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Three Essays On Stock Price Informativeness, Stock Price Momentum, And Firm Investment Efficiency, Chen Chen
Three Essays On Stock Price Informativeness, Stock Price Momentum, And Firm Investment Efficiency, Chen Chen
Theses and Dissertations in Business Administration
Scholarly studies documented that stock price informativeness plays a critical role in market efficiency. In this dissertation, we participate this stream of literature by investigating the effects of stock price informativeness on the magnitudes of stock price momentum and the outcomes of corporate merger and acquisition decisions.
Essay 1 explores the effect of stock price synchronicity on momentum. The momentum anomaly is widely attributed to investor cognitive biases, but the trigger of cognitive biases is largely unexplored. In this study, inspired by psychology studies linking cognitive biases to the noisiness of information, we examine whether momentum returns are associated with …
Three Essays On Ceo Traits, Corporate Investment Decisions, And Firm Value, Rongyao Zhang
Three Essays On Ceo Traits, Corporate Investment Decisions, And Firm Value, Rongyao Zhang
Theses and Dissertations in Business Administration
More and more research has shown that the characteristics of top executives, especially CEOs, affect organizational decisions and behaviors. This dissertation primarily focuses on the role of executives’ managerial ability played in firm investment decisions, such as mergers and acquisitions (M&As) and corporate social responsibility (CSR) investment, and firm value.
Essay 1 examines whether high-ability managers’ earnings smoothing is motivated by the need to mitigate the adverse effects of heightened information asymmetry triggered by M&As on managers’ reputation capital and firm value. I document that acquirers with high-ability managers engage in more pre-acquisition earnings smoothing and experience more significant announcement …