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Finance and Financial Management Commons™

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2010

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Institution
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Articles 271 - 278 of 278

Full-Text Articles in Finance and Financial Management

Essays On The Effect Of Financial Institution’S Dual Holdings Of Debt And Equity Securities, Jiun-Lin Chen Jan 2010

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 …

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Public Policy And Saving For Retirement: The “Autosave” Features Of The Pension Protection Act Of 2006, John Beshears, James Choi, David Laibson, Brigitte C. Madrian, Brian Weller Jan 2010

Public Policy And Saving For Retirement: The “Autosave” Features Of The Pension Protection Act Of 2006, John Beshears, James Choi, David Laibson, Brigitte C. Madrian, Brian Weller

Faculty Publications

On August 17, 2006, President Bush signed the Pension Protection Act of 2006 (PPA) into law, following its passage by both houses of Congress in a strong showing of bipartisan support.1 This law, heralded by some as the most sweeping piece of pension reform legislation since the Employee Retirement Income and Security Act of 1974 (ERISA), contains many different pension reform provisions.2 In this paper, we focus on a subset of measures within the PPA adopted specifically to promote better savings outcomes in defined contribution savings plans.

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Why Do Firms Go Public?, James C. Brau Jan 2010

Why Do Firms Go Public?, James C. Brau

Faculty Publications

Why entrepreneurs choose to conduct an IPO has received relatively little attention when compared to other IPO topics such as initial underpricing and the long-run performance of IPOs. In this chapter, I summarize, analyze, and expand the current discussion on why firms go public. I begin by discussing the theoretical underpinnings and testable hypotheses offered thus far in the academic literature. I then discuss the empirical evidence for (and against) each of these potential explanations after presenting the intuition behind them. I focus on two types of empirical research: a) large-sample publicly-available financial and stock data and b) proprietary surveydata. …

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Dual-Track Versus Single-Track Sell-Outs: An Empirical Analysis Of Competing Harvest Strategies, James C. Brau, Ninon K. Sutton, Nile W. Hatch Jan 2010

Dual-Track Versus Single-Track Sell-Outs: An Empirical Analysis Of Competing Harvest Strategies, James C. Brau, Ninon K. Sutton, Nile W. Hatch

Faculty Publications

We investigate two non-traditional harvest strategies for selling a privately-held company. Dual-track private firms file for an IPO while also courting acquirers. These firms withdraw the IPO to be taken over. Dual-track public firms complete an IPO and are taken over shortly thereafter. Examining 679 takeovers from 1995–2004, we find private dual-track sell-outs earn a 22–26% higher premium and dual-track public sell-outs earn an 18–21% higher premium than single-track sell-outs. Larger, VC-backed, prestigious underwritten, and bubble-year firms have a higher propensity to take the dual-track path. The implication is that entrepreneurs may increase their harvest value by using a dual-track …

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Micro-Ipos: An Analysis Of The Small Corporate Offering Registration (Scor) Procedure With National Data, James C. Brau, Gardner Gee Jan 2010

Micro-Ipos: An Analysis Of The Small Corporate Offering Registration (Scor) Procedure With National Data, James C. Brau, Gardner Gee

Faculty Publications

In this study we examine every Small Corporate Offering Registration available from the United States. Using 339 micro-IPOs from 33 states, we find support for the relevance of (1) offering marketing mechanisms and expenses; (2) geographic characteristics; (3) offering characteristics; (4) ownership and governance characteristics; (5) business characteristics; (6) firm marketing mechanisms; and (7) signaling factors.

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Regulatory Reform And Convergence In Banking: The Case Of China, James C. Brau, Drew Dahl, Hongjing Zhang, Mingming Zhou Jan 2010

Regulatory Reform And Convergence In Banking: The Case Of China, James C. Brau, Drew Dahl, Hongjing Zhang, Mingming Zhou

Faculty Publications

We examine the effect of regulatory reform on the asset allocation and capitalization of Chinese banks, 2002 to 2007, a period following China’s entry into the World Trade Organization (WTO). Our empirical evidence rejects the hypothesis that banks in the Big Four, majority state, majority private, and majority foreign categories have common targeted levels of loans and capital in relation to assets. With respect to rates of adjustment towards those targets, our evidence is mixed. Domestic banks exhibit convergence in behavior toward each other but remain distinct from majority foreign banks. Overall, our findings provide evidence that, while the structure …

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The Impact Of 401(K) Loans On Saving, John Beshears, James J. Choi, David Laibson, Brigitte C. Madrian Jan 2010

The Impact Of 401(K) Loans On Saving, John Beshears, James J. Choi, David Laibson, Brigitte C. Madrian

Faculty Publications

Although the popular press and politicians often describe 401(k) loans as a problem, classical economic theory has a more benign view. Loans from a 401(k) can relax liquidity constraints and increase household utility. Moreover, loan provisions may have the subtle effect of raising net asset accumulation by making 401(k) participation more appealing: employees who can access their 401(k) assets if they need them may be willing to put more money into an otherwise illiquid 401(k) account. Our research suggests that 401(k) loans are neither a blessing nor a bogeyman. Conditional on borrowing to finance consumption, we show that a 401(k) …

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A Stakeholder Identity Orientation Approach To Corporate Social Performance In Family Firms, John B. Bingham, W. Gibb Dyer Jr., Isaac Smith, Gregory L. Adams Jan 2010

A Stakeholder Identity Orientation Approach To Corporate Social Performance In Family Firms, John B. Bingham, W. Gibb Dyer Jr., Isaac Smith, Gregory L. Adams

Faculty Publications

Extending the dialogue on corporate social performance (CSP) as descriptive stakeholder management (Clarkson, Acad Manage Rev 20:92, 1995), we examine differences in CSP activity between family and nonfamily firms. We argue that CSP activity can be explained by the firm’s identity orientation toward stakeholders (Brickson, Admin Sci Quart 50:576, 2005; Acad Manage Rev 32:864, 2007). Specifically, individualistic, relational, or collectivistic identity orientations can describe a firm’s level of CSP activity toward certain stakeholders. Family firms, we suggest, adopt a more relational orientation toward their stakeholders than nonfamily firms, and thus engage in higher levels of CSP. Further, we invoke collectivistic …

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