Seminar (Dept. of Finance)

Theme：Information Complementarities and the Dynamic of Transparency Shock Spillovers

Speaker：Sudipto Dasgupta（Chinese University of Hong Kong）

Coordinator：Xiaodan Gao

Time：2020-09-25 10:00

Address：Online

Language：English

Zoom APP:

https://zoom.com.cn/j/61302101852?pwd=VG1kMDlZb2NVNFhyZUtWT0VXb0RQQT09

ID：613 0210 1852

Password：495860

ABSTRACT:

We show that information complementarities play an important role in the spillover of transparency shocks. We exploit staggered revelation of financial fraud by high-profile firms and find that the implied cost of capital increases for “close” industry peers relative to “distant” peers. The effect is particularly strong when the close peers share common analysts and institutional ownership with the fraud firm. Disclosure also increases, especially for firms with co-coverage and co-ownership. While disclosure continues to increase, the cost of equity subsequently decreases. Firms’ financing patterns tilt more towards debt financing initially at the expense of equity, but eventually revert.

SHORT BIOGRAPHY:

Professor Sudipto Dasgupta is currently a Professor at the Department of Finance at the Chinese University of Hong Kong. He previously held academic positions at Lancaster University (where he was Distinguished Professor of Finance), The Hong Kong University of Science and Technology (where he was Department Head during 2013-2015; Chair Professor from 2008, and Professor from 2004), The Jawaharlal Nehru University, The Indian Statistical Institute, and The University of Southern California. He has been the Managing Editor of the International Review of Finance since 2008 and is a Senior Fellow of the Centre for Economic Policy Research (CEPR) and the Asian Bureau of Finance and Economics Research (ABFER). Dasgupta obtained his Ph.D. in Economics from the University of Southern California in 1988 and has been teaching Finance since 1993. He has broad research interests with a focus on Corporate Finance.