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Cambridge Endowment for Research in Finance (CERF)

 

Ting Yu (CJBS) 

Title of research proposal:How stock liquidity impacts firm innovation?

Innovation has long been of great interest to the academia given its importance for the firm-and national-level competitiveness. Innovation enhances firms’long-term competitive advantages (Porter, 1992)and is crucial to economic growth (Solow, 1957;Romer, 1990). Existing literature has shown that financial analysts (He and Tian, 2013), CEO connections (Faleye, Kovacs, and Venkateswaran, 2014), insider trading (Levine, Lin, and Wei, 2017), bank interventions (Gu, Mao, and Tian, 2017) and stock market liberalization (Moshirian, Tian, Zhang, and Zhang, 2019) affect firm innovation.

Project Update - August 2021

Project Update - April 2021

Title: Proxy Contests and the Value of Voting Right (with Scott Hirst and Oğuzhan Karakaş)

This paper examines proxy contests and the value of shareholder voting rights (i.e., voting premium) estimated using option prices. Our sample consists of 873 proxy contests for board seats from 1994 to 2017 where targets are U.S. publicly listed firms. We find that voting premium can help predict the outcomes of the proxy contests. Specifically, increased voting premiums around contest announcements is associated with higher likelihood of the subsequently settled or voted contests, as opposed to withdrawn contests. Further, the success of the dissidents achieving board seats at the voted contests increases with the voting premium around the record dates.

 

 

Latest news

PhD advisor and co-author of CERF post-doc Xinyu Hou wins Nobel Prize in Economics

11 October 2022

Philip H Dybvig from Washington University is (joint with Bernanke and Diamond) a recipient of this year’s Nobel Memorial Prize in Economic Sciences for his research on banks and financial crises. Prof. Dybvig is the former PhD advisor of Dr Xinyu Hou who is currently a post-doctoral researcher at the Cambridge Endowment...