RESEARCH
RESEARCH
Merger-Driven Listing Dynamics
with B. Espen Eckbo
Journal of Financial and Quantitative Analysis, Forthcoming
Abstract: Stock-market effectiveness in attracting and retaining firms under public ownership depends not only on stand-alone firms' net listing benefits but also on gains from merging with a public acquirer. Using a novel merger-adjusted listing count, we show that the dramatic (≈50%) post-1996 U.S. listing decline – previously attributed to declining listing benefits – is reversed as the "missing" firms de facto continue existing inside their public acquirers. Our merger adjustment also eliminates the U.S. listing gap, pointing instead to a distinct U.S. listing advantage: providing access to a well-functioning market for complex merger transactions.
Presentations: Australasian Finance and Banking Conference; Bergen Entrepreneurship and Finance Conference; Boca Corporate Finance and Governance Conference; Economics, Business, and Organization Research Conference; EFMA Annual Meeting; Finance, Organizations and Markets Conference; FMA Annual Meeting; International Young Finance Scholars Conference; MFA Annual Meeting; Nordic Initiative for Corporate Economics Conference; PhD Nordic Finance Workshop; SFS Cavalcade North America; The Finance Symposium; Vietnam Symposium in Banking and Finance; World Finance Conference // Dartmouth College; Humboldt University Berlin; Iowa State University; NHH Norwegian School of Economics; Oslo Metropolitan University; WU Vienna
In media: Dagens Næringsliv (2024-02-22) (2024-11-13)
Why Are Acquisitions of Unlisted Firms Better Deals? Evidence from OTC Markets
Single-authored
Abstract: The extant literature shows that M&A bidder announcement returns are higher when targets are unlisted. Because of data limitations, the source of these gains – either that acquirers pay less or deal value creation is greater – remains elusive. I introduce a novel unlisted target type: firms with equity traded over the counter (OTC). I find that OTC target premiums are higher than in listed target deals and originate from shared synergy gains, consistent with improvements to targets’ access to capital. Both acquirer returns and offer premiums increase when OTC targets are closer to private than listed along a stock liquidity continuum, implying that these incremental bidder gains are not at target shareholders' expense.
Presentations (incl. scheduled): AFA Poster Session; Australasian Finance and Banking Conference; Commonwealth Finance Workshop; FMA Doctoral Student Consortium; Young Scholars Nordic Finance Workshop // Boston College (PhD seminar); NHH Norwegian School of Economics; Texas Tech University; Tulane University; UNC Charlotte; University of Illinois Chicago; Virginia Tech
Impact Investing and Worker Outcomes
with Josh Lerner and Gordon Phillips
Abstract: Impact investors claim to distinguish themselves from traditional venture capital and growth equity investors by also pursuing ESG objectives. Whether they successfully do so in practice is unclear. We use confidential Census Bureau microdata to assess worker outcomes across portfolio companies. Consistent with earlier studies, impact investors are more likely than other private equity firms to fund businesses in economically disadvantaged areas, and the performance of these companies lags behind those held by traditional private investors. We show that post-funding impact-backed firms are more likely to hire minorities, unskilled workers, and individuals with lower historical earnings, perhaps reflecting the higher representation of minorities in top positions. They also allocate wage increases more favorably to minorities and rank-and-file workers than VC-backed firms. Our results are consistent with impact investors and their portfolio companies acting according to non-pecuniary social goals.
Presentations (incl. scheduled): Advances in VC and PE Research Workshop; FIRS Conference; Midwest Finance Association // Fordham University; IFN Research Institute of Industrial Economics; NHH Norwegian School of Economics; UNC Chapel Hill; University of Iowa; Virginia Tech
Entrepreneurial Financing Choice in Securities Crowdfunding
with Matteo Pirovano, Davide Sinno, and Trang Vu
The Road to Superstardom: Sources of Growth
with B. Espen Eckbo and Gordon Phillips