SESSION 1: FINANCIAL INSTITUTIONS – MUTUAL FUNDS AND HEDGE FUNDS
1. ‘Litigations and Mutual Fund Runs’ – Başak Tanyeri, Bilkent University, and Meijun Qian, Australian National University
This paper investigates whether anticipation of adverse events (litigations over market-timing and late-trading) can trigger runs in mutual funds.
2. ‘Family Descent as a Signal of Managerial Quality: Evidence from Mutual Funds’ – Oleg Chuprinin, University of New South Wales, and Denis Sosyura, University of Michigan
Using hand-collected data from individual Census records on the wealth and income of managers’ parents, we find that managers from poor families deliver higher alphas than managers from rich families. This result is robust to alternative measures of fund performance, such as benchmark-adjusted return and value extracted from capital markets.
3. ‘Capacity Constraints and New Hedge Fund Openings’ – Dr Saikat Sovan Deb, Deakin University, and Sugato Chakravarty, Purdue University
This paper provides empirical evidence as to how hedge funds’ capacity constraints may significantly influence fund families’ decision to open new hedge funds. It also discusses how hedge fund families face diseconomies of scale because of non-scalability of investment strategies, as their existing funds approach the critical size, fund families may open new hedge funds rather than allow existing funds to grow.
SESSION 2: BANKING AND REGULATION
4. ‘Leverage and Risk Taking’ – Guillaume Roger, University of Sydney, and Santiago Moreno Bromberg, Department of Banking and Finance, University of Zurich
This paper studies a continuous time contracting problem with risk taking in which size plays a role.
5. ‘The Informational Value of Patents in Banking Relationships’ – Farzad Saidi, University of Cambridge, and Alminas ˇZaldokas, Hong Kong University of Science and Technology
Is there a trade-off between patenting and secrecy for innovating firms, and if so, how does it interact with financial relationships? To shed light on these dynamics, this paper exploits the American Inventor’s Protection Act of 1999 as a shock to innovation disclosure.
6. ‘What are They Meeting for? A Tale of Two FOMC Announcements’ – Vincent Gregoire, University of Melbourne, Oliver Boguth, Arizona State University and Charles Martineau, University of British Columbia
Using evidence from equity, options, and swap markets, as well as media coverage this paper analyses what has led the Federal Open Market Committee to time critical decisions to coincide with press conferences.
SESSION 3: ROUND TABLE
7. ‘Virtual currencies and block chains potential impacts on financial market infrastructures and on corporate ownership’ – Paola Fico, Borsa Italiana, London Stock Exchange Group. This paper discusses bitcoin and how the technology underlying it will become ever more influential as developers create newer, better versions and clones.
8. ‘Bitcoin, Currency or Asset?’ – KiHoon Hong, Hongik University College of Business, Adrian Lee, Kühne Logistics University, and Dirk G. Baur, UTS Business School
This paper analyses the question of whether bitcoin is a currency or an asset and, more specifically, what is its current usage and what usage will prevail in the future, given its characteristics.
9. ‘The Legal Status of Online Currencies: Are Bitcoins the Future?’ – Rhys A. Bollen, Monash University
This paper examines the legal and regulatory status of virtual currencies.
10. ‘Central Counterparties and Strategic Reduction of Systemic Risk, Preliminary and Incomplete’ – James Chapman and Tsz-Nga Wong, Bank of Canada
This paper studies a dynamic network economy, where risk averse traders trade multi-laterally over the counter but cannot commit to fulfil their short positions. We show that, although the level of trade is below the first-best, bilateral clearing with collateral can provide an allocation superior to those without collateral.
SESSION 4: CORPORATE GOVERNANCE
11. ‘Pay me now (and later): Benefit Manipulation before Pension freezes and Executive Retirement’ – Jun Yang, Indiana University, Kangzhen Xie, University of Arkansas, Yupeng Wang, Northwestern University, and Irina Stefanescu, Federal Reserve Board
This paper discusses bonus boosts and how discount rate manipulation before pension-related events suggest opportunistic managerial behavior.
12. ‘Death by Committee? An Analysis of Delegation in Corporate Boards’ – Renée Adams, University of New South Wales, Vanitha Ragunathan, University of Queensland, and Robert Tumarkind, University of New South Wales
Boards are working harder over time, but are they working better? Using text-based algorithms to construct a dataset with over 30,000 firm-year observations from 1996 to 2010, this report documents the governance reforms of the early 2000s that may have had unintended consequences.
13. ‘The Effect of Activists' Short-Termism on Corporate Governance’ – Jing Zeng and Gunter Strobl, Frankfurt School of Finance & Management
This paper investigates whether activist investors' focus on short-term stock prices impedes their role in improving corporate governance.
SESSION 5: PhD PAPERS
14. ‘Firing on all cylinders? CEO retention and performance, a learning approach’ –Thomas C. Stannard, Victoria University of Wellington
The decision a board makes to dismiss or retain their manager is the most important one it faces. This paper utilises real options analysis to develop a new learning-based model of this decision.
15. ‘The role of deposit insurance in liquidity risk management: Evidence from systematic banking crises’ – Diego Puente, Phong Ngo and Zain Virani, Australian National University
This paper discusses the complementarity between the simultaneous provision of liquidity to depositors and borrowers is only possible in the presence of deposit insurance.
SESSION 6: CORPORATE FINANCE
16. Corporate Governance and Default Risk in Financial Firms over the Post Financial Crisis Period: International Evidence’ – Lorne Switzer, Concordia University – John Molson School of Business, Jun Wang, DAN Management & Organizational Studies, and Qiao Tu, Concordia University – John Molson School of Business
This paper looks at the post-financial-crisis period, and the relationship between default risk and corporate governance for financial firms outside North America.r
17. ‘Budget cycles, R&D investment and crowding out: Government dependent firms and their peers’ – Phong Ngo, Australian National University, and Jared Stanfield, University of New South Wales
This paper offers a novel interpretation for the crowding out of peer-firm investment, namely, that peer-firm managers response to falling relative performance by cutting R&D to manage current earnings upward.
18. ‘Mutual Fund Holdings of Credit Default Swaps: Liquidity Management and Risk Taking’ – Zhongyan Zhu, Chinese University of Hong Kong, and Wei Jiang, Columbia Business School
Using a comprehensive dataset of mutual funds’ quarterly holdings of credit default swap (CDS) contracts during 2007–2011, this paper analyses the motives for and consequences of mutual funds’ participation in the CDS market pre- and post-financial crisis.
SESSION 7: CORPORATE FINANCE
19. ‘Private or Public debt? Effect of crisis on financial intermediation’ – Madhu Kalimipalli, Wilfrid Laurier University, Alan G. Huang, University of Waterloo, Subhankar Nayak, Wilfrid Laurier University, and Latha Ramchand, University of Houston
How did the crisis impact financial intermediation? This paper addresses this question by studying a unique market segment, viz. foreign private debt issued in the US, which grew in size, despite the financial crisis.
20. ‘CEO Overconfidence and the Cost of Private Debt: Evidences from Bank Loan Contracting’ - Yehning Chen from National Taiwan University, Dr. Po-Hsin Ho from National Taipei University, Dr. Chih-Yung Lin from Yuan Ze University and Ju-Fang Yen from National Taipei University.
This paper studies whether banks charge higher or lower interest rates on loans to firms with overconfident CEOs. It establishes a theoretical model to show the relationship between the loan rate and overconfidence of the borrowing firm’s CEO.