skip to content

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: Oracles of the Vote: Predicting the Outcomes of Proxy Contests (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contest announcements is associated with higher likelihood of the subsequently settled or voted contests, as opposed to withdrawn contests.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.

Project Update - August 2023