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An Analysis Of The Effects Of The Probability Of Informed Trading (Pin) On Corporate Diversification Discount And Ceo Pay-Performance Sensitivity : Evidence From China, Man Jin

Theses & Dissertations

This thesis includes estimating the probability of informed trading, PIN, developed by Easley, Kiefer and O’Hara (1996, 1997a, 1997b), for a large sample of listed firms in China from 2002 to 2008, and I use PIN to explore two independent research questions in corporate finance.

First, the probability of informed trading is applied to explain the discount in value for firms with diversified business operations. Although aiming to increase firm value, the corporate diversification decision usually results in a firm value discount, for a variety of reasons, one of which is the transparency problem. My study directly tests the relation …

A Note On The Preferred Hedge Instrument, Arthur Hau

Hong Kong Institute of Business Studies Working Paper Series

Contrary to Battermann et al.'s (2000) claims, this paper shows that risk-averse exporters may produce less with fair commodity futures than with fair put options; moreover, they may prefer the latter instrument for hedging against its exchange rate risk.