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Essays On The Effect Of Financial Institution’S Dual Holdings Of Debt And Equity Securities, Jiun-Lin Chen
Essays On The Effect Of Financial Institution’S Dual Holdings Of Debt And Equity Securities, Jiun-Lin Chen
LSU Doctoral Dissertations
This dissertation analyzes the effects on the stock markets when institutional investors hold their client firms’ stocks. The first essay examines the trading impact around earnings announcements and the second essay studies the effect on stock liquidity. In the first essay, we find that relationship institutions (that have lent/underwritten and hold shares of clients) support their clients when these client firms have negative earnings shocks. Their support not only mitigates the negative abnormal return around earnings announcements but also reduces the post-earnings-announcement-drift, thus, earnings momentum profits. In the second essay, we find that client firms held by relationship institutions suffer …
Three Essays On Corporate Acquisitions, Bidders' Liquidity, And Monitoring, Huihua Li
Three Essays On Corporate Acquisitions, Bidders' Liquidity, And Monitoring, Huihua Li
LSU Doctoral Dissertations
This dissertation consists of three essays on corporate acquisitions, bidders’ liquidity and monitoring. In the first essay, “Acquisitions and Bidders’ Liquidity: Evidence from Successful and Unsuccessful Takeovers”, I examine the impact of corporate acquisitions on bidders’ liquidity. I find that liquidity improves for bidders that complete the takeovers but remains unchanged or decreases for unsuccessful bidders. Takeovers of public firms result in similar liquidity improvements as do takeovers of private firms. Takeovers that use stock as the method of payment have significantly more improvement in liquidity than takeovers that use cash as the payment method. These results suggest that changes …