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Local Ownership as Private Information: Evidence on the Monitoring-Liquidity Trade-Off

Gaspar, José-Miguel; Massa, Massimo - C.E.P.R. Discussion Papers - 2004

This Paper investigates the impact of ownership patterns on the way the firm is monitored, on the liquidity of its … selection discount required by less informed investors to trade, reducing the firm’s liquidity. Both effects are properly … prices, but the lower liquidity induced by their presence tends to reduce prices. …

Persistent link: https://www.econbiz.de/10005497985

Distressed Acquisitions

Meier, Jean-Marie A.; Servaes, Henri - C.E.P.R. Discussion Papers - 2014

fewer large firms operate in the target firm’s industry, and when firms in the target’s industry have lower liquidity, and …

Persistent link: https://www.econbiz.de/10011083439

Financial Signalling by Innovative Nascent Entrepreneurs

Audretsch, David B; Bönte, Werner; Mahagaonkar, Prashanth - C.E.P.R. Discussion Papers - 2009

Innovative new ventures fail if they cannot attract resources needed to commercialise new ideas and inventions. Obtaining external resources is a central issue for nascent entrepreneurs - people who are in the process of starting new ventures. We argue in this paper that, a way to deal with this...

Persistent link: https://www.econbiz.de/10005656288

Do Retail Incentives Work in Privatizations?

Keloharju, Matti; Knüpfer, Samuli; Torstila, Sami - C.E.P.R. Discussion Papers - 2004

20 countries around the world have used incentive packages, including bonus shares and discounts, to attract retail investors to participate in privatizations. Using a unique dataset, we estimate the total cost of incentive packages at approximately $27 billion. The expiration of bonus share...

Persistent link: https://www.econbiz.de/10005656346

Pseudo Market Timing: Fact or Fiction?

Dahlquist, Magnus; de Jong, Frank - C.E.P.R. Discussion Papers - 2004

The average firm going public or issuing new equity underperforms the market in the long run. A potential explanation of this long-run underperformance has to do with the endogeneity of the number of new issues. That is, due to the clustering of events after periods of high abnormal returns in...

Persistent link: https://www.econbiz.de/10005661636

Limits of Limits of Arbitrage: Theory and Evidence

Hombert, Johan; Thesmar, David - C.E.P.R. Discussion Papers - 2009

We present a model where arbitrageurs operate on an asset market that can be hit by information shocks. Before entering the market, arbitrageurs are allowed to optimize their capital structure, in order to take advantage of potential underpricing. We find that, at equilibrium, some arbitrageurs...

Persistent link: https://www.econbiz.de/10005666728

Changes in Equity Ownership and Changes in the Market Value of the Firm

Lins, Karl; McConnell, John J.; Servaes, Henri - C.E.P.R. Discussion Papers - 2004

We study the stock price response to announcements of share purchases by corporate insiders over the period 1994 through 1999. The cross-sectional variability in the response is consistent with a curvilinear relation between firm value and insider ownership, where the value of the firm first...

Persistent link: https://www.econbiz.de/10005123861

Shareholder Diversification and IPOs

Bodnaruk, Andriy; Kandel, Eugene; Massa, Massimo; … - C.E.P.R. Discussion Papers - 2004

We study IPOs by focusing on the degree of portfolio diversification of the shareholders taking the company public. We argue that a less diversified shareholder has more to gain from taking the company public and would be more willing to accept a lower price for the sale of its shares, i.e....

Persistent link: https://www.econbiz.de/10005124086

U.S. Monetary Shocks and Global Stock Prices

Laeven, Luc; Tong, Hui - C.E.P.R. Discussion Papers - 2010

This paper studies how U.S. monetary policy affects global stock prices. We find that global stock prices respond strongly to changes in U.S. interest rate policy, with stock prices increasing (decreasing) following unexpected monetary loosening (tightening). This impact is more pronounced for...

Persistent link: https://www.econbiz.de/10008692313

A Theory of Supervision with Endogenous Transaction Costs

Faure-Grimaud, Antoine; Laffont, Jean-Jacques; … - C.E.P.R. Discussion Papers - 1998

We propose a theory of supervision with endogenous transaction costs. A principle delegates part of his authority to a …

Persistent link: https://www.econbiz.de/10005114332