Senior Fellows/Fellows

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Senior Fellows/Fellows

Reverse Mergers, Shell Value, and Regulation

Charles M. C. LEE, Yuanyu QU, Tao SHEN
Using a comprehensive sample of reverse merger (RM) transactions, we examine the effects of China’s IPO regulations on the prices and returns of its publicly listed stocks. During 2007-2015, unlisted Chinese firms paid an average of 3 to 4 Billion RMB for each listed shell, an amount exceeding 2/3...
Keywords: reverse mergers, shell value, anomalies, regulation risk, IPOs, Chinese equity markets
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AMPF Papers

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Policy Note

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May 2022

Retirement Policy in a Post-Covid World

Eric FRENCH
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Annual Conference

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Corporate Finance

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May 2014

Restraining Overconfident CEOs through Improved Governance: Evidence from the Sarbanes-Oxley Act

Suman BANERJEE, Mark HUMPHERY-JENNER, Vikram NANDA
The literature posits that some CEO overconfidence benefits shareholders, though high levels may not. We argue adequate controls and independent viewpoints provided by an independent board mitigates the costs of CEO overconfidence. We use the concurrent passage of the Sarbanes-Oxley Act and changes ...
Keywords: Over-Confidence, Over-Investment, risk-taking, Quality of Investment, SOX, firm performance
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Annual Conference

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Investment Finance

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May 2024

Resolving Estimation Ambiguity

Paul H. DECAIRE, Denis SOSYURA, Michael D. WITTRY
Using valuation models of financial analysts, we identify the drivers of disagreement in stock valuation. Disagreement in the discount rate is as important in explaining the variation in a stock’s intrinsic value as the disagreement in expected cash flows. Analysts derive the discount rate by esti...
Keywords: Disagreement, Security Valuation, Model Inputs, Subjective Beliefs
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Annual Conference

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International Macroeconomics, Money & Banking, Senior Fellows/Fellows

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May 2023

Reserves were not so ample after all

Darrell DUFFIE, Adam COPELAND, Yilin (David) YANG
The Federal Reserve’s “balance-sheet normalization,” which reduced aggregate reserves between 2017 and September 2019, increased repo rate distortions, the severity of rate spikes, and intraday payment timing stresses, culminating with a significant disruption in Treasury repo markets in mid-S...
Keywords: Repo rates, reserves, Treasuries, payments, central-bank balance sheet
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