Monthly Archives

January 2019

Student Seminar #2: Do Director Elections Matter?

Date Time Presenter Location
Monday, February 04, 2019

(15 Bahman 1397)

12:30 – 13:30 Peyman Shahidi Khatam University (@ 17 Daneshvar), 7th Floor, Seminar Room

“Using a hand-collected sample of election nominations for more than 30,000 directors over the period 2001–2010, we construct a novel measure of director proximity to elections called Years-to-election. We find that the closer directors of a board are to their next elections, the higher CEO turnover-performance sensitivity is. A series of tests, including one that exploits variation in Years-to-election that comes from other boards, supports a causal interpretation. Further analyses show that other governance mechanisms do not drive the relation between board Years-to-election and CEO turnover-performance sensitivity. We conclude that director elections have important implications for corporate governance.”

Required Reading(s) Do Director Elections Matter?

Student Seminar #1: Does Shareholder Composition Matter?

Date Time Presenter Location
Monday, January 28, 2019

(08 Bahman 1397)

12:30 – 14:00 M. M. Shahrabi Khatam University (@ 17 Daneshvar), 7th Floor, Seminar Room

“We examine whether institutional ownership composition is related to parameters of the market reaction to negative earnings announcements. When firms report earnings below analysts’ expectations, the stock price response is more negative for firms with higher levels of ownership by momentum or aggressive growth investors. There is no evidence, however, that these institutions cause an “overreaction” to earnings news. Ownership structure is also related to trading volume and to stock price volatility on days around earnings announcements. Our findings are consistent with the idea that the composition of institutional shareholders effects stock price behavior around the release of corporate information.”

Required Reading(s) Does Shareholder Composition Matter? Evidence from the Market Reaction to Corporate Earnings Announcements