We design a new metric to measure the net buying and selling by institutions and individual investors and find that from 1980 to 2004 institutional investors were net buyers of growth stocks and net sellers of value stocks, implying that individual investors were net buyers of value stocks and net sellers of glamour stocks. The institutional preference for glamour and value stocks seems to be related to sell-side analysts' recommendations and recent favorable stock price performances, especially during the post-1994 period. Finally, the institutional buying of growth stocks and sale of value stocks was not based on superior information. 2008 The Southern Finance Association and the Southwestern Finance Association.

We examine the valuation effect of initial public debt offers on issuing firms common stock for the period 1970 to 2010. In contrast to findings for seasoned debt offerings, we find a statistically significant cumulative abnormal return of -0.24 percent over the three-day announcement period for the overall sample of 1,207 debt IPOs. Consistent with the prediction of the adverse selection model of Myers and Majluf (1984), the significant negative valuation effect of debt IPOs is only associated with risky issues that are assigned a high-yield bond rating. The announcements of low-risk investment grade debt IPO issues are associated with insignificant positive stock price reaction. In addition to the certifying effect of investment grade rating, the market also reacts favorably to successful debt IPOs issued under challenging conditions.

As an intangible marketing asset, customer satisfaction is rarely apparent on financial statements.

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