The Experts below are selected from a list of 61899 Experts worldwide ranked by ideXlab platform
Rudiger Fahlenbrach - One of the best experts on this subject based on the ideXlab platform.
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founder ceos Investment decisions and stock market performance
Journal of Financial and Quantitative Analysis, 2009Co-Authors: Rudiger FahlenbrachAbstract:Eleven percent of the largest public U.S. firms are headed by the CEO who founded the firm. Founder-CEO firms differ systematically from successor-CEO firms with respect to firm valuation, Investment Behavior, and stock market performance. Founder-CEO firms invest more in research and development, have higher capital expenditures, and make more focused mergers and acquisitions. An equal-weighted Investment strategy that had invested in founder-CEO firms from 1993 to 2002 would have earned a benchmark-adjusted return of 8.3% annually. The excess return is robust; after controlling for a wide variety of firm characteristics, CEO characteristics, and industry affiliation, the abnormal return is still 4.4% annually. The implications of the Investment Behavior and stock market performance of founder-CEO firms are discussed.
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founder ceos Investment decisions and stock market performance
Social Science Research Network, 2007Co-Authors: Rudiger FahlenbrachAbstract:Eleven percent of the largest public U.S. firms are headed by the CEO who founded the firm. Founder-CEO firms differ systematically from successor-CEO firms with respect to firm valuation, Investment Behavior, and stock market performance. Founder-CEO firms invest more in RD after controlling for a wide variety of firm characteristics, CEO characteristics, and industry affiliation, the abnormal return is still 4.4% annually. The implications of the Investment Behavior and stock market performance of founder-CEO led firms are discussed.
Henrik Schurmann - One of the best experts on this subject based on the ideXlab platform.
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till death or divorce do us part early life family disruption and Investment Behavior
Journal of Banking and Finance, 2021Co-Authors: Andre Betzer, Peter Limbach, Raghavendra P Rau, Henrik SchurmannAbstract:Abstract We document a long-lasting association between a common societal phenomenon, early-life family disruption, and Investment Behavior. Controlling for socioeconomic status and family background, we find fund managers who experienced the death or divorce of their parents during childhood exhibit a stronger disposition effect, take lower risk, and are more likely to sell their holdings following risk-increasing firm events. The results are consistent with persistent symptoms of post-traumatic stress and strengthen as treatment intensifies. The evidence adds to our understanding of the role of social factors and “nurture” in finance as well as the origin of Investment biases.
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till death or divorce do us part early life family disruption and Investment Behavior
Social Science Research Network, 2020Co-Authors: Andre Betzer, Peter Limbach, Raghavendra P Rau, Henrik SchurmannAbstract:We document a long-lasting association between a common societal phenomenon, early-life family disruption, and Investment Behavior. Fund managers who experienced the death or divorce of their parents during childhood take lower risk and are more likely to sell their holdings following risk-increasing firm events. They make smaller tracking errors, hold fewer lottery stocks, and show a stronger disposition effect. The results strengthen as treatment intensifies, i.e., when disruption occurred during formative years, when bereaved families had less social support, and after (unexpected) parental deaths. The evidence adds to our understanding of the role of social factors and “nurture” in finance.
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till death or divorce do us part early life family disruption and Investment Behavior
Research Papers in Economics, 2019Co-Authors: Andre Betzer, Peter Limbach, Raghavendra P Rau, Henrik SchurmannAbstract:We show a long-lasting association between a common societal phenomenon, early-life family disruption, and Investment Behavior. Fund managers who experienced the death or divorce of their parents during childhood take lower risk and are more likely to sell their holdings following riskincreasing firm events. They make smaller tracking errors, hold fewer lottery stocks, and show a stronger disposition effect. The results strengthen as treatment intensifies, i.e., when disruption occurred during formative years, when bereaved families had less social support, and after (unexpected) parental deaths. The evidence adds to our understanding of the role of social factors and "nurture" in finance.
Yannick Timmer - One of the best experts on this subject based on the ideXlab platform.
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cyclical Investment Behavior across financial institutions
Journal of Financial Economics, 2018Co-Authors: Yannick TimmerAbstract:Abstract This paper contrasts the Investment Behavior of different financial institutions in debt securities as a response to past returns. For identification, I use unique security-level data from the German Microdatabase Securities Holdings Statistics. Banks and Investment funds respond in a procyclical manner to past security-specific holding period returns. In contrast, insurance companies and pension funds act countercyclically; they buy when returns have been negative and sell after high returns. The heterogeneous responses can be explained by differences in their balance sheet structure. I exploit within-sector variation in the financial constraint to show that tighter constraints are associated with relatively more procyclical Investment Behavior.
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cyclical Investment behaviour across financial institutions
ECMI Papers, 2017Co-Authors: Yannick TimmerAbstract:This paper contrasts the Investment Behavior of different financial institutions in debt securities as a response to price changes. For identification, I use unique security-level data from the German Microdatabase Securities Holdings Statistics. Banks and Investment funds respond in a pro-cyclical manner to price changes. In contrast, insurance companies and pension funds act counter-cyclically; they buy after price declines and sell after price increases. The heterogeneous responses can be explained by differences in their balance sheet structure. I exploit within-sector variation in the financial constraint to show that tighter constraints are associated with relatively more pro-cyclical Investment Behavior.
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cyclical Investment Behavior across financial institutions
Social Science Research Network, 2016Co-Authors: Yannick TimmerAbstract:This paper examines the Investment Behavior of different financial institutions in debt securities with a particular focus on their response to price changes. For identification, I use security-level data from the German Microdatabase Securities Holdings Statistics. I find that banks and Investment funds respond in a pro-cyclical manner to price changes. In contrast, insurance companies and pension funds buy securities when their prices fall and sell securities when their prices rise. The pro-cyclical Investment Behavior of Investment funds and banks resulted in relatively mild losses on their security holdings during the sovereign debt crisis. Although insurance companies and pension funds suffered severe losses on their security holdings in the sovereign debt crisis, they outperformed banks and Investment funds in the medium term. The results suggest that the Investment Behavior of banks and Investment funds can exacerbate price dynamics and lead to excessive volatility on the capital markets. However, the Investment Behavior of insurance companies and pension funds can be a stabilizing force. Since my results suggest that institutions with impermanent balance sheet characteristics may exacerbate price dynamics, it is of crucial importance for financial stability to monitor the investor base of borrowers as well as the balance sheets of various investors.
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cyclical Investment Behavior across financial institutions
Research Papers in Economics, 2016Co-Authors: Yannick TimmerAbstract:This paper examines the Investment Behavior of different financial institutions in debt securities with a particular focus on their response to price changes. For identification, we use security-level data from the German Microdatabase Securities Holdings Statistics. Our results suggest that banks and Investment funds may destabilize the market by responding in a pro-cyclical manner to price changes. In contrast, insurance companies and pension funds buy securities when their prices fall and vice versa. While Investment funds and banks sell securities that are trading at a discount and whose prices are falling, they buy securities that are trading at premium and whose prices are rising. The opposite is the case for insurance companies and pension funds. This counter-cyclical Investment Behavior of insurance companies and pension funds may stabilize markets whenever prices have been pushed away from fundamentals. Since our results suggest that institutions with impermanent balance sheet characteristics may exacerbate price dynamics, it is of crucial importance for financial stability to monitor the investor base as well as the balance sheets of both levered and non-levered investors. JEL Classification: F32, G11, G15, G20
Alexander Zimper - One of the best experts on this subject based on the ideXlab platform.
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Investment Behavior under ambiguity the case of pessimistic decision makers
Mathematical Social Sciences, 2006Co-Authors: Alexander Ludwig, Alexander ZimperAbstract:We define pessimistic, respectively optimistic, investors as CEU (Choquet expected utility) decision makers who update their pessimistic, respectively optimistic, beliefs according to a pessimistic (Dempster-Shafer), respectively optimistic, update rule. This paper then demonstrates that, in contrast to optimistic investors, pessimistic investors may strictly prefer investing in an illiquid asset to investing in a liquid asset. Key to our result is the dynamic inconsistency of CEU decision making, implying that a CEU decision maker ex ante prefers a different strategy with respect to prematurely liquidating an uncertain long-term Investment project than after learning her liquidity needs. Investing in an illiquid asset then serves as a commitment device guaranteeing an ex ante favorable outcome.
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Investment Behavior under ambiguity the case of pessimistic decision makers
Social Science Research Network, 2005Co-Authors: Alexander Ludwig, Alexander ZimperAbstract:We define pessimistic, respectively optimistic, investors as CEU (Choquet expected utility) decision makers who update their pessimistic, respectively optimistic, capacities according to a pessimistic (Dempster-Shafer), respectively optimistic, update rule. We demonstrate that pessimistic rather than optimistic investors may strictly prefer investing in an illiquid asset to investing in a liquid asset. Key to our result is the dynamic inconsistency of CEU decision making, implying that a CEU decision maker ex ante prefers a different strategy with respect to prematurely liquidating an uncertain long-term Investment project than after learning her liquidity needs. Investing in an illiquid asset therefore serves as a commitment device that guarantees an ex ante favorable outcome. Comparing our results with the hyperbolic time-discounting approach, we further demonstrate that pessimistic decision makers may exhibit a stronger desire for intra-personal commitment than investors with hyperbolic discount functions.
Eric Zwick - One of the best experts on this subject based on the ideXlab platform.
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tax policy and abnormal Investment Behavior
Research Papers in Economics, 2020Co-Authors: Eric ZwickAbstract:This paper documents tax-minimizing Investment, in which firms tilt capital purchases toward fiscal year-end to reduce taxes. Between 1984 and 2013, average Investment in fiscal Q4 exceeds the average of fiscal Q1 through Q3 by 37%. Q4 spikes occur in the U.S. and internationally. Research designs using variation in firm tax positions and the 1986 Tax Reform Act show that tax minimization causes spikes. Spikes increase when firms face financial constraints or higher option values of waiting until fiscal year-end. We develop an Investment model with tax asymmetries to rationalize these patterns. Models without purchase-year, tax-minimization motives are unlikely to fit the data.
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tax policy and abnormal Investment Behavior
Social Science Research Network, 2020Co-Authors: Eric ZwickAbstract:This paper documents tax-minimizing Investment, in which firms tilt capital purchases toward fiscal year-end to reduce taxes. Between 1984 and 2013, average Investment in fiscal Q4 exceeds the average of fiscal Q1 through Q3 by 37%. Q4 spikes occur in the U.S. and internationally. Research designs using variation in firm tax positions and the 1986 Tax Reform Act show that tax minimization causes spikes. Spikes increase when firms face financial constraints or higher option values of waiting until fiscal year-end. We develop an Investment model with tax asymmetries to rationalize these patterns. Models without purchase-year, tax-minimization motives are unlikely to fit the data. Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.
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tax policy and heterogeneous Investment Behavior
The American Economic Review, 2017Co-Authors: Eric Zwick, James MahonAbstract:We estimate the effect of temporary tax incentives on equipment Investment using shifts in accelerated depreciation. Analyzing data for over 120,000 firms, we present three findings. First, bonus depreciation raised Investment in eligible capital relative to ineligible capital by 10.4% between 2001 and 2004 and 16.9% between 2008 and 2010. Second, small firms respond 95% more than big firms. Third, firms respond strongly when the policy generates immediate cash flows but not when cash flows only come in the future. This heterogeneity materially affects aggregate estimates and supports models in which financial frictions or fixed costs amplify Investment responses.
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tax policy and heterogeneous Investment Behavior
The American Economic Review, 2017Co-Authors: Eric Zwick, James E MahonAbstract:Abstract We estimate the effect of temporary tax incentives on equipment Investment using shifts in accelerated depreciation. Analyzing data for over 120,000 firms, we present three findings. First...
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tax policy and heterogeneous Investment Behavior
Social Science Research Network, 2016Co-Authors: Eric Zwick, James E MahonAbstract:We estimate the effect of temporary tax incentives on equipment Investment using shifts in accelerated depreciation. Analyzing data for over 120,000 firms, we present three findings. First, bonus depreciation raised Investment in eligible capital relative to ineligible capital by 10.4% between 2001 and 2004 and 16.9% between 2008 and 2010. Second, small firms respond 95% more than big firms. Third, firms respond strongly when the policy generates immediate cash flows but not when cash flows only come in the future. This heterogeneity materially affects aggregate estimates and supports models in which financial frictions or fixed costs amplify Investment responses.Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.
