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Conference Paper: Does short selling discipline managerial empire building?
Title | Does short selling discipline managerial empire building? |
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Authors | |
Keywords | Short selling Empire building Governance Mergers and acquisitions Regulation SHO |
Issue Date | 2014 |
Publisher | Financial Management Association International. |
Citation | The 2014 FMA Asian Conference, Tokyo, Japan, 8-10 May 2014. How to Cite? |
Abstract | This paper explores the discipline effect of short selling on managerial empire building. Employing short-selling data from 2002-2011, we document a negative association between the stock lending supply and the subsequent abnormal capital investment. We also find a positive association between the lending supply and the mergers and acquisitions announcement returns of acquiring firms. Firms with higher lending supplies also have higher Tobin’s Q in the subsequent year. In addition, the discipline effect is stronger for firms with higher managers’ wealth-performance sensitivity and with lower financial constraints, and for stock-financing acquisition deals. Alleviating the endogeneity concern, our multivariate difference-in-difference analysis shows that the lending supply is a more effective discipline force for firms that are in the Regulation SHO-Pilot Program during 2005 to 2007. |
Description | Session 20 - Monitors and Governance Quality The Conference program's website is located at http://www.fma.org/Tokyo/TokyoProgramPrelim.htm |
Persistent Identifier | http://hdl.handle.net/10722/201628 |
DC Field | Value | Language |
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dc.contributor.author | Chang, EC | en_US |
dc.contributor.author | Lin, TC | en_US |
dc.contributor.author | Ma, X | en_US |
dc.date.accessioned | 2014-08-21T07:33:11Z | - |
dc.date.available | 2014-08-21T07:33:11Z | - |
dc.date.issued | 2014 | en_US |
dc.identifier.citation | The 2014 FMA Asian Conference, Tokyo, Japan, 8-10 May 2014. | en_US |
dc.identifier.uri | http://hdl.handle.net/10722/201628 | - |
dc.description | Session 20 - Monitors and Governance Quality | - |
dc.description | The Conference program's website is located at http://www.fma.org/Tokyo/TokyoProgramPrelim.htm | - |
dc.description.abstract | This paper explores the discipline effect of short selling on managerial empire building. Employing short-selling data from 2002-2011, we document a negative association between the stock lending supply and the subsequent abnormal capital investment. We also find a positive association between the lending supply and the mergers and acquisitions announcement returns of acquiring firms. Firms with higher lending supplies also have higher Tobin’s Q in the subsequent year. In addition, the discipline effect is stronger for firms with higher managers’ wealth-performance sensitivity and with lower financial constraints, and for stock-financing acquisition deals. Alleviating the endogeneity concern, our multivariate difference-in-difference analysis shows that the lending supply is a more effective discipline force for firms that are in the Regulation SHO-Pilot Program during 2005 to 2007. | - |
dc.language | eng | en_US |
dc.publisher | Financial Management Association International. | - |
dc.relation.ispartof | FMA Asian Conference 2014 | en_US |
dc.subject | Short selling | - |
dc.subject | Empire building | - |
dc.subject | Governance | - |
dc.subject | Mergers and acquisitions | - |
dc.subject | Regulation SHO | - |
dc.title | Does short selling discipline managerial empire building? | en_US |
dc.type | Conference_Paper | en_US |
dc.identifier.email | Chang, EC: ecchang@hku.hk | en_US |
dc.identifier.email | Lin, TC: chunlin@hku.hk | en_US |
dc.identifier.email | Ma, X: xrma@business.hku.hk | en_US |
dc.identifier.authority | Chang, EC=rp01050 | en_US |
dc.identifier.authority | Lin, TC=rp01077 | en_US |
dc.description.nature | postprint | - |
dc.identifier.hkuros | 235014 | en_US |