Senior Fellows/Fellows

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Senior Fellows/Fellows

Reverse Mergers, Shell Value, and Regulation

Charles M. C. LEE, Yuanyu QU, Tao SHEN
Using a comprehensive sample of reverse merger (RM) transactions, we examine the effects of China’s IPO regulations on the prices and returns of its publicly listed stocks. During 2007-2015, unlisted Chinese firms paid an average of 3 to 4 Billion RMB for each listed shell, an amount exceeding 2/3...
Keywords: reverse mergers, shell value, anomalies, regulation risk, IPOs, Chinese equity markets
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Senior Fellows/Fellows

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Senior Fellows/Fellows

Technological Links and Predictable Returns

Charles M. C. LEE, Stephen TENG Sun, Rongfei WANG, Ran ZHANG
This paper finds evidence of return predictability across technology-linked firms. Employing a classic measure of technological closeness between firms, we show that the returns of technology-linked firms have strong predictive power for focal firms’ returns.  A long-short strategy based on this ...
Keywords: Technology momentum, Stock Returns, return predictability, patents, technological closeness, limited attention, market efficiency
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Annual Conference

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International Macroeconomics, Money & Banking

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May 2016

Fiscal Conditions and Long-term Interest Rates

Koji NAKAMURA , Tomoyuki YAGI
We conduct a quantitative analysis of the effects of fiscal conditions and other factors on nominal long-term interest rates based on panel data of 23 member states of the Organisation for Economic Co-operation and Development (OECD) for the period from 1980 to 2013. In addition to labor productivit...
Keywords: Long-term interest rate, Fiscal balance, Debt outstanding, Current account, National burden ratio, Fiscal reconstruction, monetary policy
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Annual Conference

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Accounting, Senior Fellows/Fellows

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May 2016

The effect of anti-corruption campaign on shareholder value in a weak institutional environment: Evidence from China

Bin KE, Na LIU, Song TANG
We examine the impact of Chinese President Xi Jinping’s anti-corruption campaign on shareholder value of publicly listed Chinese firms. We find that the anticorruption campaign reduces the profitability of the firms that sell luxury goods and services. The anti-corruption campaign helps reduce exc...
Keywords: China, anti-corruption regulation, SOE, firm performance, event study
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Annual Conference

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Accounting, Senior Fellows/Fellows

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May 2016

Do Analysts and their Employers Value Access to Management? Evidence from Earnings Conference Call Participation

Vanitha RAGUNATHAN , Ling CEN, Jing CHEN, Sudipto DASGUPTA
The literature examining analyst activity assumes that access to management is valued by analysts and their employers. We propose a readily observable measure of access: how often an analyst is invited to be among the first to ask questions in the Q&A session of an earnings conference call. Thes...
Keywords: Career Outcomes, Analyst Forecasts and Recommendations, Earnings Conference Calls
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