Stock Prices and IPO Waves (.pdf)
Pastor and Veronsi explain IPO waves by creating a model of “optimal IPO timing.” Their model predicts that firms will be more willing to issue shares when the required returns are lower, when the firm’s expected cash flows are higher (which could be interpreted at there being more positive investment opportunities-and therefore likely a greater need for cash), and “when the uncertainty surrounding … [ Read more ]
Content: Article | Authors: Lubos Pastor, Pietro Veronesi | Source: University of Chicago | Subjects: Finance, Industry Specific | Industry: Investment Banking
A Fresh Look At Mutual Funds’ Performance Data
For mutual fund analysts, new insights into evaluating a fund’s performance don’t come along every day. Lately, though, financial experts at Wharton and other schools have collaborated on research that challenges some long-held notions about which funds are best for investors. Included in that research is a paper by Lubos Pastor of the University of Chicago and Wharton’s Robert Stambaugh on how to improve standard … [ Read more ]
Content: Article | Authors: Lubos Pastor, Robert Stambaugh | Source: Knowledge@Wharton | Subject: Finance | Industry: Investment Banking