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All Outputs (34)

Technology Rhetoric and Institutional Ownership (2024)
Journal Article
Andreou, P. C., Drivas, K., Philip, D., & Wood, G. (in press). Technology Rhetoric and Institutional Ownership. Cambridge Journal of Economics,

This paper compares actual R&D spend with the managerial rhetoric around technology and innovation contained within corporate disclosures of publicly-listed U.S. firms. We find that, whilst actual R&D spend and patents do not entice institutional inv... Read More about Technology Rhetoric and Institutional Ownership.

Extremal quantiles and stock price crashes (2023)
Journal Article
Andreou, P., Anyfantaki, S., Maasoumi, E., & Sala, C. (2023). Extremal quantiles and stock price crashes. Econometric Reviews, https://doi.org/10.1080/07474938.2023.2241223

We employ extreme value theory to identify stock price crashes, featuring low-probability events that produce large, idiosyncratic negative outliers in the conditional distribution. Traditional methods employ approximations under Gaussian assumptions... Read More about Extremal quantiles and stock price crashes.

A critique of the agency theory viewpoint of stock price crash risk: The opacity and overinvestment channels (2022)
Journal Article
Andreou, P. C., Lambertides, N., & Magidou, M. (2023). A critique of the agency theory viewpoint of stock price crash risk: The opacity and overinvestment channels. British Journal of Management, 34(4), 2158-2185. https://doi.org/10.1111/1467-8551.12693

This study documents a puzzling historical trend in crash risk for US-listed firms: between 1950 and 2019, the firm-year occurrences of idiosyncratic stock price crashes rose from 5.5% to an astonishing 27%. The vastness of the literature notoriously... Read More about A critique of the agency theory viewpoint of stock price crash risk: The opacity and overinvestment channels.

Dispersion in options investors' versus analysts' expectations: Predictive inference for stock returns (2021)
Journal Article
Andreou, P., Kagkadis, A., Maio, P., & Philip, D. (2021). Dispersion in options investors' versus analysts' expectations: Predictive inference for stock returns. Critical finance review, 10(1), 65-81. https://doi.org/10.1561/104.00000091

We create a market-wide measure of dispersion in options investors' expectations by aggregating across all stocks the dispersion in trading volume across moneynesses (DISP). DISP exhibits strong negative predictive power for future market returns and... Read More about Dispersion in options investors' versus analysts' expectations: Predictive inference for stock returns.

Institutional ownership and firms’ thrust to compete (2021)
Journal Article
Andreou, P. C., Fiordelisi, F., Harris, T., & Philip, D. (2022). Institutional ownership and firms’ thrust to compete. British Journal of Management, 33(3), 1346-1370. https://doi.org/10.1111/1467-8551.12496

This article provides evidence on the impact of transient (short-term) institutional investors on a firm’s thrust to compete. A firm’s thrust to compete, as an attribute of corporate culture, captures the relative importance of corporate values that... Read More about Institutional ownership and firms’ thrust to compete.

Financial Distress Risk and Stock Price Crashes (2021)
Journal Article
Andreou, C. K., Andreou, P. C., & Lambertides, N. (2021). Financial Distress Risk and Stock Price Crashes. Journal of Corporate Finance, 67, Article 101870. https://doi.org/10.1016/j.jcorpfin.2020.101870

This study uses 462,678 monthly observations of US-listed firms for the period 1990–2018 to document a strong positive relationship between short-term changes in financial distress risk and future stock price crashes. This result is economically sign... Read More about Financial Distress Risk and Stock Price Crashes.

Financial literacy and its influence on internet banking behaviour (2020)
Journal Article
Andreou, P. C., & Anyfantaki, S. (2021). Financial literacy and its influence on internet banking behaviour. European Management Journal, 39(5), 658-674. https://doi.org/10.1016/j.emj.2020.12.001

This paper presents the survey results for financial literacy among Cypriot adults and reports their financial aptitude and behaviour. Additionally, it investigates for the first time the implications of financial literacy on respondents’ usage of di... Read More about Financial literacy and its influence on internet banking behaviour.

Measuring firms' market orientation using textual analysis of 10-K filings (2020)
Journal Article
Andreou, P., Harris, T., & Philip, D. (2020). Measuring firms' market orientation using textual analysis of 10-K filings. British Journal of Management, 31(4), 8725-895. https://doi.org/10.1111/1467-8551.12391

Market‐oriented firms are committed to understanding their customers’ evolving expectations and meeting their needs, while outwitting competitors, to achieve a sustainable competitive advantage and improve performance. This paper develops a measure f... Read More about Measuring firms' market orientation using textual analysis of 10-K filings.

Corporate Environmental Proactivity: Evidence from the European Union’s Emissions Trading System (2020)
Journal Article
Andreou, P., & Kellard, N. (2021). Corporate Environmental Proactivity: Evidence from the European Union’s Emissions Trading System. British Journal of Management, 32(3), 630-647. https://doi.org/10.1111/1467-8551.12356

In the presence of environmental policy, how do regulated firms respond? The answer is crucial for the design and effectiveness of policy regimes intended to mitigate environmental damage. We investigate whether particular types of firms are more lik... Read More about Corporate Environmental Proactivity: Evidence from the European Union’s Emissions Trading System.

Financial literacy and its influence on consumers’ internet banking behaviour (2019)
Preprint / Working Paper
Andreou, P. C., & Anyfantaki, S. (2019). Financial literacy and its influence on consumers’ internet banking behaviour

This study examines the level and antecedents of financial literacy and investigates its influence on consumers’ internet banking behaviour. The focus is on Cyprus, a country that experienced an unprecedented financial crisis in 2013 that caused an e... Read More about Financial literacy and its influence on consumers’ internet banking behaviour.

The information content of forward moments (2019)
Journal Article
Andreou, P., Kagkadis, A., Philip, D., & Taamouti, A. (2019). The information content of forward moments. Journal of Banking and Finance, 106, 527-541. https://doi.org/10.1016/j.jbankfin.2019.07.021

We estimate the term structures of risk-neutral forward variance and skewness, and examine their predictive power for equity market excess returns and variance. We use Partial Least Squares to extract a single predictive factor from each term structu... Read More about The information content of forward moments.

Valuation Effects of Overconfident CEOs on Corporate Diversification and Refocusing Decisions (2019)
Journal Article
Andreou, P. C., Doukas, J. A., Koursaros, D., & Louca, C. (2019). Valuation Effects of Overconfident CEOs on Corporate Diversification and Refocusing Decisions. Journal of Banking and Finance, 100, 182-204. https://doi.org/10.1016/j.jbankfin.2019.01.009

This study presents a theoretical model that links chief executive officer (CEO) overconfidence to the value loss of corporate diversification. Consistent with the model's prediction, the findings show that diversified firms run by overconfident CEOs... Read More about Valuation Effects of Overconfident CEOs on Corporate Diversification and Refocusing Decisions.

Financial knowledge among university students and implications for personal debt and fraudulent investments (2018)
Journal Article
Andreou, P., & Philip, D. (2018). Financial knowledge among university students and implications for personal debt and fraudulent investments. Cyprus economic policy review, 12(2), 3-23

The study is the first attempt to examine financial literacy, financial aptitude and behaviour among university students in Cyprus. The student survey covers 881 Cypriot students, aged mostly 18-24, across the five biggest universities in Cyprus. The... Read More about Financial knowledge among university students and implications for personal debt and fraudulent investments.

Managerial overconfidence and the buyback anomaly (2018)
Journal Article
Andreou, P., Cooper, I., García de Olalla, I., & Louca, C. (2018). Managerial overconfidence and the buyback anomaly. Journal of Empirical Finance, 49, 142-156. https://doi.org/10.1016/j.jempfin.2018.09.005

While positive, long-run abnormal returns following share repurchaseannouncements are substantially lower when CEOs are overconfident. This effect is particularly strong for (i) difficult to value firms, such as small, young, non-dividend paying, dis... Read More about Managerial overconfidence and the buyback anomaly.

Differences in options investors' expectations and the cross-section of stock returns (2018)
Journal Article
Andreou, P., Kagkadis, A., Philip, D., & Tuneshev, T. (2018). Differences in options investors' expectations and the cross-section of stock returns. Journal of Banking and Finance, 94, 315-336. https://doi.org/10.1016/j.jbankfin.2018.07.016

We provide strong evidence that the dispersion of individual stock options trading volume across moneynesses (IDISP) contains valuable information about future stock returns. Stocks with high IDISP consistently underperform those with low IDISP by mo... Read More about Differences in options investors' expectations and the cross-section of stock returns.

CEO duality, agency costs, and internal capital allocation efficiency (2018)
Journal Article
Aktas, N., Andreou, P., Karasamani, I., & Philip, D. (2019). CEO duality, agency costs, and internal capital allocation efficiency. British Journal of Management, 30(2), 473-493. https://doi.org/10.1111/1467-8551.12277

This study examines the impact of CEO duality on firms’ internal capital allocation efficiency. We observe that when the CEO is also chair of the board, diversified firms make inefficient investments, as they allocate more capital to business segment... Read More about CEO duality, agency costs, and internal capital allocation efficiency.

The impact of managerial ability on crisis-period corporate investment (2017)
Journal Article
Andreou, P., Karasamani, I., Louca, C., & Ehrlich, D. (2017). The impact of managerial ability on crisis-period corporate investment. Journal of Business Research, 79, 107-122. https://doi.org/10.1016/j.jbusres.2017.05.022

In this study, we document a strong positive relation between pre-crisis managerial ability and corporate investment during the crisis period, which remains robust in the presence of a large array of control variables capturing corporate governance a... Read More about The impact of managerial ability on crisis-period corporate investment.

Bank loan loss accounting treatments, credit cycles and crash risk (2017)
Journal Article
Andreou, P., Cooper, I., Louca, C., & Philip, D. (2017). Bank loan loss accounting treatments, credit cycles and crash risk. The British Accounting Review, 49(5), 474-492. https://doi.org/10.1016/j.bar.2017.03.002

Banks that follow conditional conservatism in their loan loss accounting treatments benefit from a reduction in crash risk. The key discretionary loan loss accounting channels are provisions and allowances. We show that conditional conservatism reduc... Read More about Bank loan loss accounting treatments, credit cycles and crash risk.

CEO Age and Stock Price Crash Risk (2016)
Journal Article
Andreou, P., Christodoulos, L., & Andreas, P. (2017). CEO Age and Stock Price Crash Risk. Review of Finance, 21(3), 1287-1325. https://doi.org/10.1093/rof/rfw056

We show that firms with younger CEOs are more likely to experience stock price crashes, including crashes caused by revelation of negative news in the form of breaks in strings of consecutive earnings increases. Such strings are accompanied by large... Read More about CEO Age and Stock Price Crash Risk.