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Indexing and the Incorporation of Exogenous Information Shocks to Stock Prices

Morck, Randall; Yavuz, Mehmet Deniz - National Bureau of Economic Research - 2023

Savings increasingly flow to low-cost index funds, which simply buy and hold the stocks in a major index, such as the S&P 500. Increased indexing impedes incorporation of idiosyncratic information into stock prices. We limit endogeneity bias by showing that exogenous idiosyncratic currency...

Persistent link: https://www.econbiz.de/10014447296

Information, analysts, and stock return comovement

Hameed, Allaudeen - 2010

We examine information spillover as a source of stock return synchronicity, where information about highly-followed "prominent" stocks is used to price other "neglected" stocks sharing a common fundamental component. We find that stocks followed by few analysts co-move significantly with...

Persistent link: https://www.econbiz.de/10012462818

Characteristics of Observed Limit Order Demand and Supply Schedules for Individual Stocks

Kim, Jung-Wook - 2009

Using complete order books from the Korea Stock Exchange for a four-year period including the 1997 Asian financial crisis, we observe (not estimate) limit order demand and supply curves for individual stocks. Both curves have demonstrably finite elasticities. These fall markedly, by about 40%,...

Persistent link: https://www.econbiz.de/10012463914

Shareholder Democracy in Canada

Morck, Randall - 2010

-style takeover defences, such as poison pills and staggered boards, but allows voting caps and pyramiding in their stead. Various … investors and mandatory takeover bids …

Persistent link: https://www.econbiz.de/10012462099

Do Managerial Objectives Drive Bad Acquisitions?

Morck, Randall - 1989

This paper documents for a sample of 327 US acquisitions between 1975 and 1987 three forces that systematically reduce the announcement day return of bidding firms. The returns to bidding shareholders are lower when their firm diversifies, when it buys a rapidly growing target , and when the...

Persistent link: https://www.econbiz.de/10012476048

Alternative Mechanisms for Corporate Control

Morck, Randall - 1988

change: internally precipitated management turnover, hostile takeover, and friendly takeover. We find that firms experiencing … is also weaker evidence that hostile takeover targets underperform their industry peers. We interpret this evidence as … relative to industry, but that an external challenge in the form of a hostile takeover is often required when the whole …

Persistent link: https://www.econbiz.de/10012476534

Characteristics of Hostile and Friendly Takeover Targets

Morck, Randall - 1987

Compared to an average Fortune 500 firm, a target of a hostile takeover is smaller, older, has a lower Tobin's Q … results suggest that the motive for a takeover often determines its mood. Thus disciplinary takeovers are more often hostile …

Persistent link: https://www.econbiz.de/10012476773

Kindleberger Cycles & Economic Growth : Method in the Madness of Crowds?

Morck, Randall - National Bureau of Economic Research - 2021

Because positive spillovers give investment in innovation a social rate of return several times higher than its internal rate of return to innovators, innovation is chronically underfunded. Recurrent manias, panics and crashes in stock markets inundate "hot" new technologies with capital. To the...

Persistent link: https://www.econbiz.de/10012482627

Behavioral Finance in Corporate Governance - Independent Directors, Non-Executive Chairs, and the Importance of the Devil's Advocate

Morck, Randall - 2004

The Common Law, parliamentary democracy, and academia all institutionalize dissent to check undue obedience to authority; and corporate governance reformers advocate the same in boardrooms. Many corporate governance disasters could often be averted if directors asked hard questions, demanded...

Persistent link: https://www.econbiz.de/10012468049

How Does the Market Value Unfunded Pension Liabilities?

Bulow, Jeremy I. - 1985

We lead off by discussing a number of theoretical reasons for expecting various relationships between a firm's unfunded pension liability and its market value. We then discuss our doubts about the methodology of earlier papers which studied the empirical relation between funding and market value...

Persistent link: https://www.econbiz.de/10012477480