Sorin M. Sorescu

TL;DR: The authors examine debenture yields over the period 1983-1991 to evaluate the market's sensitivity to bank-specific risks, and conclude that investors have rationally reflected changes in the government's policy toward absorbing private losses in the event of a bank failure.

TL;DR: In this paper, the authors examined the valuation effects of the interaction between differences of opinion and short sale constraints and found that stocks are not systematically overvalued when either one of these two conditions is not met.

TL;DR: In this paper, the authors provide evidence that the documented abnormal returns and changes in short interest around option listings are consistent with the mitigation of short sale constraints resulting from the option introduction, and that both the abnormal return and short interest changes around listing dates can be predicted using ex ante characteristics of the underlying stock.

TL;DR: In this paper, the authors examine the valuation effects of the interaction between differences of opinion and short sale constraints and find robust evidence of significant overvaluation for stocks that are subject to both conditions simultaneously.

TL;DR: This paper applied a new research methodology to data on bank exam ratings and the subordinated debt risk spreads of their parent holding companies and found that government exams do produce new, value-relevant information; debenture prices do not immediately reflect this information; and that the market prices the likely regulatory actions implied by this information.