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Articles 1 - 7 of 7
Full-Text Articles in Business
On The Compensation And Activity Of Corporate Boards, Nga Nguyen
On The Compensation And Activity Of Corporate Boards, Nga Nguyen
Finance Faculty Research and Publications
Within the nexus of contracts that makes up the firm, relatively little is known about the relationship between firms and their directors. Using a unique dataset comprising director compensation and activity, I find that firms use meeting fees and equity-based compensation as substitutes. In addition, paying directors for attending board/committee meetings is associated with more active boards and more active monitoring and advising committees. In contrast, a higher proportion of equity-based compensation is positively associated with monitoring activity but negatively associated with advising activity. Furthermore, more active boards and committees are paid more. Finally, I find that the variation in …
Investor Behavior In The Mutual Fund Industry: Evidence From Gross Flows, George D. Cashman, Federico Nardari, Daniel N. Deli, Sriram V. Villupuram
Investor Behavior In The Mutual Fund Industry: Evidence From Gross Flows, George D. Cashman, Federico Nardari, Daniel N. Deli, Sriram V. Villupuram
Finance Faculty Research and Publications
Using a large sample of monthly gross flows from 1997 to 2003, we uncover several previously undocumented regularities in investor behavior. First, investor purchases and sales produce fund-level gross flows that are highly persistent. Persistence in fund flows dominates performance as a predictor of future fund flows. More importantly, failing to account for flow persistence leads to incorrect inferences with respect to the relation between performance and flows. Second, we document that investors react differently to performance depending on the type of fund, and that investor trading activity produces meaningful differences in the persistence of fund flows across mutual fund …
Measuring The Impact Of Agglomeration On Productivity: Evidence From Chilean Retailers, Sergio Garate, Anthony Pennington-Cross
Measuring The Impact Of Agglomeration On Productivity: Evidence From Chilean Retailers, Sergio Garate, Anthony Pennington-Cross
Finance Faculty Research and Publications
This research extends the agglomeration literature to a country that has not been studied and a market sector that has received little attention. The majority of research that examines how density affects productivity has indirectly measured productivity through worker wages or property prices. The research uses individual supermarkets’ store productivity, proxied by 10 years of annual sales per square foot. Studying supermarkets permits the examination of the effect consumers might have on productivity. Agglomerations (density) could increase or decrease productivity depending on the relative extent of increased competition versus productivity gains, as consumers choose where to shop based on their …
The Information Content Of Option Ratios, Benjamin M. Blau, Nga Nguyen, Ryan J. Whitby
The Information Content Of Option Ratios, Benjamin M. Blau, Nga Nguyen, Ryan J. Whitby
Finance Faculty Research and Publications
A broad stream of research shows that information flows into underlying stock prices through the options market. For instance, prior research shows that both the Put–Call Ratio (P/C) and the Option-to-Stock Volume Ratio (O/S) predict negative future stock returns. In this paper, we compare the level of information contained in these two commonly used option volume ratios. First, we find that P/C ratios contain more predictability about future stock returns at the daily level than O/S ratios. Second, in contrast to our first set of results, O/S ratios contain more predictability about future returns at the weekly and monthly levels …
Differential Impacts Of Structural And Cyclical Unemployment On Mortgage Default And Prepayment, Roberto G. Quercia, Anthony Pennington-Cross, Chao Yue Tian
Differential Impacts Of Structural And Cyclical Unemployment On Mortgage Default And Prepayment, Roberto G. Quercia, Anthony Pennington-Cross, Chao Yue Tian
Finance Faculty Research and Publications
The Great Recession (the fourth quarter of 2007 through the second quarter of 2009) has been characterized by high rates of foreclosures and unemployment. Using a sample of community reinvestment loans, we examine the impact of structural unemployment and cyclical unemployment on mortgage terminations (default and prepayment). We find that mortgage default and prepayment are more sensitive to changes in the structural component of the local unemployment rate than in the cyclical component. In addition, depending on whether structural unemployment rates are high or low, borrowers and lenders react differently to the incentives to terminate a loan.
Advisor Choice In Asia-Pacific Property Markets, George D. Cashman, David M. Harrison, Michael J. Seiler
Advisor Choice In Asia-Pacific Property Markets, George D. Cashman, David M. Harrison, Michael J. Seiler
Finance Faculty Research and Publications
This paper examines advisor choice decisions by publicly traded REITs and listed property companies in Asia-Pacific real estate markets. Using a sample of 168 firms, we find robust evidence that firms strategically evaluate and compare the increased agency costs associated with external advisement against the potential benefits associated with collocating decision rights with location specific soft information. Our empirical results reveal real estate companies tend to hire external advisors when they invest in countries: 1) that are more economically and politically unstable, 2) whose legal system is based on civil law, 3) where the level of corruption is perceived to …
The Flash Crash: An Examination Of Shareholder Wealth And Market Quality, Thomas J. Boulton, Marcus V. Braga-Alves, Manoj Kulchania
The Flash Crash: An Examination Of Shareholder Wealth And Market Quality, Thomas J. Boulton, Marcus V. Braga-Alves, Manoj Kulchania
Finance Faculty Research and Publications
We investigate stock returns, market quality, and options market activity around the flash crash of May 6, 2010. Abnormal returns are negative on the day of and the day after the flash crash for stocks that had trades that executed during the crash subsequently cancelled by either Nasdaq or NYSE Arca. Consistent with studies that suggest that other sources of liquidity withdrew from the markets during the flash crash, we find that the fraction of trades executed by the NYSE increases during this volatile period. Market quality deteriorates following the flash crash as bid-ask spreads increase and quote depths decrease. …