Essays In Empirical Corporate Finance And Institutional Ownership

Download Essays In Empirical Corporate Finance And Institutional Ownership full books in PDF, epub, and Kindle. Read online Essays In Empirical Corporate Finance And Institutional Ownership ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!

ESSAYS IN EMPIRICAL CORPORATE FINANCE AND INSTITUTIONAL OWNERSHIP

Author : Farooq Durrani
Publisher :
ISBN 13 :
Total Pages : 110 pages
Book Rating : 4.:/5 (128 download)

DOWNLOAD NOW!

Book Synopsis ESSAYS IN EMPIRICAL CORPORATE FINANCE AND INSTITUTIONAL OWNERSHIP by : Farooq Durrani

Download or read book ESSAYS IN EMPIRICAL CORPORATE FINANCE AND INSTITUTIONAL OWNERSHIP written by Farooq Durrani and published by . This book was released on 2020 with total page 110 pages. Available in PDF, EPUB and Kindle. Book excerpt: My dissertation consists of two chapters which explores various aspects of empirical corporate finance and institutional ownership. In the first chapter, I examine whether common owners - an institution with holdings in both the distressed and the lending firm - ameliorates this conflict given that common owners should seek to maximize the equity value of both firms. The results show that when a common owner holds a stake in both the borrowing and lending firm, distressed firms are over 3.3-times more likely to file for Chapter 11 freefall bankruptcy (rather than prepack) as compared to borrowing-lending firms without a common owner. Using ownership of passive funds as an instrument for the presence of a common owner, I provide evidence of a causal relation between common ownership and bankruptcy filing choice. Overall, the analysis indicates that common ownership in both financially distressed borrowing firms and their lending firms leads to a greater likelihood of Chapter 11 freefall bankruptcy filing; suggesting that common owners typically side with creditors to maximize their combined equity value in both the borrowing and lending firm. Next, I examine the effect of CEO social connections on stock returns. An equally weighted (value weighted) long-short portfolio strategy earns investors excess returns of 5.39% (4.44%) per year. Three potential reasons explain the relation between CEO social connections and excess returns; better firm performance, investor information asymmetry, and/or greater investor risk-bearing. Our analysis provides evidence consistent with CEO connections both increasing firm risk and improving firm performance.

Essays on Empirical Corporate Finance

Author : Li Zhang
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (697 download)

DOWNLOAD NOW!

Book Synopsis Essays on Empirical Corporate Finance by : Li Zhang

Download or read book Essays on Empirical Corporate Finance written by Li Zhang and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Essays in Empirical Corporate Finance and Portfolio Choice

Author : Andrij Bodnaruk
Publisher :
ISBN 13 :
Total Pages : 166 pages
Book Rating : 4.3/5 (555 download)

DOWNLOAD NOW!

Book Synopsis Essays in Empirical Corporate Finance and Portfolio Choice by : Andrij Bodnaruk

Download or read book Essays in Empirical Corporate Finance and Portfolio Choice written by Andrij Bodnaruk and published by . This book was released on 2005 with total page 166 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Three Essays in Corporate Finance and Institutional Investors

Author : Jiekun Huang
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (139 download)

DOWNLOAD NOW!

Book Synopsis Three Essays in Corporate Finance and Institutional Investors by : Jiekun Huang

Download or read book Three Essays in Corporate Finance and Institutional Investors written by Jiekun Huang and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Essays on Corporate Finance and Institutional Investors

Author : Ang Li
Publisher :
ISBN 13 :
Total Pages : 125 pages
Book Rating : 4.:/5 (115 download)

DOWNLOAD NOW!

Book Synopsis Essays on Corporate Finance and Institutional Investors by : Ang Li

Download or read book Essays on Corporate Finance and Institutional Investors written by Ang Li and published by . This book was released on 2020 with total page 125 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Three Essays on Ownership Issues in Corporate Finance Dissertation

Author : Yuan Wang
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (134 download)

DOWNLOAD NOW!

Book Synopsis Three Essays on Ownership Issues in Corporate Finance Dissertation by : Yuan Wang

Download or read book Three Essays on Ownership Issues in Corporate Finance Dissertation written by Yuan Wang and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The study consists of three research topics about corporate ownership and financial issues. Existing literature focuses on overall corporate ownership structure. This study extends the existing literature by studying the impacts of different ownership types. Different types of shareholders are different in several key aspects such as investment policies, targets, and risk preference, all of which influence how they execute their screening role over the companies, and are important determinants of firms' decisions. To the extant literature, scholars have employed various perspectives to examine corporate ownership. In this study, I will be focusing on the behavior agency theory, agency theory, and socioemotional wealth theory, in the hope of bringing a more nuanced insight of the impacts of different corporate ownership on financial issues, such as, cost of bank loan, the formation of international joint venture, and CEO turnover. In the first essay, I employ a sample of U.S. public companies between 2007 and 2016 to explore the joint effects of executive inside debt (EID) and family involvement on the cost of bank loans. The empirical results indicate that the mitigating effect of EID on the cost of bank loans is attenuated for family firms. In addition, I provide evidence for the following: 1) the mitigating effect of EID on cost of debt is strengthened when a firm's performance is lower than its aspiration level and 2) the moderating effect of family involvement is significant when firm performance is above its aspiration level. Collectively, our findings support the behavioral agency prediction that family involvement shapes firms' risk-taking preference, which acts as a substitute for EID in decreasing the cost of debt. In the second essay, I examine whether family involvement in business affects firms' engagement in international joint ventures (IJVs). Building on the narrow framing perspective, I argue that family businesses are more prone to utilize risk diversifying strategies over multiple IJV choices than non-family firms, because the family firms' decisions tend to be broadly-framed. Examining the interaction between three IJV decisions (type of IJV, choice of host country, and number of partners) in a sample of 1,439 IJVs formed by publicly traded companies in the US, we found support for our predictions. In the third essay, I explore how institutional holding together with other finance factors affect the likelihood of CEO turnover and whether analyst forecast accuracy serves as a mechanism through which institutional holding influences the likelihood of CEO turnover. I find that increased institutional shareholding results in a lower likelihood of CEO turnover directly as well as indirectly (through the mechanism of analyst forecast accuracy). We also investigate the impact of CEO turnover on subsequent firm performance using market-based measures, including firm value and the cost of equity. Moreover, we examine whether different types of CEO turnover would make a difference on firm value and cost of equity. Our results reveal that after CEO turnover-especially when the previous CEO is forced to leave, and the successor is from outside the company-the firm value is higher, and the cost of equity is lower.

Essays on Institutional Ownership

Author : William Warren Jennings
Publisher :
ISBN 13 :
Total Pages : 256 pages
Book Rating : 4.3/5 (91 download)

DOWNLOAD NOW!

Book Synopsis Essays on Institutional Ownership by : William Warren Jennings

Download or read book Essays on Institutional Ownership written by William Warren Jennings and published by . This book was released on 1998 with total page 256 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Three Essays on Institutional Investors

Author : Ligang Zhong
Publisher :
ISBN 13 :
Total Pages : 436 pages
Book Rating : 4.:/5 (82 download)

DOWNLOAD NOW!

Book Synopsis Three Essays on Institutional Investors by : Ligang Zhong

Download or read book Three Essays on Institutional Investors written by Ligang Zhong and published by . This book was released on 2012 with total page 436 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this dissertation, I investigate the impact of institutional investors on security prices and corporate policies, and offer a new perspective on the vital role that institutional investors play in the modern capital market. Specifically, on the impact on security price movements, I design a new measure of stock-level sentiment based on mutual fund publically disclosed portfolio information and provide a new dimension to better predict stock returns. A trading strategy based on the new sentiment metrics can generate an annualized alpha of 21.27%. The abnormal returns cannot be explained by the time-varying expected returns and transaction costs, and can be best explained by mutual fund overreactions. Hence, my findings can be interpreted as a new anomaly in a new era-when institutional investors are the marginal traders. On the impact on corporate policy side, I document two pieces of new empirical evidence on the importance of long-term institutional holdings: the entrenchment effect of long-term institutional holdings in the context of corporate financing decisions and the active monitoring role of long-term institutional investors in the context of international firms' accounting qualities. Combined with previous studies which favour a long-term institutional investor, the evidence on the cost side of long-term holding I document here can serve as the first call for an optimal investment horizon for firms operating in the U.S.

The Role of Institutional Investors in Corporate Governance

Author : P. Nix
Publisher : Springer
ISBN 13 : 1137327030
Total Pages : 317 pages
Book Rating : 4.1/5 (373 download)

DOWNLOAD NOW!

Book Synopsis The Role of Institutional Investors in Corporate Governance by : P. Nix

Download or read book The Role of Institutional Investors in Corporate Governance written by P. Nix and published by Springer. This book was released on 2013-07-12 with total page 317 pages. Available in PDF, EPUB and Kindle. Book excerpt: What role do independent institutional investors play in the corporate governance of listed German companies? The authors provide insight into an empirical and qualitative research study, exploring the importance of communication and the role, independence and expertise, responsibilities, influence and monitoring of institutional investors.

Essays in Empirical Economics

Author : Lukas Jakob
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (115 download)

DOWNLOAD NOW!

Book Synopsis Essays in Empirical Economics by : Lukas Jakob

Download or read book Essays in Empirical Economics written by Lukas Jakob and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Essays in Corporate Finance

Author : Xinye Zhang Liu
Publisher :
ISBN 13 :
Total Pages : 178 pages
Book Rating : 4.:/5 (974 download)

DOWNLOAD NOW!

Book Synopsis Essays in Corporate Finance by : Xinye Zhang Liu

Download or read book Essays in Corporate Finance written by Xinye Zhang Liu and published by . This book was released on 2016 with total page 178 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of three papers in corporate finance. Chapter 1 studies how mergers affect client relationship, using evidence from the investment banking industry. Our finding suggests that issuers, especially small ones, choose relationship underwriters to capitalize on relationship-specific assets and reduce the degree of underpricing. Bank mergers result in loss of relationship-specific capital, making the post-merger banks less attractive to the pre-merger banks relationship clients. The loss of relationship capital following bank mergers also results in more underpricing, especially for small issuers. Chapter 2 examine an important factor underlying the cross-sectional variation in CEO Pay-Performance Sensitivity(PPS): investor-manager disagreement. I characterize the optimal PPS when investors and managers have heterogeneous priors, and those priors affect project investment decisions, even under symmetric information. With a large sample, I find strong empirical evidence that CEO pay-performance sensitivity is decreasing with perceived investor-manager disagreement, and the magnitude of the association is economically important. Chapter 3 investigates the causal effects of involuntary delisting from a stock exchange on stock liquidity and long-term firm value. Focusing on firms in violation of NASDAQ continued listing rules between 2000 and 2009, I compare firms eventually delisted and moved trading of its stocks to Over-The-Counter (OTC) markets and those regained compliance and remained on NASDAQ. Market volatility during the delisting grace period is used as an instrumental variable (IV) for delisting outcome. My findings suggest large and negative delisting effect on trading volumes and the firms future access to public equity market; However, once selection is addressed, delisted stocks are no longer associated with higher transaction costs, lower analyst coverage or institutional ownership. My findings also suggest large cross-sectional difference based on a stocks pre-event trading volume: leaving NASDAQ for the OTC markets appear to be costly for previously actively-traded stocks but not the thinly-traded ones.

Essays in Empirical Asset Pricing

Author : Weike Xu
Publisher :
ISBN 13 :
Total Pages : 93 pages
Book Rating : 4.:/5 (976 download)

DOWNLOAD NOW!

Book Synopsis Essays in Empirical Asset Pricing by : Weike Xu

Download or read book Essays in Empirical Asset Pricing written by Weike Xu and published by . This book was released on 2016 with total page 93 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation includes two essays. The first essay examines how changes in ownership breadth affect the profitability of 21 anomaly-based strategies. I find that the profitability of these strategies is weaker following a growth in ownership breadth in the prior quarter. The return pattern is primarily attributed to the insignificant returns in the short portfolios. In addition, reduction in short-sale constraints due to increase in the ownership breadth can explain the insignificant return in the short portfolio. The conclusions stay the same after controlling for the common risk factors including the Fama-French three factors and the momentum factor. My results are robust to different size groups, different portfolio weighting methods, an alternative measure of active institutional investors and cross-sectional regression tests. These findings indicate that active institutional investors improve market efficiency. In the second essay, I examine how the relaxation of short-sale constraints affects the readability in financial disclosures using a natural experiment. From 2005 to 2007, the SEC implemented a pilot program in which one-third of the Russell 3000 stocks were randomly selected as pilot stocks and were exempted from short-sale price tests. I find that the readability of 10-K reports for the pilot stocks significantly decreases during the program period. Moreover, the relation between a reduction in short-sales constraint and annual report readability is not uniform in the cross-section. I find that the results are more pronounced for firms that are smaller, less profitable or riskier; for firms that have lower institutional ownership or analyst coverage; and for firms with worse corporate governance or corporate social responsibility. I conclude that Regulation SHO leads to lower readability in the context of financial disclosures.

Essays on Household and Corporate Finance

Author : Hui Wang
Publisher :
ISBN 13 :
Total Pages : pages
Book Rating : 4.:/5 (119 download)

DOWNLOAD NOW!

Book Synopsis Essays on Household and Corporate Finance by : Hui Wang

Download or read book Essays on Household and Corporate Finance written by Hui Wang and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation has two essays which lie at the intersection of household finance and corporate finance. The topics include household leverage and human capital investment, and cross-holding and corporate borrowing. The essays hope to provide empirical analysis to better understand the economic decision made by both individuals and firms in practice. The first essay is “Household Financial Leverage and Human Capital Investment”. In this study, I find that household leverage has a hump-shaped effect on individual’s incentive to invest in human capital. Using the comprehensive information from the National Longitudinal Survey of Youth, I identify human capital investment decision based on whether an individual requests and participates in on-career skill acquisition training, and estimate household leverage based on the detailed debt and asset information. To strengthen causal inferences, I construct an instrumental variable based on changes in household’s mortgage burden relative to home value resulting from plausibly exogenous housing price fluctuations across regions and over time. Overall, this study highlights the effect of household leverage on human capital investment, which provides valuable implications for decisions of both individuals and macro policymakers. The second essay is “Networking Behind the Scenes: Institutional Cross-industry Holdings and Information Frictions in Corporate Loans”, joint with Jie He, Lantian Liang, and Han Xia. In this research, we study the role played by institutional investors in shaping firms’ cost of borrowing through affecting borrowers’ information friction in corporate loan market. We find that borrowers linked to banks other than the existing lenders through cross-holdings enjoy significantly lower loan spreads. This finding is mostly driven by institutions transmitting information between portfolio firms and banks, which mitigates information frictions and thereby reduces firms’ borrowing costs. For identification, we adopt a difference-in-differences method based on the quasi-natural experiment of financial institution mergers. Our evidence highlights an important effect of institutions’ cross-industry holdings on the corporate loan market.

Two Essays on Investments

Author : Jie Zhu
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (136 download)

DOWNLOAD NOW!

Book Synopsis Two Essays on Investments by : Jie Zhu

Download or read book Two Essays on Investments written by Jie Zhu and published by . This book was released on 2017 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In my dissertation, I study factors that influence investments from either corporate or institutional perspective. First, I examine the sensitivity of corporate investment to internally generated cash flow and its pattern of change over time across countries. Second, I investigate how a firm's customer profile can shape its ownership structure of institutional investors. Existing studies have documented a puzzling disappearance of investment-cash flow (ICF) sensitivity in the U.S.. In the first chapter, I explore whether economic and financial development can explain the extent of a country's ICF sensitivity and its evolution through time. I find that, in aggregate, ICF sensitivity has also faded around the world; yet it has remained high in countries with low economic and financial development. Further, I find that the access to external finance, especially equity finance, is a key channel through which country-level development affects the sensitivity of investment to internal cash flow. In more developed countries, external finance has become more accessible for firms when their internal cash flow is insufficient, thereby reducing their reliance on internal cash flow. The results indicate that once a country advances to a certain degree of financial and economic development, it becomes more efficient in allocating resources and therefore financial constraints at the individual firm level become less binding. A growing literature has documented different financial implications of a concentrated customer base. In the second chapter, I examine how customer concentration affects institutional investors' investment decisions. I find that a firm's customer concentration tends to attract different groups of institutional investors, depending upon their investment horizons. Specifically, those institutions who trade actively (short-term) would buy the stocks of firms with a more concentrated customer base. Conversely, those institutions who trade less actively (long-term) would buy the stocks of firms with a less concentrated customer base. While the preference of long-term investors is supported by the increased risk associated with the dependency on a few large customers, I find that the improved stock liquidity is the channel through which a concentrated customer base attracts short-term investors. Further, my findings cannot be explained by information transfer along the supply chain.

Institutional Ownership and Multinational Firms

Author : James J. Kennelly
Publisher : Psychology Press
ISBN 13 : 9780815333555
Total Pages : 140 pages
Book Rating : 4.3/5 (335 download)

DOWNLOAD NOW!

Book Synopsis Institutional Ownership and Multinational Firms by : James J. Kennelly

Download or read book Institutional Ownership and Multinational Firms written by James J. Kennelly and published by Psychology Press. This book was released on 2000 with total page 140 pages. Available in PDF, EPUB and Kindle. Book excerpt: The legendary Greek figure Orpheus was said to have possessed magical powers capable of moving all living and inanimate things through the sound of his lyre and voice. Over time, the Orphic theme has come to indicate the power of music to unsettle, subvert, and ultimately bring down oppressive realities in order to liberate the soul and expand human life without limits. The liberating effect of music has been a particularly important theme in twentieth-century African American literature. The nine original essays in Black Orpheus examines the Orphic theme in the fiction of such African American writers as Jean Toomer, Langston Hughes, Claude McKay, James Baldwin, Nathaniel Mackey, Sherley Anne Williams, Ann Petry, Ntozake Shange, Alice Walker, Gayl Jones, and Toni Morrison. The authors discussed in this volume depict music as a mystical, shamanistic, and spiritual power that can miraculously transform the realities of the soul and of the world. Here, the musician uses his or her music as a weapon to shield and protect his or her spirituality. Written by scholars of English, music, women's studies, American studies, cultural theory, and black and Africana studies, the essays in this interdisciplinary collection ultimately explore the thematic, linguistic structural presence of music in twentieth-century African American fiction.

Institutional Investors, Corporate Ownership, and Corporate Governance

Author : Stuart L. Gillan
Publisher :
ISBN 13 :
Total Pages : 34 pages
Book Rating : 4.:/5 (318 download)

DOWNLOAD NOW!

Book Synopsis Institutional Investors, Corporate Ownership, and Corporate Governance by : Stuart L. Gillan

Download or read book Institutional Investors, Corporate Ownership, and Corporate Governance written by Stuart L. Gillan and published by . This book was released on 2002 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Two Essays on Corporate Innovation

Author : Hua-Hsin Tsai
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (138 download)

DOWNLOAD NOW!

Book Synopsis Two Essays on Corporate Innovation by : Hua-Hsin Tsai

Download or read book Two Essays on Corporate Innovation written by Hua-Hsin Tsai and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the first chapter, I examine the relationship between institutional investors' distraction and innovation. Institutional investor distraction means that these institutional investors get distracted when they perceive either positive or negative information from other stocks in their portfolio. Prior studies suggest institutional holdings provide stable funding for firm managers and thus allow them to pursue long term innovation (stability hypothesis). However, the level of institutional holdings is also a proxy for the level of attention given by these institutions (attention hypothesis). I address this debate by utilizing the investor distraction measure of Kempf, Manconi, and Spalt (2017) and find that institutional investors' distraction reduces firm patent filings, citations, and quality, supporting the attention hypothesis. The effect is concentrated in firms owned by institutions providing beneficial monitoring but limited attention: passive institutions, independent institutions, and institutions with a low ownership concentration in the firm. The test shows that investor distraction impacts innovation via the monitoring channel or the information channel. In my second essay, I investigate the relationship between a firm's external financing needs and the extent of technology spillovers that the firm experiences. Reliance on external funds is captured by the firm's level of external financial dependence (EFD) firm. My empirical results indicate that firms with higher technology spillover have lower external financial dependence.