Show simple item record

dc.contributor.advisorAnderson, Ronald
dc.creatorKarim, Md Masud
dc.date.accessioned2021-08-23T18:17:38Z
dc.date.available2021-08-23T18:17:38Z
dc.date.issued2021
dc.identifier.urihttp://hdl.handle.net/20.500.12613/6889
dc.description.abstractMy dissertation consists of two chapters exploring several aspects of empirical corporate finance with a special focus on founder CEOs and family firms. Chapter 1 focuses on the impact of founder CEO leadership on firm value in publicly listed U.S. firms. Previous research on how founder CEOs affect firm value shows mixed results. Using a natural experiment whereby I measure the impact of the sudden deaths of CEOs during the period 1964–2018, I document that stock prices increase by 1.56% upon founder CEOs’ deaths and decrease by 2.89% upon professional CEOs’ deaths. Next, I develop a novel measure of managerial private benefits and discuss several new insights. First, I document that the positive stock price reactions to the sudden deaths of founder CEOs are mainly driven by the fact that founder CEOs extract two times greater private benefits relative to professional CEOs. Second, segregating private benefits into two parts – nepotism and non-nepotism – I find that investors react to both types of private benefits. Third, investor reactions are more pronounced for tunneling-related disclosed private benefits than for investment-related non-disclosed private benefits. Fourth, investors reactions are more pronounced for private benefits related to underinvestment than for private benefits related to overinvestment. Overall, my paper highlights the impact of CEO leadership styles on shareholder wealth. Chapter 2 examines significant family ownership in publicly listed U.S. firms. Instead of holding a diversified portfolio, family owners, such as the Waltons of Walmart, hold large fractions of their wealth in a single stock. To explain this decision, we build a unique model of ambiguity aversion wherein the family’s information advantage in their firm allows them to more accurately estimate value-at-risk in tail events relative to the diversified portfolio. Using an index of macroeconomic uncertainty, we find a strong, negative relation between the uncertainty beta and both family ownership and involvement. Also consistent with our predictions, we document that families with high absolute wealth or risk aversion are unlikely to exit the firm. Our analysis provides an explanation for a family owner’s decision to hold a concentrated stake in a single firm in countries with well-developed financial markets and legal regimes.
dc.format.extent140 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.subjectAmbiguity
dc.subjectFamily ownership
dc.subjectFounder CEO
dc.subjectinformation advantage
dc.subjectManagerial private benefits
dc.subjectSudden deaths
dc.titleESSAYS IN EMPIRICAL CORPORATE FINANCE
dc.typeText
dc.type.genreThesis/Dissertation
dc.contributor.committeememberBakshi, Gurdip
dc.contributor.committeememberBakshi, Xiaohui Gao
dc.contributor.committeememberJohn, Kose
dc.contributor.committeememberNaveen, Lalitha
dc.contributor.committeememberBasu, Sudipta, 1965-
dc.description.departmentBusiness Administration/Finance
dc.relation.doihttp://dx.doi.org/10.34944/dspace/6871
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.proqst14602
dc.creator.orcid0000-0001-6939-1968
dc.date.updated2021-08-21T10:08:05Z
refterms.dateFOA2021-08-23T18:17:39Z
dc.identifier.filenameKarim_temple_0225E_14602.pdf


Files in this item

Thumbnail
Name:
Karim_temple_0225E_14602.pdf
Size:
923.0Kb
Format:
PDF

This item appears in the following Collection(s)

Show simple item record