We model an IPO company's optimal response to the presence of sentiment
investors.“Regular” investors are allocated stock that they subsequently sell to sentiment …

We present a synthesis of academic research on corporate payout policy grounded in the
pioneering contributions of Lintner (1956) and Miller and Modigliani (1961). We conclude …

We examine whether irrational behavior among small (retail) investors drives post‐IPO
prices. We use prices from the grey market (the when‐issued market that precedes …

In an accelerated seasoned equity offering (SEO), an issuer foregoes the investment bank's
marketing efforts in return for a lower fee. To explain why many issuing firms choose a …

This paper examines whether open market share repurchases deter takeovers. We model
pre‐repurchase takeover probability as a latent variable and examine its impact on the firm's …

In this paper we develop a measure of liquidity, price impact, which quantifies the change in
a firm's stock price associated with its observed net trading volume. For a large set of …

Recent studies document a strong positive relation between quarterly and annual changes
in institutional ownership and returns measured over the same period. The source of this …

We argue that inertial behavior on the part of investors can have significant consequences
for corporate financial policy. One implication of investor inertia is that it improves the terms …

We examine the firm's choice between an SEO and a PIPE, an innovation in follow-on equity
selling mechanism seen in the late 1990s. Our primary finding indicates that the rapid rise of …

Stock flippers pose a problem for underwriters of initial public offerings (IPOs). They
subscribe to the issue, but immediately resell their shares, which may depress the …