21 de Septiembre, 2016
Social network analysis on Board of Directors and Sell-side Analysts.
Fecha de inicio: 23 de Septiembre, 2016, 13:00 hrs.
Fecha de término: 07 de Octubre, 2016, 13:00 hrs.
Social network analysis on Board of Directors and Sell-side Analysts.
Los proximos seminarios se agruparan en un cliclo compuesto por 3 papers relacionados al mismo tema. Espoeramos contar con su asistencia.
Abstract del ciclo: In this cycle we will discuss the foundational implications of social networks of directors and interboard locks and sell-side analyst networks, and their impact on various organizational outcomes and corporate financial policies. The cycle will consist of three related papers covering the topics of social networks foundations, the effect of social networks on firm decisions, and their effects on stock commonalites.
Los tres papers asociados al ciclo son:
Paper 1:
Fecha: Viernes 23 de Septiembre, 13.00 hrs
Title: On The Micro-Foundations of Evolving Director Networks
Sala: T1002
Abstract:
Examining the relationship between social networks of directors and firms and various organisational outcomes is an important research area in management. However, empirical evidence suggests that there are still important limitations in relation to the theoretical micro-foundations to understandhow networks emerge, evolve and change, the theory viewpoint behind examining the relationship between networks and organisational outcomes and last but not least, the methodological artefacts that are used to measure and test empirically the relationship. In this paper, we revisit the theoretical micro-foundations of social networks of directors by studying how they emerge under the individual agency perspective, how they are affected by the relative availability of firm resources and how these effects are interacted by managerial control levers such as ownership concentration.
Authors: David Díaz, Babis Theodoulidis, Azar Shahgholian
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Examining the relationship between social networks of directors and firms and various organisational outcomes is an important research area in management. However, empirical evidence suggests that there are still important limitations in relation to the theoretical micro-foundations to understandhow networks emerge, evolve and change, the theory viewpoint behind examining the relationship between networks and organisational outcomes and last but not least, the methodological artefacts that are used to measure and test empirically the relationship. In this paper, we revisit the theoretical micro-foundations of social networks of directors by studying how they emerge under the individual agency perspective, how they are affected by the relative availability of firm resources and how these effects are interacted by managerial control levers such as ownership concentration.
Authors: David Díaz, Babis Theodoulidis, Azar Shahgholian
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Paper 2:
Fecha: Viernes 30 de Septiembre, 13.00 hrs
Title: Analyst Coverage Network and Corporate Financial Policies
Sala: T1002
Abstract: This paper shows that sell-side analysts play an important role in propagating corporate financial policy choices, such as leverage and equity issuance decisions across firms. Using exogenous characteristics of analyst network peers as well as the “friends-of-friends” approach from the network effects literature to identify peer effects, we find that exogenous changes to financial policies of firms covered by an analyst leads other firms covered by the same analyst to implement similar policy choices. We find that a one standard deviation increase in peer firm average leverage is associated with a 0.31 standard deviation increase in a firm's leverage, and a one standard deviation increase in the frequency of peers’ equity issuance leads to a 14% increase in the likelihood of issuing equity. We show evidence that these analyst network peer effects are distinct from industry peer effects and are more pronounced among peers connected by analysts that are more experienced and from more influential brokerage houses.
Abstract: This paper shows that sell-side analysts play an important role in propagating corporate financial policy choices, such as leverage and equity issuance decisions across firms. Using exogenous characteristics of analyst network peers as well as the “friends-of-friends” approach from the network effects literature to identify peer effects, we find that exogenous changes to financial policies of firms covered by an analyst leads other firms covered by the same analyst to implement similar policy choices. We find that a one standard deviation increase in peer firm average leverage is associated with a 0.31 standard deviation increase in a firm's leverage, and a one standard deviation increase in the frequency of peers’ equity issuance leads to a 14% increase in the likelihood of issuing equity. We show evidence that these analyst network peer effects are distinct from industry peer effects and are more pronounced among peers connected by analysts that are more experienced and from more influential brokerage houses.
Authors: Armando Gomes, Radhakrishnan Gopalan, Mark Leary and Francisco Marcet
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Paper 3:
Fecha: Viernes 7 de Octubre, 13.00 hrs
Title: Analyst Coverage Network and Stock Return Comovement in Emerging Markets
Sala: T1002
Abstract: This paper shows that analyst coverage networks (ACN) play an important role explaining stock return commonalities across Latin American stocks. Specifically, pairs of stocks connected by analysts in common exhibit higher comovement and excess comovement. In addition, firms easily traded by foreign investors are more affected by common coverage and international analysts are an important source of across-country excess comovement. Finally, creating the network at brokerage house level and exploiting exogenous changes in the ACN around the MSCI LATAM Index reviews this study addresses endogeneity concerns regarding the effect of ACN on commonalities.
Authors: Francisco Marcet