Working Paper

01 August 2013

The Twilight Zone: OTC Regulatory Regimes and Market Quality

We analyze a comprehensive sample of more than 10,000 U.S. stocks in the OTC market. As little is known about this market, we first characterize OTC firms by trading venue and provide evidence on survival, success, frequency of venue...

Ulf Brüggemann | Aditya Kaul | Christian Leuz | Ingrid Werner
01 June 2013

Stock Market Returns, Corporate Governance and Capital Market Equilibrium

This paper proposes a theoretical model that incorporates corporate governance into the basic CAPM, where corporate governance affects the disutility of managerial effort and the possibility of managers to divert company...

Bruno Parigi | Loriana Pelizzon | Ernst-Ludwig von Thadden
01 June 2013

Do Analysts' Preferences Affect Corporate Policies?

Equity research analysts tend to cover firms about which they have favorable views. We exploit this tendency to infer analysts' preferences for corporate policies from their coverage decisions. We then use exogenous analyst...

François Degeorge | François Derrien | Ambrus Kecskés | Sébastien Michenaud
01 February 2014

Economic Crisis and Share Price Unpredictability: Reasons and Implications

During the recent financial crisis, there was a dramatic spike, across all industries, in the volatility of individual firm share prices after adjustment for movements in the market as a whole. In this Article, we demonstrate that a...

Edward Fox | Merritt Fox | Ronald Gilson