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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Senior Fellows/Fellows

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Senior Fellows/Fellows

Business-Level Expectations and Uncertainty

Steven J. DAVIS, Nicholas A. BLOOM, Lucia FOSTER, Brian LUCKING, Scott OHLMACHER, Itay SAPORTA-EKSTEN
The Census Bureau’s 2015 Management and Organizational Practices Survey (MOPS) utilized innovative methodology to collect five-point forecast distributions over own future shipments, employment, and capital and materials expenditures for 35,000 U.S. manufacturing plants. First and second moments o...
Keywords: Subjective Forecast Distributions, business-level uncertainty, forecast quality
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Senior Fellows/Fellows

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Senior Fellows/Fellows

Business Groups and Employment

Mara FACCIO, William OBRIEN
Using a newly assembled 50 country firm-level database spanning 19 years, we document that business group affiliated firms display substantially less pronounced fluctuations in employment than unaffiliated firms in response to economic shocks. The results are robust to a variety of tests designed to...
Keywords: business groups, Employment, Business Cycles
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