Venue:
Londone Wine Bar, 415 Sansome Street, San Francisco
415-788-4811
Speaker: Ashley Wang, Assistant Professor, UC
Irvine
Topic: The Help
that May Hurt: On the Link between Institutional Ownership and Cost of Debt
Capital
Recent
literature has documented a link between institutional equity ownership (IO) to
cost of debt capital, and interpreted it as a corporate governance effect.
However, separate literature has also interpreted IO as an information asymmetry
proxy. Given the heterogeneity among IO and their different association with
corporate governance and information asymmetry effects, here we look at sharper
version of IO measures, which allows us to distinguish between the two effects.
Based on most up-to-date and comprehensive bond pricing data spanning the past
20 years, we find that yield spreads narrow (widen) with an increase in the
equity institutional group that is more(less) sensitive to information asymmetry
and is least (most) expected to help improve corporate governance. The
contrasting patterns between yield spreads and various IO persist after
controlling for potential endogeneity and other information asymmetry measures.
Overall, our findings provide strong support for the information asymmetry
effect on cost of debt, and highlight the importance of distinguishing various
types of institutional investors.
Professor Ashley Wang's primary research interest is empirical asset pricing.
Her current research involves liquidity risk, institutional equity flows, equity
ownership structure, and the implications on stock and bond pricing. She has
also conducted an empirical analysis on whether the electricity forward prices
reflect compensation for risk exposures. Professor Wang's papers have been
published in the Journal of Finance. She has presented her work at major finance
conferences and universities, both in U.S. and internationally. She is a member
of the American Finance Association, Western Finance Association, and the
Society of Financial Studies.
Meeting Registration
SF QWAFAFEW
manages the meeting registration and dues payment process using Acteva.
Please click on the
link below to register for the meeting. At this point, we request both members
and non-members to register. If you are a member, you can pay the annual
dues of $50 and there will be no additional charges for the meetings. If
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Admissions:
Members: Free.
Non-members: $15/person. You can sign up for the membership at the Acteva
registration page. QWAFAFEW will provide appetizers and there will be a cash
bar.
Chapter
History
The San
Francisco Chapter of QWAFAFEW was launched in the spring of 2004. The
presentations from a few of our earlier meetings are posted on this website. We
normally meet on the first or second Mondays of every month at 5:30
pm at the London Wine Bar,
415 Sansome Street, San
Francisco (415) 788-4811
We would like to
thank our sponsoring firms, whose funding has assisted us greatly in
establishing this chapter:
Journal of Investment
Management
Moody's KMV
MSCI-BARRA
Quantal International
Starmine
Vestek
Future
Speakers
If you would like to suggest a
speaker, including yourself, please send name, topic, and contact information to
speakers.sf@qwafafew.org.
Previous
Speakers
List of speakers at the
previous QWAFAFEW meetings
San
Francisco QWAFAFEW Steering Committee
(Alphabetical Order)
Ralph Goldsticker, Mellon Capital
Management
Rosy Macedo, Thomas J Watson Fellowship
Program
Robert Maxim, Quantal
International
Matt O'Hara, Barclays Global Investors
Jim Quinn, Quantal
International
Rey Santodomingo, MSCI-BARRA
Membership &
Inquiries
Annual membership fee is a $50. Members will enjoy free attendance at
meetings. To be added/removed to the SF QWAFAFEW mailing list please send email
to mailinglist.sf@qwafafew.org.
For general inquiries, please
send email to sanfrancisco@qwafafew.org.
Chicago
