The New Issues Puzzle

Companies issuing stock during 1970 to 1990, whether an initial public offering or a seasoned equity offering, have been poor long-run investments for investors. During the five years after the issue, investors have received average returns of only 5 percent per year for companies going public and only 7 percent per year for companies conducting a seasoned equity offer. Book-to-market effects account for only a modest portion of the low returns. An investor would have had to invest 44 percent more money in the issuers than in nonissuers of the same size to have the same wealth five years after the offering date.     

Bids and Allocations in European IPO Bookbuilding

This paper uses evidence from a data set of 27 European IPOs to analyze how investors bid and the factors that influence their allocations. We also make use of a unique ranking of investor quality, associated with the likelihood of flipping the IPO. We find that investors perceived to be long‐term holders of the stock are consistently favored in allocation and in out‐turn profits. In contrast to Cornelli and Goldreich (2001) , we find little evidence that more informative bids receive larger allocations or higher profits. Our results cast doubt upon the extent of information production during the bookbuilding period.     

最大化你的定价权

根据最新的一项全球调研表明,只有35%的公司认为它们有足够的定价权来保证其产品能获得合适的定价;其余65%的公司认为它们没有将其产品定价到应该的高度,这意味着它们不得不接受利润缩水25%的现实。那些不具定价权的公司往往将责任推卸到外部因素,如激进的竞争对手和严苛的客户。但是,根据该调     

Enforcement Mechanisms Discouraging Black–American Presence in Suburban Detroit

In metropolitan Detroit, scholars have long observed that geographic space is racialized in the sense that black Americans are not welcome in many suburban communities. This extends beyond housing segregation: black drivers are not wanted on many suburban streets. While the existence of racial animosity has been documented, the enforcement mechanisms utilized to ‘protect’ certain geographic areas from black presence have rarely been quantified and dissected. This study examines police behavior toward black motorists who were arrested during routine traffic stops in the Detroit suburb of Eastpointe. Comparison of search, arrest, and handcuff patterns of white and black motorists indicates that police bias harms blacks. Rather than simply being anti‐black, patterns of police behavior in Eastpointe enforce racialized space, signaling where black presence is tolerated and where it is discouraged. Depuis longtemps, les intellectuels observent la racialisation de l’espace géographique, au sens que les Américains noirs ne sont pas les bienvenus dans de nombreuses communautés de banlieue de la métropole de Détroit. La tendance dépasse la ségrégation des logements: les automobilistes noirs sont indésirables dans bien des rues de banlieue. Si l’existence d’une animosité raciale a été documentée, les mécanismes coercitifs utilisés pour ‘protéger’ certaines zones géographiques d’une présence noire ont rarement été quantifiés ou disséqués. Cette étude examine l’attitude policière vis‐à‐vis des conducteurs noirs arrêtés au cours de contrôles de routine dans la banlieue de Eastpointe, à Détroit. Une comparaison des types de fouilles, arrestations et menottages d’automobilistes blancs et noirs révèle un préjugé de la police au détriment des noirs. Au lieu d’être simplement anti‐noirs, les types de comportement policier à Eastpointe impose un espace racialisé, indiquant là où la présence noire est tolérée et là où elle est dissuadée.     

The Determinants of the Maturity of Corporate Debt Issues

We document the determinants of the term to maturity of 7,369 bonds and notes issued between 1982 and 1993. Our main finding is that large firms with investment grade credit ratings typically borrow at the short end and at the long end and of the maturity spectrum, while firms with speculative grade credit ratings typically borrow in the middle of the maturity spectrum. This pattern is consistent with the theory that risky firms do not issue short-term debt in order to avoid inefficient liquidation, but are screened out of the long-term debt market because of the prospect of risky asset substitution.     

THE EFFECTS OF CORPORATE RESTRUCTURING ON AGGREGATE INDUSTRY SPECIALIZATION

It has been widely argued that the purpose of corporate restructuring during the 1980s was to produce a population of more industry-specialized, competitive firms in response to intensifying global competition. A number of studies show that corporate restructuring resulted in increased corporate focus during the 1980s. However, no study has yet examined whether corporate restructuring resulted in increased specialization at the industry level during the 1980s. This study examines this issue. First, we examine whether or not aggregate industry specialization increased during the 1980s. That is, we ask: did the average firm in any given U.S. industry become more or less specialized to that industry during the 1980s? Second, we examine whether corporate restructuring was a significant determinant of change in aggregate industry specialization during the 1980s. Using a sample of 686 four-digit SIC industries and 64 two-digit industry groups, this study finds that aggregate industry specialization declined very slightly at both the four-digit and two-digit level between 1981 and 1989. This study also finds that sell-offs of establishments through corporate control transactions or interfirm asset sales had no significant effect on aggregate industry specialization.