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Do analysts' preferences affect corporate policies?

Degeorge, François; Derrien, François; Kecskés, Ambrus; … - 2013

Equity research analysts tend to cover firms about which they have favorable views. We exploit this tendency to infer analysts' preferences for corporate policies from their coverage decisions. We then use exogenous analyst disappearances to examine the effect of these preferences on corporate...

Persistent link: https://www.econbiz.de/10009750620

Local Bias in Venture Capital Investments

Cumming, Douglas J. - 2009

This paper examines local bias in the context of venture capital (VC) investments. Based on a sample of US VC investments between 1980 and June 2009, we find more reputable VCs (older, larger, more experienced, and with stronger IPO track record) and VCs with broader networks exhibit less local...

Persistent link: https://www.econbiz.de/10013155051

Do Long-Term Investors Improve Corporate Decision Making?

Harford, Jarrad V. T. - 2017

We study the effect of investor horizons on a comprehensive set of corporate decisions. We argue that monitoring by long-term investors generates decision making that maximizes shareholder value. We find that long-term investors strengthen governance and restrain managerial misbehaviors such as...

Persistent link: https://www.econbiz.de/10012972671

Do Private Equity Investors Create Value for Italian Initial Public Offerings?

Meles, Antonio - 2014

This study analyses the role of private equity backing in initial public offerings (IPOs) using a dataset of 227 companies that went public on the Milan Stock Exchange between January 1995 and December 2007. The evidence rejects the certification and monitoring hypotheses and provides...

Persistent link: https://www.econbiz.de/10013067677

The Influence of Investor Identity and Contract Terms on Firm Value : Evidence from PIPEs

Billett, Matthew T. - 2015

Financial relationships can alleviate the adverse effects of asymmetric information and agency costs on outside stakeholders. We examine announcement returns to PIPE transactions, conditional on the contract terms and identity of the investor. We find that the influence of contract terms on...

Persistent link: https://www.econbiz.de/10013038201

Investor Activism and Mergers and Acquisitions (M&A)

Singh, Akshay - 2016

This study analyzed activism that leads to a merger or acquisition (M&A) of a firm to see its benefits for the … counts and cash versus stock offers to see the benefits of activism to the target firm and its shareholders. It checked the … shareholders, as compared to about 15-20% for the non-activism related M&A. It also observed a 30% increase in the post …

Persistent link: https://www.econbiz.de/10014034757

Chapter 8. Blockholders: A Survey of Theory and Evidence

Edmans, Alex; Holderness, Clifford G. - 2017

This paper reviews the theoretical and empirical literature on the role of blockholders (large shareholders) in corporate governance. We start with the underlying property rights of public corporations; we discuss how blockholders are critical in addressing free-rider problems and why, like...

Persistent link: https://www.econbiz.de/10014023374

Measuring Mutual Fund Flow Pressure As Shock to Stock Returns

Wardlaw, Malcolm - 2020

A large and rapidly growing literature examines the impact of misvaluation on firm policies by using mutual fund outflow-induced price pressure to isolate non-fundamental price variation. I demonstrate that the standard approach to computing outflow-induced price pressure produces a measure that...

Persistent link: https://www.econbiz.de/10012851373

Private Equity Investor Sentiment Around the World

Zhang, Minjie - 2017

I propose a new investor sentiment measurement for the private equity market based on over 12,000 private equity deals from 68 countries over 1992 to 2012. The data indicate that institutional environments and firm-specific characteristics are both strong determinants of the private equity...

Persistent link: https://www.econbiz.de/10012945758

When Fundamental Investors Relieve Market Pressures on Management : Evidence from France

Garel, Alexandre - 2016

In this paper, using an original database of investors operating on the French stock market, we investigate the real effect of ownership structure. We call fundamental investor an investor who, on average, holds on average his shares for at least two years, is in the top quartile of a firm...

Persistent link: https://www.econbiz.de/10012986796