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[Academic Events] Monday Lunch Seminars Giovanna Nicodano (Collegio Carlo Alberto)

"Does Bankruptcy Risk Increase Value?" Abstract We show that bankruptcy exposure increases ex-post average firm value due to a survivorship bias. The reason is that bankruptcy cancels rms with the lowest realized cash ows from databases. Such bias gives rise to known pricing puzzles. It generates a discount on diversified companies when diversification helps their survival. Moreover, it…

[Academic Events] Seminars in Economics Marcin Kacperczyk (Imperial College London)

"Do Foreign Investors Improve Market Efficiency?" Abstract We study the impact of foreign institutional investors on global capital allocation and welfare using firm-level international data. Using MSCI index inclusion as an exogenous shock to foreign ownership, we show that greater foreign ownership leads to more informative stock prices and this effect arises more from increased…