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Initial public offering (IPO) lockup agreements prevent insider sale of shares for specified periods of time (often 180 days). This study investigates share price reactions at and around the time the lockup agreements expire. Results indicate statistically significant negative abnormal returns in the event window surrounding the expiration date. The results are consistent with informational asymmetries and decreasing incentive alignment between insiders and general shareholders. In addition, multivariate analysis identifies several variables that help explain these abnormal returns.

This study examines the thoroughbred auction market in order to assess the effect of taxes on asset prices. Yearlings purchased from 2002 to 2004 are eligible for bonus depreciation, and the price of the yearlings is predicted to be bid up during this period. The research design employs pricing models that have been published in economics and agri-business academic journals. These models control for such factors as yearling lineage, gender, and month foaled. Thoroughbreds are sold annually, and much of the data set is constructed using auction market sale catalog information. Consistent with the prediction, yearling prices are higher in the bonus period than in other periods. A control group of broodmares, which are not eligible for bonus depreciation, does not exhibit the same time period price differential.

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