Recent Submissions

  • Does tradeoff theory explain high-frequency debt issuers? 

    Eckbo, Espen B.; Kisser, Michael (Working paper, 2015-07)
    Over the past forty years, one-third of the publicly listed industrial firms in the U.S. raised two- thirds of all public and private debts (net of debt rollovers). We use these high-frequency debt issuers (HFIs) - large ...
  • Partial Adjustment to Public Information in the Pricing of IPOs 

    Bakke, Einar; Leite, Tore E.; Thorburn, Karin S. (Working paper, 2016-01)
    Extant literature shows that IPO first-day returns are correlated with market returns preceding the issue. We propose a new explanation for this puzzling predictability by adding a public signal to Benveniste and Spindt ...
  • Dynamic portfolio optimization with transaction costs and state-dependent drift 

    Palczewski, Jan; Poulsen, Rolf; Schenk-Hoppé, Klaus Reiner; Wang, Huamao (Working paper;2014:1, Working paper, 2014)
    We present an efficient numerical method to determine optimal portfolio strategies under time- and state-dependent drift and proportional transaction costs. This scenario arises when investors have behavioral biases or ...
  • Are stock-financed takeovers opportunistic? 

    Eckbo, B. Espen; Makaew, Tanakorn; Thorburn, Karin S. (Working paper;2013:4, Working paper, 2013)
    We find that the probability of all-stock financed takeovers increases with measures of bidder overvaluation. However, when we instrument the bidder's pricing error using aggregate mutual fund flows, the reverse happens: ...
  • Fragmentation and stability of markets 

    Ladley, Daniel; Lensberg, Terje; Palczewski, Jan; Schenk-Hoppé, Klaus Reiner (Working paper;2013:7, Working paper, 2013-07)
    Trading skills are highly rewarded in practice but largely ignored in theoretical models of financial markets. This paper demonstrates the importance of skills by exploring their interaction with market fragmentation and ...
  • Innovation, competition, and investment timing 

    Koskinen, Yrjö; Mæland, Jøril (Working paper;2013:3, Working paper, 2013)
    In our model multiple innovators compete against each other by submitting investment proposals to an investor. The investor chooses the least expensive proposal and when to invest in it. Innovators have to provide costly ...
  • Hedging without sweat : a genetic programming approach 

    Lensberg, Terje; Schenk-Hoppé, Klaus Reiner (Working paper;2013:5, Working paper, 2013)
    Hedging in the presence of transaction costs leads to complex op- timization problems. These problems typically lack closed-form so- lutions, and their implementation relies on numerical methods that provide hedging ...
  • Governance in financial distress and bankruptcy 

    Thorburn, Karin S.; Ayotte, Kenneth M.; Hotchkiss, Edith S. (Working paper;2013:1, Working paper, 2013)
    This chapter provides a survey of law, economics, and finance scholarship at the intersection of corporate governance and financial distress. In financial distress, both inside and outside of bankruptcy court, formal and ...
  • Corporate restructuring 

    Thorburn, Karin S.; Eckbo, B. Espen (Working paper;2013:3, Working paper, 2013)
    We survey the empirical literature on corporate nancial restructuring, including breakup transactions (divestitures, spin-o s, equity carveouts, tracking stocks), leveraged recapitalizations, and leveraged buyouts (LBOs). ...