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dc.contributor.advisorBakshi, Gurdip
dc.contributor.advisorBakshi, Xiaohui Gao
dc.creatorGao, Wei
dc.date.accessioned2021-05-24T19:02:20Z
dc.date.available2021-05-24T19:02:20Z
dc.date.issued2021
dc.identifier.urihttp://hdl.handle.net/20.500.12613/6559
dc.description.abstractThis dissertation has two chapters. Each empirically examines one finance topic. The first chapter focuses on behavioral finance. The second chapter focuses on corporate finance. The first chapter is motivated by inconclusive theoretical prediction and lack of empirical evidence on the effect of mood on trading volume. This chapter exploits repeated natural experiments from the occurrence of severe smog in Beijing to test the inertia hypothesis (Bad moods cause inactivity and inertia and thus decrease in trading volume) against the mood regulation hypothesis (Bad moods increase trading volume because investors use trading as a way to combat bad moods). Intra-day analysis in this chapter shows that smog in Beijing causes trading volume of stocks headquartered in Beijing to increase, which contradicts the inertia hypothesis. The effect is more pronounced among large stocks, which rules out the possibility that investors seek gambling thrill during smog. Additionally, the effect is more pronounced among low risk stocks, which reflects the risk aversion associated with depression among investors and supports the mood regulation theory. The second chapter is motivated by the fact that initial public offerings (IPOs) transform private firms into publicly traded ones, thereby improving liquidity of their shares. Better liquidity increases firm value, which I call “liquidity value”. I develop a model and hypothesize that issuers and IPO investors bargain over the liquidity value, resulting in a discounted offer price, i.e., IPO underpricing. Consistent with the model, I find that underpricing is positively related to the expected post-IPO liquidity of the issuer. The relation is stronger when firms are financed by venture capital investors, when the underwriter has more bargaining power, or when a smaller fraction of the firm is sold. I also explore two regulation changes as exogenous shocks to issuers’ liquidity before and after IPO, respectively. With a difference-in-difference approach, I find that underpricing is more pronounced with better expected post-IPO liquidity or lower pre-IPO liquidity.
dc.format.extent150 pages
dc.language.isoeng
dc.publisherTemple University. Libraries
dc.relation.ispartofTheses and Dissertations
dc.rightsIN COPYRIGHT- This Rights Statement can be used for an Item that is in copyright. Using this statement implies that the organization making this Item available has determined that the Item is in copyright and either is the rights-holder, has obtained permission from the rights-holder(s) to make their Work(s) available, or makes the Item available under an exception or limitation to copyright (including Fair Use) that entitles it to make the Item available.
dc.rights.urihttp://rightsstatements.org/vocab/InC/1.0/
dc.subjectFinance
dc.titleESSAYS ON EMPIRICAL FINANCE
dc.typeText
dc.type.genreThesis/Dissertation
dc.contributor.committeememberLi, Yuanzhi
dc.contributor.committeememberBalsam, Steven
dc.contributor.committeememberRen, Charlotte R.
dc.description.departmentBusiness Administration/Finance
dc.relation.doihttp://dx.doi.org/10.34944/dspace/6541
dc.ada.noteFor Americans with Disabilities Act (ADA) accommodation, including help with reading this content, please contact scholarshare@temple.edu
dc.description.degreePh.D.
dc.identifier.proqst14477
dc.date.updated2021-05-19T16:11:21Z
refterms.dateFOA2021-05-24T19:02:20Z
dc.identifier.filenameGao_temple_0225E_14477.pdf


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