We exploit the restrictions of intertemporal portfolio choice in presence nonfinancial income risk to test hedging using information contained actual investor. use a unique data set Swedish investors with broken down at investor level and into various components wealth, income, demographic characteristics. Portfolio holdings are identified stock level. show that do not hedge but invest stocks closely related their income. explain this familiarity, is, tendency concentrate which is...

Exploiting the Japanese banking crisis of 1990s as a laboratory, we investigate effects bank bailouts on supply credit and performance banks' clients. Our findings indicate that size capital injections relative to initial financial condition banks is crucial for success bailouts. Capital are large enough reestablish requirements increase spur investment. In contrast, not only do too small fail credit, but they also encourage evergreening nonperforming loans. (JEL E44, G21, G28, G32, G34)

ABSTRACT Using a data set that provides unprecedented detail on investors' stockholdings, we analyze whether investors take the quality of corporate governance into account when selecting stocks. We find all categories (domestic and foreign, institutional small individual) who generally enjoy only security benefits are reluctant to invest in companies with weak governance. In contrast, individuals connected company insiders more likely companies. These findings suggest it is important...

Journal Article Investment Banks as Insiders and the Market for Corporate Control Get access Andriy Bodnaruk, Bodnaruk Mendoza College of Business, University Notre Dame Send correspondence to Massimo Massa, INSEAD, Boulevard de Constance, 77300 Fontainebleau, France; telephone: 33-160724481; fax: 33-160724045. E-mail: massimo.massa@insead.edu. Search other works by this author on: Oxford Academic Google Scholar Massa INSEAD CEPR Andrei Simonov Eli Broad Graduate School Management, Michigan...

The fluctuations of vortices in Josephson-coupled layered superconductors are shown to have a profound effect on values the temperature-dependent penetration depth, Ginzburg-Landau parameter, and upper critical field extracted from reversible magnetization data below temperature.

We study the effects of controlling shareholders' portfolio diversification on initial public offering (IPO) process. Less diversified shareholders have more to gain from taking their firm public, and are willing accept a lower price for shares. test these hypotheses using data all IPOs in Sweden between 1995 2001. Using detailed information composition private firms, we construct several proxies relate them probability IPO underpricing. show that less individual shareholders, especially...

We investigate the way investors react to prior gains/losses. directly examine investor reactions different definitions of gains and losses (i.e., overall wealth, paper losses, realized capital losses) how in one category wealth (e.g., real estate) affect holdings other categories financial assets). show that change their risky assets as a function both estate gains. Prior increase risk-taking, while reduce it. To interpret our results, we consider compare three alternative hypotheses...

We show that individuals residing in highly entrepreneurial neighborhoods are more likely to become entrepreneurs and invest into their own businesses, even though profits lower alternative job opportunities attractive. Our results suggest peer effects create nonpecuniary benefits from activity play an important role the decision entrepreneur. Alternative explanations, such as entry costs, social learning, informal credit markets, not supported by data.

Journal Article Loss-Averse Preferences, Performance, and Career Success of Institutional Investors Get access Andriy Bodnaruk, Bodnaruk Search for other works by this author on: Oxford Academic Google Scholar Andrei Simonov The Review Financial Studies, Volume 29, Issue 11, November 2016, Pages 3140–3176, https://doi.org/10.1093/rfs/hhw053 Published: 21 June 2016

Using microdata from the American Red Cross (ARC) and Federal Election Commission (FEC) in two natural experiments, we provide evidence that political giving charitable are substitutes. In first experiment, estimate effects of a positive shock to donations ARC: foreign disaster events. We find although ARC increase by 34.9% six weeks following disaster, decline 18.8% same period. Put differently, each 1% is accompanied 0.53% drop donations. At average county-week–level donations, implied...

This paper reviews the literature on determinants of entrepreneurial activity and investigates to what extent differences in population, business environment cultural values contribute explaining across Swedish municipalities. Individual characteristics are most important factors choice. However, we find that and, likely, social norms also matter. The data suggest individuals more likely become entrepreneurs where there entrepreneurs, even if income is lower. We explain why this may be...

Exploiting the Japanese banking crisis of 1990s as a laboratory, we investigate effects bank bailouts on supply credit and valuations real performance banks’ clients. Consistent with recent theories, our findings indicate that size capital injections relative to initial financial conditions is crucial for success bailouts. Capital are sufficiently large reestablish requirements increase spur investment. In contrast, not only do too small fail credit, but they also encourage evergreening...

We study the link between college interaction and portfolio choice. consider both general imprinting of values shared by all students attending same school—values-based interaction—and ensuing with classmates—bonding-based interaction. show that even after controlling for standard motivations theory, college-based affects choice styles—growth/value investing as well stock picking. Both dimensions interaction—values-based bonding-based interactions—contribute to shape investor Overall,...

Within the London approximation, we show that in anisotropic, strongly type II superconducting slabs two ``species'' of vortices can coexist simultaneously when external magnetic field is applied at an angle with respect to crystal principal axes. Simple thermodynamic arguments are used prove appropriate potential minimum some lie parallel c axis while others axis.

Using a data set that provides unprecedented detail on investors' stockholdings, we analyze whether investors take the quality of corporate governance into account when selecting stocks. We find all categories who generally enjoy only security benefits (domestic and foreign, institutional small individual investors) are reluctant to invest in companies with weak governance. In contrast, individuals well connected local financial community because they board members or hold large blocks at...

We study holdings in M&A targets by financial conglomerates which affiliated investment banks advise the bidders. show that advisors take positions before announcements. These stakes are positively related to probability of observing bid and target premium. argue this can be explained terms advisors, privy important information about deal, investing expectation its price increase. document high profits strategy. also a positive relationship between advisory stake deal characteristics. The is...

The field distribution of a straight London vortex crossing the flat boundary uniaxial superconductor is evaluated. A superconducting half-space and thin film are considered for general crystal orientation relative to surface. Vortex lattices in with tilted axis distorted more strongly than bulk.