Annual Conference

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Corporate Finance

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May 2018

Can Deal Failure Be Predicted?

Stacey JACOBSEN, Utpal BHATTACHARYA
We utilize a hand-collected measure of extreme deal failure, the impairment of acquisition goodwill, to examine whether realized value destruction is detected by the market at deal announcement. On average, acquirer announcement returns have only moderate power in forecasting the probability and poo...
Keywords: Mergers, Acquisitions, Acquirer Abnormal Return, Target Abnormal Return, value destruction, overpayment, goodwill impairmen
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Specialty Conference

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Specialty Conference

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Feb 2022

By a Silken Thread-Regional banking integration and pathways to financial development in Japan’s Great Recession

Mathias HOFFMANN, Toshihiro OKUBO
How do financial development and financial integration interact? We focus on Japan’s Great Recession after 1990 to study this question. Regional differences in banking integration affected how the recession spread across the country: financing frictions for credit-dependent firms were more severe ...
Keywords: financial development, financial integration, Japan, Great Recession, Lost Decade, banking integration, regional business cycles, transmission of financial shocks, misallocation of credit, trade credit, export finance, silk industry
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Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2013

Buyers Versus Sellers: Who Initiates Trades And When?

Tarun CHORDIA, Amit GOYAL, Narasimhan JEGADEESH
Models that examine investor’s motivations to trade often make opposite predictions about the relation between trading decisions and past returns. We find that, in the aggregate, both buyer- and seller-initiated trades increase with past returns. The difference between buyer- and seller-initiated ...
Keywords: Order imbalance, disposition effect, tax-loss selling
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Senior Fellows/Fellows

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Senior Fellows/Fellows

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Feb 2017

Busy Directors: Strategic Interaction and Monitoring Synergies

Alexander LJUNGQVIST, Konrad RAFF
We derive conditions for when having a “busy” director on the board is harmful to shareholders and when it is beneficial. Our model allows directors to condition their monitoring choices on their co-directors’ choices and to experience positive or negative monitoring synergies across firms. ...
Keywords: Boards of Directors, Busy Directors, Monitoring
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Annual Conference

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Corporate Finance, Senior Fellows/Fellows

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May 2014

Busted! Now What? Effects of Cartel Enforcement on Firm Value and Policies

Massimo MASSA, Alminas ZALDOKAS, Ailin DONG
In a cross-country study we look at the staggered passage of national leniency laws over 1990-2012. We show that these laws lead to more convictions of cartels, and generally increase the costs of collusion by reducing the average gross margins of the affected firms. We further examine how changing ...
Keywords: cartels, leniency laws, Collusion, firm boundaries, M&A
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