcyExpand
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Long‐Run Performance following Private Placements of Equity
Public firms that place equity privately experience positive announcements effects, with negative post-announcement stock-price performance. This finding is inconsistent with the underreactionExpand
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Behavioral and Rational Explanations of Stock Price Performance Around SEOS: Evidence from a Decomposition of Market-to-Book Ratios
We examine the extent to which investment opportunities and/or mispricing motivate equity issuance and contribute to post-issue stock underperformance. We decompose market-to-book ratios intoExpand
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Inference from Streaks in Random Outcomes: Experimental Evidence on Beliefs in Regime Shifting and the Law of Small Numbers
TLDR
Using data generated from laboratory experiments, we test and compare the empirical accuracy of two models that focus on judgment errors associated with processing information from random sequences. Expand
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Return Autocorrelations around Nontrading Days
We document a pattern in the serial dependence of security returns around nontrading days. The correlation of returns the second day after a weekend or holiday with returns the first day after isExpand
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Earnings Management Around Employee Stock Option Reissues
We investigate market behavior in a setting where managerial incentives to manipulate earnings and market price should be apparent ex ante to market participants. We find evidence of abnormally lowExpand
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Industry contagion in loan spreads
Spreads on new and renegotiated corporate loans are significantly higher when the loan originates (or is renegotiated) in the two years surrounding bankruptcy filings by industry rivals. ThisExpand
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Earnings and risk changes around stock repurchase tender offers
Abstract This paper provides evidence that repurchase tender offer announcements convey favorable information about the level and riskiness of future earnings. We show that analysts revise theirExpand
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Earnings and Risk Changes around Private Placements of Equity
This paper investigates earnings and risk changes for a sample of firms that issued equity in a private placement. The study is motivated by empirical findings that announcements of public andExpand
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