Author
Jiekun Huang
Other affiliations: National University of Singapore
Bio: Jiekun Huang is an academic researcher from University of Illinois at Urbana–Champaign. The author has contributed to research in topics: Institutional investor & Corporate governance. The author has an hindex of 17, co-authored 36 publications receiving 2112 citations. Previous affiliations of Jiekun Huang include National University of Singapore.
Papers
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TL;DR: This article examined corporate financial and investment decisions made by female executives compared to male executives and found that male executives undertake more acquisitions and issue debt more often than female executives, while female executives place wider bounds on earnings estimates and are more likely to exercise stock options early.
Abstract: We examine corporate financial and investment decisions made by female executives compared to male executives Male executives undertake more acquisitions and issue debt more often than female executives Further, acquisitions made by firms with male executives have announcement returns approximately 2% lower than those made by female executive firms, and debt issues also have lower announcement returns for firms with male executives Female executives place wider bounds on earnings estimates and are more likely to exercise stock options early This evidence suggests men exhibit relative overconfidence in significant corporate decision-making compared to women
840 citations
TL;DR: This paper examined corporate financial and investment decisions made by female executives compared with male executives and found that female executives place wider bounds on earnings estimates and are more likely to exercise stock options early.
772 citations
TL;DR: Goldstein et al. as discussed by the authors analyzed the effects of institutional cross-ownership of same-industry firms on product market performance and behavior and found that cross-held firms experience significantly higher market share growth than do non-cross-held ones.
Abstract: We analyze the effects of institutional cross-ownership of same-industry firms on product market performance and behavior. Our results show that cross-held firms experience significantly higher market share growth than do non-cross-held firms. We establish causality by relying on a difference-in-differences approach based on the quasi-natural experiment of financial institution mergers. We also find evidence suggesting that institutional cross-ownership facilitates explicit forms of product market collaboration (such as within-industry joint ventures, strategic alliances, or within-industry acquisitions) and improves innovation productivity and operating profitability. Overall, our evidence indicates that cross-ownership by institutional blockholders offers strategic benefits by fostering product market coordination.Received November 12, 2015; editorial decision December 31, 2016 by Editor Itay Goldstein.
180 citations
Posted Content•
TL;DR: In this paper, the role of institutional investors in initial public offerings (IPOs) was analyzed using a large sample of transaction-level institutional trading data, and it was found that institutions sell 70.2% of their IPO allocations in the first year, fully realize the money left on the table, and do not dissipate these profits in post-IPO trading.
Abstract: In this paper, we use a large sample of transaction-level institutional trading data to analyze the role of institutional investors in initial public offerings (IPOs). The theoretical literature on IPOs has long argued that institutional investors possess private information about IPOs and that underpricing is a mechanism for compensating them to reveal this private information. We study whether institutions indeed have private information about IPOs, retain their information advantage in post-IPO trading, and are able to realize significant profits from their participation in IPOs. We also study institutional IPO allocations and allocation sales to analyze whether institutions play an important role in supporting IPOs in the aftermarket and are rewarded by underwriters for playing such a role. We find that institutions sell 70.2% of their IPO allocations in the first year, fully realize the “money left on the table,” and do not dissipate these profits in post-IPO trading. Further, institutions hold allocations in IPOs with weaker post-issue demand for a longer period, and they are rewarded for this by underwriters with more IPO allocations. Finally, institutional trading has predictive power for long-run IPO performance, especially in IPOs in which they received allocations; however, this predictive power decays over time. Overall, our results suggest that institutional investors possess significant private information about IPOs, play an important supportive role in the IPO aftermarket, and receive considerable compensation for their participation in IPOs.
137 citations
TL;DR: In this article, the role of institutional cross-ownership in internalizing corporate governance externalities using granular mutual fund proxy voting data was analyzed and it was found that high aggregate cross ownership positively predicts management losing a vote.
118 citations
Cited by
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01 Jan 2012
TL;DR: The influence of institutional investors on myopic R＆D investment behavior was discussed by Bushee as discussed by the authors, who claimed that institutional investors had a profound influence on investment behavior.
Abstract: 机构投资者作为证券市场中的重要力量,越来越受到理论界和实务界的关注。论文对宾夕法尼亚大学沃顿商学院会计学教授布赖恩-布希（Brian Bushee）的论文＂The influence of institutional investors on myopic R＆D investment behavior＂（机构投资者对企业短视研发投资行为的影响,以下简称Bushee（1998））进行评价并提出相关的建议和研究方向。
1,246 citations
01 Jan 2012
TL;DR: In this paper, a simple equilibrium model with liquidity risk is proposed, where a security's required return depends on its expected liquidity as well as on the covariances of its own return and liquidity with the market return.
Abstract: This paper solves explicitly a simple equilibrium model with liquidity risk. In our liquidityadjusted capital asset pricing model, a security s required return depends on its expected liquidity as well as on the covariances of its own return and liquidity with the market return and liquidity. In addition, a persistent negative shock to a security s liquidity results in low contemporaneous returns and high predicted future returns. The model provides a unified framework for understanding the various channels through which liquidity risk may affect asset prices. Our empirical results shed light on the total and relative economic significance of these channels and provide evidence of flight to liquidity. r 2005 Elsevier B.V. All rights reserved.
1,156 citations
TL;DR: Shapiro and Varian as mentioned in this paper reviewed the book "Information Rules: A Strategic Guide to the Network Economy" by Carl Shapiro and Hal R. Varian and found that it is a good book to read.
Abstract: The article reviews the book “Information Rules: A Strategic Guide to the Network Economy,” by Carl Shapiro and Hal R. Varian.
1,029 citations
TL;DR: In this paper, the authors extend the literature on how managerial traits relate to corporate choices by documenting that firms run by female CEOs have lower leverage, less volatile earnings, and a higher chance of survival than otherwise similar firms running by male CEOs, and that transitions from male to female CEOs are associated with economically and statistically significant reductions in corporate risk-taking.
884 citations
TL;DR: Wang et al. as discussed by the authors examined the effect of board gender diversity on firm performance in China's listed firms from 1999 to 2011 and found that female executive directors have a stronger positive effect on the firm performance than female independent directors, indicating that the executive effect outweighs the monitoring effect.
709 citations