Professor Dimitris Petmezas' Outputs (29)

Local boy does good: The effect of CSR activities on firm value (2025)
Journal Article
Lei, Z., Petmezas, D., Rau, P. R., & Yang, C. (online). Local boy does good: The effect of CSR activities on firm value. Journal of Banking and Finance, https://doi.org/10.1016/j.jbankfin.2025.107398

We examine the relation between home CEOs and corporate social responsibility (CSR). Our analysis shows home CEOs are associated with higher CSR engagement and increased firm value. These firms exhibit higher asset turnover, lower cost of equity, imp... Read More about Local boy does good: The effect of CSR activities on firm value.

Born to Behave: Home CEOs and Financial Misconduct (2024)
Journal Article
Lei, Z., Petmezas, D., Rau, P. R., & Yang, C. (in press). Born to Behave: Home CEOs and Financial Misconduct. Review of Accounting Studies,

We examine the association between CEO birthplace proximity and financial misconduct. We find that CEOs managing firms near their birthplaces ("home CEOs") are associated with lower levels of financial misconduct compared to non-home CEOs. This assoc... Read More about Born to Behave: Home CEOs and Financial Misconduct.

Societal Equality Sentiment and Executive Compensation (2022)
Journal Article
Onal, B., Petmezas, D., & Xiong, N. (2022). Societal Equality Sentiment and Executive Compensation. Journal of Corporate Finance, 77, Article 102314. https://doi.org/10.1016/j.jcorpfin.2022.102314

Using elections that reveal changes in countries’ leniency on the left-right political spectrum, we examine whether societal sentiment regarding income inequality affects executive compensation. We find that elections that bring left-leaning (pro-equ... Read More about Societal Equality Sentiment and Executive Compensation.

The Effects of Terrorist Attacks on Inventor Productivity and Mobility (2022)
Journal Article
Fich, E. M., Nguyen, T., & Petmezas, D. (2023). The Effects of Terrorist Attacks on Inventor Productivity and Mobility. Research Policy, 52(1), Article 104655. https://doi.org/10.1016/j.respol.2022.104655

We investigate the impact of deadly terrorist attacks on inventor productivity and mobility in the U.S. During the five-year window after such events, nearby firms generate fewer and less impactful inventions. Moreover, their inventors typically exhi... Read More about The Effects of Terrorist Attacks on Inventor Productivity and Mobility.

Agency Costs of Debt and Inside Debt: The Role of CEO Overconfidence (2022)
Journal Article
Galariotis, E., Louca, C., Petmezas, D., & Wang, S. (2023). Agency Costs of Debt and Inside Debt: The Role of CEO Overconfidence. British Journal of Management, 34(3), 1606-1631. https://doi.org/10.1111/1467-8551.12661

This study extends our understanding of CEO inside debt compensation under an agency problem perspective by considering the impact of a behavioral trait, namely CEO overconfidence. Using a sample of US firms in Standard & Poor’s ExecuComp for the per... Read More about Agency Costs of Debt and Inside Debt: The Role of CEO Overconfidence.

Does Terrorism Affect Acquisitions? (2022)
Journal Article
Nguyen, T., Petmezas, D., & Karampatsas, N. (2023). Does Terrorism Affect Acquisitions?. Management Science, 69(7), 4134-4168. https://doi.org/10.1287/mnsc.2022.4506

Using terrorist attacks as an exogenous shock to uncertainty, we provide evidence that firms located near terrorism-stricken areas are less likely takeover targets for two years after the attack and receive lower acquisition premiums. The latter find... Read More about Does Terrorism Affect Acquisitions?.

Credit Ratings and Acquisitions (2021)
Journal Article
Aktas, N., Petmezas, D., Servaes, H., & Karampatsas, N. (2021). Credit Ratings and Acquisitions. Journal of Corporate Finance, 69, Article 101986. https://doi.org/10.1016/j.jcorpfin.2021.101986

There is a curvilinear relation between credit ratings and acquisitions. Non-investment grade firms make more acquisitions as their ratings improve, consistent with the relaxation of financial constraints. However, this pattern reverses for investmen... Read More about Credit Ratings and Acquisitions.

Selling to buy: Asset sales and acquisitions (2020)
Journal Article
Mavis, C. P., McNamee, N. P., Petmezas, D., & Travlos, N. G. (2020). Selling to buy: Asset sales and acquisitions. Journal of Corporate Finance, 62, Article 101587. https://doi.org/10.1016/j.jcorpfin.2020.101587

This study explores the impact of joint corporate asset restructuring decisions, where firms sell an asset in order to fund a subsequent acquisition (selling-to-buy). We find that firms with asset sales are associated with increased acquisition proba... Read More about Selling to buy: Asset sales and acquisitions.

CEO overconfidence and the value of corporate cash holdings (2018)
Journal Article
Aktas, N., Louca, C., & Petmezas, D. (2019). CEO overconfidence and the value of corporate cash holdings. Journal of Corporate Finance, 54, 85-106. https://doi.org/10.1016/j.jcorpfin.2018.11.006

Cash holding is on average more valuable when firms are managed by overconfident CEOs. Economically, having an overconfident CEO on board is associated with an increase of $0.28 in the value of $1.00 cash holding. The positive effect of CEO overconfi... Read More about CEO overconfidence and the value of corporate cash holdings.

The role of corporate political strategies in M&As (2017)
Journal Article
Croci, E., Pantzalis, C., Park, J. C., & Petmezas, D. (2017). The role of corporate political strategies in M&As. Journal of Corporate Finance, 43, 260-287. https://doi.org/10.1016/j.jcorpfin.2017.01.009

In line with the view that politics can complicate M&A deals, we find that firms contributing to political action committees or involved in lobbying are less likely to be acquired and their takeover process is lengthier. As we empirically show, this... Read More about The role of corporate political strategies in M&As.

Governance mandates, outside directors, and acquirer performance (2016)
Journal Article
Dahya, J., Golubov, A., Petmezas, D., & Travlos, N. G. (2019). Governance mandates, outside directors, and acquirer performance. Journal of Corporate Finance, 59, 218-238. https://doi.org/10.1016/j.jcorpfin.2016.11.005

We use hand-collected board data around the issuance of two distinct government-led board structure mandates in the U.K. to establish the effect of outside directors on acquirer performance. Increases in outside director representation are associated... Read More about Governance mandates, outside directors, and acquirer performance.

Do Stock-Financed Acquisitions Destroy Value? New Methods and Evidence (2015)
Journal Article
Golubov, A., Petmezas, D., & Travlos, N. G. (2016). Do Stock-Financed Acquisitions Destroy Value? New Methods and Evidence. Review of Finance, 20(1), 161-200. https://doi.org/10.1093/rof/rfv009

We contribute to the debate on whether stock-financed acquisitions destroy value for shareholders. A stock-financed acquisition is a joint takeover/equity-issue event. Using seasoned equity offering announcement returns, we estimate through linear pr... Read More about Do Stock-Financed Acquisitions Destroy Value? New Methods and Evidence.

Do risk-taking incentives induce CEOs to invest? Evidence from acquisitions (2015)
Journal Article
Croci, E., & Petmezas, D. (2015). Do risk-taking incentives induce CEOs to invest? Evidence from acquisitions. Journal of Corporate Finance, 32, 1-23. https://doi.org/10.1016/j.jcorpfin.2015.03.001

This paper examines the effect of risk-taking incentives on acquisition investments. We find that CEOs with risk-taking incentives are more likely to invest in acquisitions. Economically, an inter-quartile range increase in vega translates into an ap... Read More about Do risk-taking incentives induce CEOs to invest? Evidence from acquisitions.

Is working capital management value-enhancing? Evidence from firm performance and investments (2014)
Journal Article
Aktas, N., Croci, E., & Petmezas, D. (2015). Is working capital management value-enhancing? Evidence from firm performance and investments. Journal of Corporate Finance, 30, 98-113. https://doi.org/10.1016/j.jcorpfin.2014.12.008

We examine the value effect of working capital management (WCM) for a large sample of US firms between 1982–2011. Our results indicate (i) the existence of an optimal level of working capital policy; and (ii) firms that converge to that optimal level... Read More about Is working capital management value-enhancing? Evidence from firm performance and investments.

Investor induced contagion during the banking and European sovereign debt crisis of 2007–2012: Wealth effect or portfolio rebalancing? (2014)
Journal Article
Petmezas, D., & Santamaria, D. (2014). Investor induced contagion during the banking and European sovereign debt crisis of 2007–2012: Wealth effect or portfolio rebalancing?. Journal of International Money and Finance, 49, 401-424. https://doi.org/10.1016/j.jimonfin.2014.06.005

This study investigates the way a crisis spreads within a country and across borders by testing the investor induced contagion hypothesis through the liquidity channel on stock-bond relationships of the US and five European countries before and durin... Read More about Investor induced contagion during the banking and European sovereign debt crisis of 2007–2012: Wealth effect or portfolio rebalancing?.

Credit ratings and the choice of payment method in mergers and acquisitions (2014)
Journal Article
Karampatsas, N., Petmezas, D., & Travlos, N. G. (2014). Credit ratings and the choice of payment method in mergers and acquisitions. Journal of Corporate Finance, 25, 474-493. https://doi.org/10.1016/j.jcorpfin.2014.01.008

This paper establishes that credit ratings affect the choice of payment method in mergers and acquisitions. We find that bidders holding a high rating level are more likely to use cash financing in a takeover. We attribute this finding to lower finan... Read More about Credit ratings and the choice of payment method in mergers and acquisitions.

Empirical M&A Research: A Review of Methods, Evidence and Managerial Implications (2013)
Book Chapter
Golubov, A., Petmezas, D., & Travlos, N. G. (in press). Empirical M&A Research: A Review of Methods, Evidence and Managerial Implications. In A. R. Bell, C. Brooks, & M. Prokopczuk (Eds.), Handbook of Research Methods and Applications in Empirical Finance. Edward Elgar, Cheltenham, UK. https://doi.org/10.4337/9780857936097

What are the Causes and Effects of the M&As? The UK Evidence (2012)
Journal Article
Guo, J. (., & Petmezas, D. (2012). What are the Causes and Effects of the M&As? The UK Evidence. Multinational finance journal, 16(1/2), 21-47. https://doi.org/10.17578/16-1/2-2

This paper examines the link between the causes and effects of mergers and acquisitions. By using a sample of UK acquisitions, which have the distinct characteristics of limited use of stock as means of payment and dominance of private acquisitions,... Read More about What are the Causes and Effects of the M&As? The UK Evidence.

When It Pays to Pay Your Investment Banker: New Evidence on the Role of Financial Advisors in M&As (2012)
Journal Article
Golubov, A., Petmezas, D., & Travlos, N. G. (2012). When It Pays to Pay Your Investment Banker: New Evidence on the Role of Financial Advisors in M&As. Journal of Finance, 67(1), 271-312. https://doi.org/10.1111/j.1540-6261.2011.01712.x

We provide new evidence on the role of financial advisors in M&As. Contrary to prior studies, top-tier advisors deliver higher bidder returns than their non-top-tier counterparts but in public acquisitions only, where the advisor reputational exposur... Read More about When It Pays to Pay Your Investment Banker: New Evidence on the Role of Financial Advisors in M&As.

Forecasting Tourist Arrivals in Greece and the Impact of Macroeconomic Shocks from the Countries of Tourists’ Origin (2011)
Journal Article
Gounopoulos, D., Petmezas, D., & Santamaria, D. (2012). Forecasting Tourist Arrivals in Greece and the Impact of Macroeconomic Shocks from the Countries of Tourists’ Origin. Annals of Tourism Research, 39(2), 641-666. https://doi.org/10.1016/j.annals.2011.09.001

This paper generates short-term forecasts on tourist arrivals in Greece and performs impulse response analysis to measure the impact of macroeconomic shocks from the origin country on future tourism demand. We find the ARIMA (1, 1, 1) model outperfor... Read More about Forecasting Tourist Arrivals in Greece and the Impact of Macroeconomic Shocks from the Countries of Tourists’ Origin.