Investment Decisions

Working Paper

10 May 2021

Are Women Undervalued? Board Gender Diversity and IPO Underpricing

We show that investor preferences for diversity have had a significant effect on the initial returns earned by U.S. firms going public with gender diverse boards over the past decade. There is no difference in economic fundamentals such...

P. Raghavendra Rau | Jason Sandvik | Theo Vermaelen
16 March 2020

Digital Transformation in the Hedge Fund and Private Equity Industry

The digital transformation is disrupting the financial sector. Venture capital, private equity and hedge funds are also affected. We see more and more firms implement emerging technologies in their investment process. There are...

Omololu Bajulaiye | Mark Fenwick | Ivona Skultetyova | Erik Vermeulen
04 February 2021

Wage gap and stock returns: Do investors dislike pay inequality?

Recent research shows that a high wage-gap between managers and workers identifies better-performing firms, but the stock market does not seem to price this information. In this paper, we show that not all investors neglect pay...

Ingolf Dittmann | Maurizio Montone | Yuhao Zhu
04 June 2021

Boosting International Investment: The Role of Expert Assessments of Corporate Governance

Global investors often demand independent assessments of firms’ governance mechanisms. However, the supply of such evaluations is subject to two important limitations: assessment error and lack of coverage in certain regions....

Pietro Bonetti | Gaizka Ormazabal
20 July 2017

Earnings Management and Managerial Honesty: The Investors’ Perspectives

Extant research shows that CEO characteristics affect earnings management. This paper studies how investors infer a specific characteristic of CEOs, namely moral commitment to honesty, from earnings management and how how...

Alexander Wagner | Rajna Gibson Brandon | Matthias Sohn | Carmen Tanner