The ongoing empirical debate about whether SRI is associated, if anything, with subpar or surpassing financial performance is characterized by a somewhat indistinct focus and the infeasibility of tapping the full potential of existing models. By indistinct focus, we mean an analysis based on an aggregation of a myriad of SRI factors that potentially affect a firm’s financial performance. The in...

This study links together theoretical models of strategic alliances with an empirical examination of stock returns on the announcement of strategic alliances. Using a sample of 123 strategic alliance announcements, the results find strong support for the hypothesis that strategic alliance announcements generate significant positive abnormal returns on the announcement day. Although strategic al...

In this paper, we examine the information content (firm specific) and information transfer (other firm) effects of share buy back announcements using a unique Australian data where the stated reason for the buy back is undervaluation of the firm's stock price. Consistent with the US studies, we find that such share buy back announcements signal positive information about the announcers and thei...

One of the most challenging areas in technical analysis is the automatic detection of technical patterns that are similar in the eyes of experts. Such a detection process should closely resemble or capture human cognitive abilities or even intuition. We incorporate human cognitive uncertainty into the technical analysis by using a fuzzy logic based approach. The results show that our approach i...

We measure net arbitrage trading by the difference between abnormal hedge fund equity holdings and abnormal short interest on a stock. In the cross section, net arbitrage trading strongly predicts future stock returns. This predictability is not due to temporary price pressure, cannot be produced using total institutional holdings, but is consistent with information advantage and copycat tradin...

Exploiting the fact that insiders trade for a variety of reasons, we show that there is predictable, identifiable “routine” insider trading that is not informative for the future of firms. A portfolio strategy that focuses solely on the remaining “opportunistic” traders yields value-weighted abnormal returns of 82 basis points per month, while abnormal returns associated with routine traders ar...

Abstract. This chapter explores the stock price impact of expirations of lock-up provisions that prevent insiders from selling their shares after the Initial Public Offering (IPO). I examine 172 lock-up expirations of 142 IPOs floated on Germany’s Neuer Markt. I detect significant negative abnormal returns and a twenty-five percent increase in trading volume surrounding lock-up expiration. The ...

We define annual shareholder meetings as contentious if one or more ballot items are likely to obtain sufficient shareholder votes to induce a firm to implement governance changes. Using a sample of almost 28,000 meetings between 2003 and 2012, we find that abnormal stock returns over the 40-day period prior to contentious meetings are significantly positive and higher than prior to non-content...

The purpose of this article is to investigate whether the securities regulation put forward by the EU contributes to an efficient stock market. An event study of investor meetings/presentations held by listed Danish firms is conducted. The article finds significantly positive abnormal returns a few days around investor meetings. Share turnover reaches maximum one day after investor meetings. Th...

We investigate share price reactions to announcements of dividends payable in the common stock of corporations different from the issuing firm. We find that firms that declare these dividends (typically investment companies) experience positive abnormal returns upon announcement. We also find that such dividends are more likely to be declared when the shares to be distributed have peaked in val...