Outputs (23)

Societal Equality Sentiment and Executive Compensation (2022)
Journal Article

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

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

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

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

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

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

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

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

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

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

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

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

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

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.

What are the Causes and Effects of the M&As? The UK Evidence (2012)
Journal Article

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

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

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.

Asymmetric Information and Target Firm Returns (2011)
Journal Article

This article examines the relationship between asymmetric information and target firm returns in mergers and acquisitions (M&As). We argue that if managers possess favourable (unfavourable) asymmetric information, they will offer, ceteris paribus, a... Read More about Asymmetric Information and Target Firm Returns.

Gains from Mergers and Acquisitions Around the World: New Evidence (2010)
Journal Article

Using a global M&A data set, this paper provides evidence that the empirical observations relating public acquisitions to, at best, zero abnormal returns, and their stock-financed subset to negative abnormal returns for acquiring firms around the dea... Read More about Gains from Mergers and Acquisitions Around the World: New Evidence.

Managerial Overconfidence in High and Low Valuation Markets and Gains to Acquisitions (2010)
Journal Article

In this paper we empirically investigate bidders' performance managed by overconfident and non-overconfident managers in high and low market valuation periods. Using a sample of UK acquisitions in the period 1990–2005, we provide evidence that the in... Read More about Managerial Overconfidence in High and Low Valuation Markets and Gains to Acquisitions.

Minority Shareholders’ Wealth Effects and Stock Market Development: Evidence from Increase-in-Ownership M&As (2009)
Journal Article

This paper examines, using a global M&A data set, the relationship between the target firm’s minority shareholders’ returns and a country’s stock market development in deals in which large shareholders increase their ownership stakes. For the purpose... Read More about Minority Shareholders’ Wealth Effects and Stock Market Development: Evidence from Increase-in-Ownership M&As.

What Drives Acquisitions? Market Valuations and Bidder Performance (2008)
Journal Article

Given the recent theoretical development that documents stock market misvaluations’ driven acquisition, this paper examines the relation between market valuations and bidder performance. We focus on hot stock markets and find that bidder reactions to... Read More about What Drives Acquisitions? Market Valuations and Bidder Performance.

Acquisitions, Overconfident Managers and Self-attribution Bias (2007)
Journal Article

We examine whether acquisitions by overconfident managers generate superior abnormal returns and whether managerial overconfidence stems from self-attribution. Self-attribution bias suggests that overconfidence plays a greater role in higher order ac... Read More about Acquisitions, Overconfident Managers and Self-attribution Bias.