FIRN Women Online Seminars
FIRN Women is hosting online seminars presented by female ECRs in a monthly seminar series. The seminars will be via zoom and will be about an hour long, comprising presentation followed by moderated Q&A. The programme for the next few months is as follows:
Friday 19 June, 1pm (AEST) – Ekaterina Volkova, Melb: Is Blockholder Diversity Detrimental? click here to register
Miriam Schwartz-Ziv and Ekaterina Volkova
Abstract: We find that block diversity, i.e., having multiple block types, is detrimental to firm performance in three settings which experience exogenous variation to (the revelation of) changes in block diversity. In the first setting, we find that the market response to an increase in block diversity revealed around an exogenously pre-determined date is negative. In the second setting we find that following an individuals’ death/ retirement leading to a decrease in block diversity, firm performance improves. The third setting focuses on the 2003-4 mutual fund scandal which led to the dissolution of blocks thereby decreasing block diversity, and was followed by an improvement of firm performance. Additionally, we show that firms held by heterogeneous blockholders consistently perform worse than firms held by homogeneous blockholders. These patterns can be explained by our findings that firms with a heterogeneous blockholder base are prone to experience disagreement: in such firms, we uniquely demonstrate that shareholders are more likely to sue the firm, and disagreement is more prevalent at shareholder meetings.
Friday 17 July, 1pm (AEST) – Zhaoxia Xu, UNSW click here to register
Friday 21 August, 1pm (AEST) – Min Zhu, UQ, Crowding: Evidence from Fund Managerial Structure click here to register
Campbell R. Harvey, Yan Liu, Eric K. M. Tan, Min Zhu
Abstract: Over the past 30 years, there has been a striking evolution in fund management structure with team-managed funds growing from 30% of funds to over 70% today. While much attention is focused on fund performance, our paper presents evidence that this transformation is likely a response to crowding:adding new managers brings fresh investment ideas meaning any particular idea is less likely to be crowded. Our results show that funds that transition from solo to team management have less concentrated portfolios and lower decreasing returns to scale. Consistent with the crowding of ideas, we show that diversiﬁcation of team skills is important for reducing the impact of fund size on performance. We also ﬁnd that the performance of managers that employ systematic investment processes are not as sensitive to inﬂows suggesting that discretionary managers with a limited number of ideas are more likely to run into capacity constraints.
Friday 18 September, 1pm – Shushu Liao, AUT, The Joint Effect of Measurement Error in Q and Covariance Between Regressors on Coefficient Biases click here to register
Abstract: The effect of measurement error, which operates via the covariance between q and cash flow, plays an important part in explaining the time-series and cross-section of cash flow sensitivity. We find that the measurement error decreases investment-cash flow sensitivity in the recent decades because it biases cash flow sensitivity downward when q and cash flow are negatively covaried. The covariance structure also offers explanations for the perceived “wrong-way” differential investment-cash flow sensitivity between constrained and unconstrained firms (the perceived negative relationship between investment-cash flow sensitivity and constraints status) classified under the widely used a priori measures. Moreover, we show that even the higher-order moment-based GMM estimator cannot address the bias if the measurement error is not independent of q (a nonclassical error).
FIRN Women Engagement Meetings
FIRN is hosting monthly online catch-up meetings with VP FIRN Women, Jacquie Humphrey. These informal chats will allow FIRN women to connect with their networks over zoom and a BYO cup of tea. Upcoming dates:
Wednesday 24 June – 11am
Look out for the FIRN Women email with the zoom link and password