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Title: 2009-2010 Program Review Finance.
Creator: Florida Atlantic University Office of Institutional Effectiveness & Analysis, Department of Finance, College of Business
Abstract/Description: Florida Atlantic University Departmental Dashboard Indicators. Department program reviews for College of Business, Florida Atlantic University.
Date Issued: 2009-2010
PURL: http://purl.flvc.org/fau/fd/FA00007761
Subject Headings: Florida Atlantic University -- History
Format: Document (PDF)

Title: 2010-2011 Program Review Finance.
Creator: Florida Atlantic University Office of Institutional Effectiveness & Analysis, Department of Finance, College of Business
Abstract/Description: Florida Atlantic University Departmental Dashboard Indicators. Department program reviews for College of Business, Florida Atlantic University.
Date Issued: 2010-2011
PURL: http://purl.flvc.org/fau/fd/FA00007762
Subject Headings: Florida Atlantic University -- History
Format: Document (PDF)

Title: 2012-2013 Program Review Finance.
Creator: Florida Atlantic University Office of Institutional Effectiveness & Analysis, Department of Finance, College of Business
Abstract/Description: Florida Atlantic University Departmental Dashboard Indicators. Department program reviews for College of Business, Florida Atlantic University.
Date Issued: 2012-2013
PURL: http://purl.flvc.org/fau/fd/FA00007763
Subject Headings: Florida Atlantic University -- History
Format: Document (PDF)

Title: 2013-2014 Program Review Finance.
Creator: Florida Atlantic University Office of Institutional Effectiveness & Analysis, Department of Finance, College of Business
Abstract/Description: Florida Atlantic University Departmental Dashboard Indicators. Department program reviews for College of Business, Florida Atlantic University.
Date Issued: 2013-2014
PURL: http://purl.flvc.org/fau/fd/FA00007764
Subject Headings: Florida Atlantic University -- History
Format: Document (PDF)

Title: 2014-2015 Program Review Finance.
Creator: Florida Atlantic University Office of Institutional Effectiveness & Analysis, Department of Finance, College of Business
Abstract/Description: Florida Atlantic University Departmental Dashboard Indicators. Department program reviews for College of Business, Florida Atlantic University.
Date Issued: 2014-2015
PURL: http://purl.flvc.org/fau/fd/FA00007765
Subject Headings: Florida Atlantic University -- History
Format: Document (PDF)

Title: 2015-2016 Program Review Finance.
Creator: Florida Atlantic University Office of Institutional Effectiveness & Analysis, Department of Finance, College of Business
Abstract/Description: Florida Atlantic University Departmental Dashboard Indicators. Department program reviews for College of Business, Florida Atlantic University.
Date Issued: 2015-2016
PURL: http://purl.flvc.org/fau/fd/FA00007766
Subject Headings: Florida Atlantic University -- History
Format: Document (PDF)

Title: 2016-2017 Program Review Finance.
Creator: Florida Atlantic University Office of Institutional Effectiveness & Analysis, Department of Finance, College of Business
Abstract/Description: Florida Atlantic University Departmental Dashboard Indicators. Department program reviews for College of Business, Florida Atlantic University.
Date Issued: 2016-2017
PURL: http://purl.flvc.org/fau/fd/FA00007767
Subject Headings: Florida Atlantic University -- History
Format: Document (PDF)

Title: Application of reference point theory to merger activity and characteristics.
Creator: Chira, Inga., College of Business, Department of Finance
Abstract/Description: In Essay I, I analyze the impact of the target and bidder reference points on the probability of acquisition under general economic conditions as well as in strong/weak economic periods. I find that the target and the bidder reference points have a significant impact on the probability of a firm becoming a bidder or a target. While the target reference point also has a significant impact on the successful completion of the merger, the bidder reference point does not. In addition, I find that...
Show moreIn Essay I, I analyze the impact of the target and bidder reference points on the probability of acquisition under general economic conditions as well as in strong/weak economic periods. I find that the target and the bidder reference points have a significant impact on the probability of a firm becoming a bidder or a target. While the target reference point also has a significant impact on the successful completion of the merger, the bidder reference point does not. In addition, I find that the target reference point is a significant determinant of management-led buyout mergers, while the bidder reference point has a significant impact on the probability of the bidder launching a hostile bid. In Essay II, I focus on the impact of the target and bidder reference points on the method of payment in the context of what the target seeks, what the bidder offers, and what the two parties use as their final method of payment. The analysis is performed under general economic conditions and in strong/weak economic periods. I find that while the target reference point has a strong impact on the method of payment agreed upon between the two parties, the bidder reference point does not. This is especially important given that the bidder reference point influences the consideration offered by the bidder but does not translate into a significant impact on the final method of payment. In essay III, I examine the impact of bidder reference point on public targets and the impact of bidder and target reference points on private firms. I analyze the aforementioned relationships under different economic conditions. Consistent with the literature on premium and public targets, I find that the target reference point has a strong and positive relationship with the premium paid for private firms. The relationship is stronger in weak economic times., At the same time, I do not find any evidence that the bidder reference point exerts a significant influence on the premium paid for public firms. Interestingly, the relationship between the bidder reference point and the premium paid for private firms is negative and significant.
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Date Issued: 2013
PURL: http://purl.flvc.org/FAU/3360773
Subject Headings: Consolidation and merger of corporations, Market segmentation, Negotiation in business, Industrial management
Format: Document (PDF)

Title: Are There Disparate Outcomes by Race in the Market for Reverse Mortgages?.
Creator: Tayar, George, Cole, Rebel, Florida Atlantic University, Department of Finance, College of Business
Abstract/Description: Reverse mortgages are designed to allow house-rich but cash-poor homeowners the ability to tap the equity in their homes. This unique mortgage product has several features that distinguish it from a traditional mortgage, including that no principal or interest payments are made to the lender. Using 2018 - 2020 HMDA data, I test for disparate treatment in outcomes by race, ethnicity and gender. I test for redlining disparate outcomes using the census track minority population percentage as a...
Show moreReverse mortgages are designed to allow house-rich but cash-poor homeowners the ability to tap the equity in their homes. This unique mortgage product has several features that distinguish it from a traditional mortgage, including that no principal or interest payments are made to the lender. Using 2018 - 2020 HMDA data, I test for disparate treatment in outcomes by race, ethnicity and gender. I test for redlining disparate outcomes using the census track minority population percentage as a proxy for neighborhood and test for loan pricing disparate outcomes using the interest rate charged. I test for origination disparate outcomes by comparing approval denial rates. My findings indicate (i) that lenders are more likely to reject applications from borrowers in census tracks with higher percentages of minorities, (ii) that lenders are more likely to reject applications from minority borrowers and (iii) that lenders charge higher interest rates to minority borrowers. I do not find that lenders charge higher interest rates in census tracks with higher percentages of minorities.
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Date Issued: 2022
PURL: http://purl.flvc.org/fau/fd/FA00014038
Subject Headings: Mortgage loans, Reverse, Discrimination, Minorities
Format: Document (PDF)

Title: CEO SOCIAL CAPITAL AND STOCK PRICE INFORMATIVENESS: US AND INTERNATIONAL PERSPECTIVES.
Creator: Malinin, Artem, Garcia-Feijoo, Luis, Florida Atlantic University, Department of Finance, College of Business
Abstract/Description: In Essay 1, I investigate the association between CEOs’ social capital and stock price informativeness in a sample of US firms. After accounting for the fact that larger networks attract more analysts following, I find that firms with larger CEO social capital exhibit higher private information incorporation and hence more informative stock prices. Results are consistent for five different proxies for stock price informativeness. Furthermore, the positive association between social capital...
Show moreIn Essay 1, I investigate the association between CEOs’ social capital and stock price informativeness in a sample of US firms. After accounting for the fact that larger networks attract more analysts following, I find that firms with larger CEO social capital exhibit higher private information incorporation and hence more informative stock prices. Results are consistent for five different proxies for stock price informativeness. Furthermore, the positive association between social capital and informativeness is driven by more diverse networks, as measured by gender, nationality, education, or professional diversity. Overall, results suggest that private information existing in networks may result in markets that are more informationally efficient. In Essay 2, I show that CEOs’ social capital has a positive impact on stock price informativeness in an international sample. Different robustness and endogeneity tests confirm those results. Moreover, I find that factors present at the country level can mitigate or reinforce social capital’s impact on informativeness. I consider characteristics not observable within one country that can influence such relation around the world including legal, cultural, and developmental. I uncover that for more developed countries and those with a higher quality of institutions a positive impact of social connectedness is more pronounced. In addition, I show the importance of CEOs’ connections characteristics for their impact on stock price informativeness. I find that if CEOs’ connections come from developed countries or countries that have better formal and informal institutions which affect information transparency, CEOs’ social capital becomes more important for informativeness.
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Date Issued: 2022
PURL: http://purl.flvc.org/fau/fd/FA00013973
Subject Headings: Chief executive officers, Social capital (Sociology), Stocks--Prices
Format: Document (PDF)

Title: Corporate diversification: organization capital, organic growth, and long-term performance.
Creator: Smith, Garrett C., Garcia-Feijoo, Luis, Florida Atlantic University, College of Business, Department of Finance
Abstract/Description: Corporate diversification is a core topic in Financial Economics. The desire to better understand why a firm elects to diversify as opposed to increase in scale is the motivation of this dissertation. To accomplish this goal I test a number of dynamic models of corporate diversification, with similar predictions, to better understand the dynamic choice to diversify. I find that several previously untested models do indeed provide insight as to why a firm would diversify (Essay One). In...
Show moreCorporate diversification is a core topic in Financial Economics. The desire to better understand why a firm elects to diversify as opposed to increase in scale is the motivation of this dissertation. To accomplish this goal I test a number of dynamic models of corporate diversification, with similar predictions, to better understand the dynamic choice to diversify. I find that several previously untested models do indeed provide insight as to why a firm would diversify (Essay One). In particular two firm traits, firm talent which I use the proxy of organization capital and asset specificity which I use the proxy of asset tangibility, are strongly related to propensity of the firm to engage in corporate diversification for the first time.
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Date Issued: 2015
PURL: http://purl.flvc.org/fau/fd/FA00004468, http://purl.flvc.org/fau/fd/FA00004468
Subject Headings: Competition, Corporate reorganizations, Corporations -- Growth, Diversification in industry, Economics -- Sociological effects, Industrial organization
Format: Document (PDF)

Title: CORPORATE SOCIAL RESPONSIBILITY INITIATIVES & DIRECTOR COMPENSATION STRUCTURE.
Creator: Dubois, Philippe, Javakhadze, David, Florida Atlantic University, Department of Finance, College of Business
Abstract/Description: This study examines the association between corporate social responsibility (CSR) and director compensation arrangements. I develop two competing hypotheses— based on the optimal contracting and rent extraction frameworks—arguing that CSR could shape director reputation or bargaining power, and consequently director pay structure. I further propose that monitoring or advising needs of the company as well as diversity of the board could moderate the proposed association. Finally, I argue that...
Show moreThis study examines the association between corporate social responsibility (CSR) and director compensation arrangements. I develop two competing hypotheses— based on the optimal contracting and rent extraction frameworks—arguing that CSR could shape director reputation or bargaining power, and consequently director pay structure. I further propose that monitoring or advising needs of the company as well as diversity of the board could moderate the proposed association. Finally, I argue that CSR-induced director compensation changes could have implications for firm performance. I document a positive and significant effect of CSR initiatives on director compensation. I also show that the effect is stronger for boards with greater advising but not monitoring needs. Boardroom gender diversity somewhat diminishes the effect of CSR. Finally, CSR-induced director compensation has mixed implications for firm performance. Overall, my results are more consistent with the rent extraction view of director pay arrangements.
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Date Issued: 2022
PURL: http://purl.flvc.org/fau/fd/FA00014080
Subject Headings: Corporate social responsibility, Social responsibility of business, Directors of corporations, Compensation
Format: Document (PDF)

Title: EQUAL EMPLOYMENT OPPORTUNITY: A STUDY OF EEO IN FIVE SELECTED MANUFACTURING COMPANIES.
Creator: BENNETT, GEORGE NORMAN., Florida Atlantic University, Abbott, Jarold G., College of Business, Department of Finance
Abstract/Description: This thesis surveys equal employment opportunities in selected manufacturing firms since the passage of Title VII of the 1964 Civil Rights Act and its amendments. Companies who have government contracts are now required by law to have written affirmative action programs that outline positive steps in providing equal opportunities in employment for minorities and women. Case studies of the five selected firms are conducted by the author. These studies involve analyzing and evaluating the...
Show moreThis thesis surveys equal employment opportunities in selected manufacturing firms since the passage of Title VII of the 1964 Civil Rights Act and its amendments. Companies who have government contracts are now required by law to have written affirmative action programs that outline positive steps in providing equal opportunities in employment for minorities and women. Case studies of the five selected firms are conducted by the author. These studies involve analyzing and evaluating the affirmative action programs and indicating the changes that have taken place in personnel policies and practices.
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Date Issued: 1974
PURL: http://purl.flvc.org/fcla/dt/13658
Subject Headings: Business Administration, General
Format: Document (PDF)

Title: Essays in corporate restructuring.
Creator: Murdock, Maryna., College of Business, Department of Finance
Abstract/Description: This essay focuses on firms that have publicly issued announcements that they were seeking a buyer. Managers of the firms in this unique sample display an idiosyncratic behavior by expressing a willingness to relinquish private benefits of control. The essay investigates the possible factors that may lead managers of these firms to issue such announcements, the effects of issuing "seeking buyer" announcements on shareholders' wealth, and the probability that such firms are later acquired....
Show moreThis essay focuses on firms that have publicly issued announcements that they were seeking a buyer. Managers of the firms in this unique sample display an idiosyncratic behavior by expressing a willingness to relinquish private benefits of control. The essay investigates the possible factors that may lead managers of these firms to issue such announcements, the effects of issuing "seeking buyer" announcements on shareholders' wealth, and the probability that such firms are later acquired. Results indicate that firms in poor financial condition, as well as larger and more homogeneous firms are more likely to issue a "seeking buyer" announcement. The interpretation of such results is that firms resort to issuing the announcement when a sale seems to be the means for survival, and when the sale is less likely without such an aggressive sale strategy. The announcements have a positive impact on shareholders' wealth, though they do not increase the probability of an acquisition. Essay 2: Shifts in risk as the result of corporate divestitures. The second essay investigates the effect of corporate divestitures on risk, while previous research focused exclusively on changes in shareholders' wealth. Specifically, this study explores changes in systematic, total and idiosyncratic risk as the result of spin-offs, carve-outs and asset sales. Additionally, I study factors that may explain the variation in risk changes as the result of the three types of divestitures. I document an increase in total and idiosyncratic risk for all types of divestitures, an increase in one of the measures of systematic risk for spin-offs and carve-outs and a reduction in systematic risk for asset sales. Change in risk is negatively correlated with the degree of focusing as the result of divestitures, and positively correlated with change in financial leverage.
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Date Issued: 2010
PURL: http://purl.flvc.org/FAU/2978988
Subject Headings: Consolidation and merger of corporations, Corporate reorganizations, Strategic alliances (Business)
Format: Document (PDF)

Title: Essays in Return Predictability After Large Price Shocks.
Creator: Brady, Kevin P., Garcia-Feijoo, Luis, Florida Atlantic University, College of Business, Department of Finance
Abstract/Description: In Essay 1, I use cross-country differences in investors’ traits — trust, patience, overconfidence, and risk tolerance — to test the underreaction, overreaction, and uncertain information theories of stock returns. I find that investors’ reactions to large daily stock price shocks vary between lower and higher levels of these traits. Specifically, investors with lower levels of trust and more patience underreact more (or overreact less) to price shocks, which aligns with the predictions of...
Show moreIn Essay 1, I use cross-country differences in investors’ traits — trust, patience, overconfidence, and risk tolerance — to test the underreaction, overreaction, and uncertain information theories of stock returns. I find that investors’ reactions to large daily stock price shocks vary between lower and higher levels of these traits. Specifically, investors with lower levels of trust and more patience underreact more (or overreact less) to price shocks, which aligns with the predictions of the underreaction hypothesis. Investors with higher levels of overconfidence overreact more to positive price shocks and overreact less to negative price shocks. While this finding does not conform exactly to the predictions of the overreaction hypothesis, it is consistent with more refined theories of how overconfidence affects asset prices. Investors less tolerant of risk overreact less to positive price shocks. I also find that differences in institutional characteristics affect over/underreaction. Specifically, there is less overreaction in countries with stronger investor protections and less insider trading. Additionally, the ability to sell short is associated with more overreaction to negative shocks and less overreaction to positive shocks. In Essay 2, I investigate whether publicly available information (PAI) affects over/underreaction according to predictions of several theoretical models, and then I test if differences in investors’ traits modifies the association between publicly available information and returns. After identifying and correcting for a methodological issue in some prior research, I show that in a pooled international sample of stocks, investors overreact to price shocks not accompanied by information, and also overreact (or react efficiently in some models) to information-based price shocks. I find that the effect of PAI on returns is not the same in each country, which motivates my tests on how this variability relates to differences in investor traits. My results show that investors with higher trust tend to overreact less to shocks accompanied by PAI, while investors less tolerant of risk underreact to positive price shocks. Additionally, investors with higher overconfidence and self-attribution bias overreact more to positive price shocks, but less to negative price shocks, in accordance with behavioral theories.
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Date Issued: 2018
PURL: http://purl.flvc.org/fau/fd/FA00013153
Subject Headings: Investors, Securities--Prices, Individual investors--Attitudes
Format: Document (PDF)

Title: ESSAYS ON BANK FAILURE PREDICTION.
Creator: Taylor, Jon R., Cole, Rebel, Florida Atlantic University, Department of Finance, College of Business
Abstract/Description: Researching the determinants of bank failure is an important task, yet the extant literature on bank failure early warning models fail to identify which model technique, sampling methodology, or set of coefficients provides the most accurate model when predicting failure on out-of-sample data. In this two-essay study, I examine previously published studies on bank failure prediction to determine with statistical significance which among the chosen set is most accurate. I also examine the...
Show moreResearching the determinants of bank failure is an important task, yet the extant literature on bank failure early warning models fail to identify which model technique, sampling methodology, or set of coefficients provides the most accurate model when predicting failure on out-of-sample data. In this two-essay study, I examine previously published studies on bank failure prediction to determine with statistical significance which among the chosen set is most accurate. I also examine the effects of bias-adjusting models from the Machine Learning literature to determine if bias-correcting sampling algorithms improve accuracy. In the first essay, I replicate three bank failure models (Martin (1977), Cole and White (2012), and DeYoung and Torna (2013) and use them to demonstrate the importance of out-of-sample predictive accuracy using bias-adjusting metrics and the use of McNemar’s Test to show, with statistical significance, that one set of predictive variables is better than the rest. Future researchers may use this framework to demonstrate significant contributions to the field, and regulators may apply these strategies to choose between candidate early warning models. I also test whether including savings banks (in addition to commercial banks) affects out-of-sample predictive accuracy.
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Date Issued: 2022
PURL: http://purl.flvc.org/fau/fd/FA00014046
Subject Headings: Bank failures, Banks and banking
Format: Document (PDF)

Title: Essays on bond exchange-traded funds.
Creator: Evans, Charles W., College of Business, Department of Finance
Abstract/Description: This dissertation investigates two fundamental questions related to how well exchange-traded funds that hold portfolios of fixed-income assets (bond ETFs) proxy for their underlying portfolios. The first question involves price/net-asset-value (NAV) mean-reversion asymmetries and the effectiveness of the arbitrage mechanism of bond ETFs. Methodologically, to answer the first question I focus on a time-series analysis. The second question involves the degree to which average returns of bond...
Show moreThis dissertation investigates two fundamental questions related to how well exchange-traded funds that hold portfolios of fixed-income assets (bond ETFs) proxy for their underlying portfolios. The first question involves price/net-asset-value (NAV) mean-reversion asymmetries and the effectiveness of the arbitrage mechanism of bond ETFs. Methodologically, to answer the first question I focus on a time-series analysis. The second question involves the degree to which average returns of bond ETF shares respond to changes in factors that have been found to drive average returns of bond portfolios. To answer this question I shift the focus of the analysis to a cross-section asset pricing test. In other words, do bond ETF share prices track the value of their underlying assets, and are they priced by investors like bonds in the cross-section? The first essay concludes that bond ETF shares exhibit mean-reversion asymmetries when price and NAV diverge, along persistent small premiums. These premiums appear to reflect the added value that bond ETFs bring to the fixed-income asset market through smaller trading increments, greater liquidity, and the ability to buy on margin and sell short. The second essay concludes that market, bond-specific, and firm-specific risk factors can help to explain the variation in U.S. bond ETF average returns, but only size seems to be priced in the cross-section of expected returns. This is not surprising as the sample used in the asset pricing tests is limited to the period 2007-2010, which corresponds to the "great recession", and size has been interpreted in the asset pricing literature as a state variable that proxies for financial distress and is highly dependent on the phase of the real business cycle., The two essays together suggest that bond ETFs can be used in trading strategies based on taking long and short positions in fixed-income assets, especially when trading in portfolios of fixed-income assets directly is not feasible.
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Date Issued: 2011
PURL: http://purl.flvc.org/FAU/3175017
Subject Headings: Exchange traded funds, Portfolio management, Hedge funds, Stock index futures
Format: Document (PDF)

Title: ESSAYS ON FINANCIAL MARKETS AND CORPORATE POLICIES.
Creator: Akter, Maimuna, Cumming, Douglas, Florida Atlantic University, Department of Finance, College of Business
Abstract/Description: The recent increase in common ownership makes it imperative to study the impact of common ownership on corporate policies. In this two-essay study, I examine how common owners interact with firms to make decisions and how they moderate the impact of market manipulation on corporate culture. In the first essay, I examine whether firms in the same industry make similar investment and financial policies when their large institutional owners overlap. This relationship is important given the...
Show moreThe recent increase in common ownership makes it imperative to study the impact of common ownership on corporate policies. In this two-essay study, I examine how common owners interact with firms to make decisions and how they moderate the impact of market manipulation on corporate culture. In the first essay, I examine whether firms in the same industry make similar investment and financial policies when their large institutional owners overlap. This relationship is important given the tremendous rise of common institutional owners and their significance on their portfolio firms’ policies. I hypothesize that common institutional owners cause their portfolio firms in the same industry to make similar policies by creating anti-competitive incentives, reducing information asymmetry, and influencing governance.
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Date Issued: 2023
PURL: http://purl.flvc.org/fau/fd/FA00014168
Subject Headings: Finance, Corporations—Finance, Corporate culture
Format: Document (PDF)

Title: ESSAYS ON GOVERNMENT CONTRACTING AND PRIVATE INVESTMENT FIRMS: IMPLICATIONS FOR CORPORATE FINANCE.
Creator: Suleymanov, Masim, Cumming, Douglas, Javakhadze, David, Florida Atlantic University, Department of Finance, College of Business
Abstract/Description: The modern organization is “a nexus of contracts” among various stakeholders. In this two-essay study, I examine how contracts surrounding entrepreneurial firms, namely contracts with the U.S. government agencies as customers and contracts with venture capital (VC) firms as investors, interact. In the first essay, I examine whether and how the ex-post government contracting activity of portfolio companies affects the performance of VC investments. Prior research establishes the impact of...
Show moreThe modern organization is “a nexus of contracts” among various stakeholders. In this two-essay study, I examine how contracts surrounding entrepreneurial firms, namely contracts with the U.S. government agencies as customers and contracts with venture capital (VC) firms as investors, interact. In the first essay, I examine whether and how the ex-post government contracting activity of portfolio companies affects the performance of VC investments. Prior research establishes the impact of government customers on the contractor's operating performance and information quality. I find that government contracting improves the likelihood of successful exits via initial public offering (IPO) or acquisition and reduces the likelihood of a liquidation. I also find that the suppliers’ bargaining power relative to the government moderates the relationship between government contracting and VC investment exits. The increased suppliers’ bargaining power mitigates the positive relationship between government contracting and the likelihood of IPOs. The impact of government contracting on the likelihood of acquisitions and liquidations is more substantial for suppliers with greater bargaining power. The results are robust for reputable and non-reputable VC firms, alternative model specifications, and adjustments for potential endogeneity.
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Date Issued: 2022
PURL: http://purl.flvc.org/fau/fd/FA00013917
Subject Headings: Public contracts, Venture capital, Corporations—Finance
Format: Document (PDF)

Title: ESSAYS ON IMP ACT OF BUYBACKS ON BONDHOLDERS AND LONG-TERM SHAREHOLDERS.
Creator: De Almeida, Pedro Monteiro, Garcia-Feijoo, Luis, Florida Atlantic University, Department of Finance, College of Business
Abstract/Description: This dissertation investigates the consequences of stock repurchase programs on long-term shareholders and bondholders. In the first essay, I present evidence that stock buybacks reduce investment inefficiencies associated with short-term ownership. For a sample of U.S. firms from 1988 to 2018, I first document that stock buybacks are associated with lower and short-term investors with higher corporate investment and net hiring. However, contrary to the conventional view, I find that buybacks...
Show moreThis dissertation investigates the consequences of stock repurchase programs on long-term shareholders and bondholders. In the first essay, I present evidence that stock buybacks reduce investment inefficiencies associated with short-term ownership. For a sample of U.S. firms from 1988 to 2018, I first document that stock buybacks are associated with lower and short-term investors with higher corporate investment and net hiring. However, contrary to the conventional view, I find that buybacks reduce overinvestment related to short-term owners rather than increasing underinvestment. I conclude that firms have been using buybacks as an efficient mechanism to align the interest of short-term and long-term investors. Results are robust to alternative measures of stock repurchase and ownership investment horizon and to endogeneity concern In the second essay, I test the signaling and wealth transfer hypotheses for share repurchase announcements using daily bond and stock returns. I distinguish between governance mechanisms protecting shareholders or bondholders and between internal and external shareholder governance strength. I find that stock and bond returns react positively to buyback announcements only at companies with strong internal shareholder governance mechanisms. Moreover, I reveal the positive impact of internal governance on the relation between stock and bond return is more pronounced in the firms where managerial compensation is more tied to stock performance and where the wealth transfer is expected. I found no evidence that high short-term oriented ownership increases the wealth transfer in repurchase announcements. Finally, I show that bonds with distribution covenants are negatively impacted by repurchase announcements, which supports the view that the market punishes these bonds when firms are likely to use repurchase stocks to bypass their covenants.
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Date Issued: 2022
PURL: http://purl.flvc.org/fau/fd/FA00013976
Subject Headings: Stock repurchasing, Bondholders, Stockholders
Format: Document (PDF)

FAU Theses and Dissertations (35)	+ -
FAU College Collections (7)	+ -

Consolidation and merger of corporations (7)	+ -
Florida Atlantic University -- History (7)	+ -
Investment analysis (4)	+ -
Portfolio management (4)	+ -
Social responsibility of business (4)	+ -

Chief executive officers (3)	+ -
Corporations (3)	+ -
Dividends (3)	+ -
Finance (3)	+ -
Negotiation in business (3)	+ -
Banks and banking (2)	+ -
Boards of directors (2)	+ -
Corporate reorganizations (2)	+ -
Corporate social responsibility (2)	+ -
Corporations—Finance (2)	+ -
Econometric models (2)	+ -
Industrial management (2)	+ -
Prices (2)	+ -
Social capital (Sociology) (2)	+ -
Stocks--Prices (2)	+ -
Asset allocation (1)	+ -
Assets (Accounting) (1)	+ -
Bank failures (1)	+ -
Bondholders (1)	+ -
Bonds (1)	+ -
Business Administration, General (1)	+ -
Climatic changes (1)	+ -
Compensation (1)	+ -
Competition (1)	+ -
Conglomerate corporations (1)	+ -

Electronic Thesis or Dissertation (35)	+ -
Program Review (7)	+ -

Florida Atlantic University (25)	+ -
Garcia-Feijoo, Luis (8)	+ -
Javakhadze, David (8)	+ -
Florida Atlantic University Office of Institutional Effectiveness & Analysis (7)	+ -
Agapova, Anna (3)	+ -

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