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- Asia; ASEAN; Corruption; Economic Growth; Innovation; Institutional Quality (1)
- Economic policy (1)
- Institutional investors; corporate finance; corporate bankruptcy; stocks; organizational performance; stockholders; asset acquisitions; bankruptcies; bankrupt; net buyers (1)
- Organizational behavior (1)
Articles 1 - 2 of 2
Full-Text Articles in Business
Innovation And Institutional Quality On Economic Growth In Asia, Nguyen Tran-Nguyen
Innovation And Institutional Quality On Economic Growth In Asia, Nguyen Tran-Nguyen
Honors Projects in Economics
When looking at the different effects of institutional quality on economic development, namely control of corruption, there are two different hypotheses that explain such effects. One is the “grease the wheel” hypothesis, which predicts that corruption is beneficial for growth, and the other one is the “sand the wheel” hypothesis, which says the opposite. Corruption is normally blamed for the slow economic growths in some countries, but some Asian countries’ exponential growths have proven the “grease the wheel” hypothesis otherwise. The “Asian experience”1 phenomenon occurs when corruption does not seem to hamper business activities in some Asian countries. This research …
What Do Institutional Investors Know And Act On Before Almost Everyone Else: Evidence From Corporate Bankruptcies, Elena Precourt, Henry Oppenheimer
What Do Institutional Investors Know And Act On Before Almost Everyone Else: Evidence From Corporate Bankruptcies, Elena Precourt, Henry Oppenheimer
Accounting Department Faculty Journal Articles
We analyze investment behavior of institutional managers who hold and trade shares of firms that file for bankruptcy. We find that during the five-year period preceding a bankruptcy filing, institutional investors (except those managing investment companies) are net buyers with a positive abnormal net number of shares traded during the period. Institutional managers start to sell shares of bankrupt firms sooner in some firms than in others; these earlier sales are of smaller firms with weaker operating performance, and lower equity risk. We do not find evidence that institutional stockholders trade strategically and avoid material price declines before they occur.