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Your search keyword '"Laura Xiaolei Liu"' showing total 2 results
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2 results on '"Laura Xiaolei Liu"'

1. Securitization and Capital Structure in Nonfinancial Firms: An Empirical Investigation

Author

Laura Xiaolei Liu, Mike Qinghao Mao, Greg Nini, Michael L. Lemmon, and Business Economics

Subjects
Capital structure, Shareholder, Debt, media_common.quotation_subject, Bond, Economics, Financial system, Securitization, Credit enhancement, Off-balance-sheet, Stock (geology), media_common
Abstract

Contrary to recent accounts of off-balance sheet securitization by financial firms, we show that asset securitization by nonfinancial firms provides a valuable form of financing to shareholders without harming firms’ debtholders. Using data from firms’ SEC filings, we find that securitization is attractive to firms in the middle of the credit quality distribution, which are the firms with the most to gain. Upon initiation, firms experience positive abnormal stock returns, zero abnormal bond returns, and largely use the securitization proceeds to repay existing debt. Securitization helps minimize financing costs by reducing expected bankruptcy costs and providing access to segmented credit markets.

Published
2014

2. The Long-Run Role of the Media: Evidence from Initial Public Offerings.

Author

Laura Xiaolei Liu, Sherman, Ann E., and Yong Zhang

Subjects
MASS media, GOING public (Securities), LONG run (Economics), CORPORATE finance, SECURITIES, FINANCIAL institutions, LIQUIDITY (Economics), INSTRUMENTAL variables (Statistics)
Abstract

The unique characteristics of the U.S. initial public offering (IPO) process, particularly the strict quiet period regulations, allow us to explore the effects of media coverage when the coverage does not contain genuine news (i.e., hard information that was previously unknown). We show that a simple, objective measure of pre-IPO media coverage is positively related to the stock’s long-term value, liquidity, analyst coverage, and institutional investor ownership. Our results are robust to additional controls for size, to using abnormal or excess media, and to an instrumental variable approach. We also find that pre-IPO media coverage is negatively related to future expected returns, measured by the implied cost of capital. In all, we find a long-term role for media coverage, consistent with Merton’s attention or investor recognition hypothesis. [ABSTRACT FROM AUTHOR]

Published
2014
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