Senior Fellows/Fellows

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Senior Fellows/Fellows

Short and Long Horizon Behavioral Factors

David HIRSHLEIFER, Kent DANIEL, Lin SUN
Recent theories suggest that both risk and mispricing are associated with commonality in security returns, and that the loadings on characteristic-based factors can be used to predict future returns. We offer a parsimonious model which features: (1) a factor motivated by limited attention that is d...
Keywords: Factor Models, anomalies, Behavioral Factors
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Annual Conference

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Corporate Finance, Senior Fellows/Fellows

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May 2013

Shell Games: The Long Term Performance of Chinese Reverse Merger Firms

Ran ZHANG, Kevin Ke LI, Charles M. C. LEE
We examine the financial health and performance of reverse mergers (RMs) that became active on U.S. stock markets between 2001 and 2010, particularly those from China (around 85% of all foreign RMs). As a group, RMs are early-stage companies that typically trade over-the-counter. Chinese RMs (CRMs),...
Keywords: reverse mergers, listing requirements, Chinese firms, accounting fraud, cash flow life cycle, private-equity (PIPE) financing
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Annual Conference

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Corporate Finance, Senior Fellows/Fellows

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May 2016

Shareholder Wealth Consequence of Insider Pledging of Company Stock as Collateral for Personal Loans

Jason ZEIN, Ying DOU, Ronald W. MASULIS
We study a widespread yet under-explored corporate governance phenomenon: the pledging of company stock by insiders as collateral for personal bank loans. Utilizing a regulatory change that exogenously decreases pledging, we document a negative causal impact of pledging on shareholder wealth. We stu...
Keywords: Pledging, Managerial incentive, Downside risk, risk-taking, Payout policy
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Senior Fellows/Fellows

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Senior Fellows/Fellows

Shared Analyst Coverage: Unifying Momentum Spillover Effects

David HIRSHLEIFER, Usman ALI
Identifying stock connections by shared analyst coverage, we find that a connected-stock (CS) momentum factor generates a monthly alpha of 1.68% (t = 9.67). In spanning regressions, the alphas of industry, geographic, customer, customer/supplier industry, single- to multi-segment, and technology mom...
Keywords: cross-asset momentum, industry momentum, geographic momentum, customer momentum, supplier momentum, Technology momentum, complicated firms
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Webinar Series

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Capital Market Development: China and Asia

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Dec 2024

Share Pledging in China: Funding Listed Firms or Funding Entrepreneurship?

Zhiguo HE, Bibo LIU, Feifei ZHU
This paper connects share pledging with entrepreneurial activities in the context of China. Survey evidence shows that 33.0% of listed firms’ largest shareholders invested pledging funds in creating new firms. By linking firm registration data with pledging data, we show a positive relation betwee...
Keywords: Share pledging, Loans, Entrepreneurship, Listed firms, Economic growth
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