Andrei Simonov

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Exploiting the Japanese banking crisis of the 1990s as a laboratory, we investigate the effects of bank bailouts on the supply of credit and on the valuations and the real performance of banks’ clients. Consistent with recent theories, our findings indicate that the size of the capital injections relative to the banks’ initial financial conditions is(More)
This paper uses investor-level data to provide direct evidence for an intuitive but surprisingly untested proposition that investors make larger investment mistakes when valuation uncertainty is higher and stocks are more difficult to value. Using multiple measures of valuation uncertainty and multiple behavioral bias proxies, I show that individual(More)
The Yukos affair, a state-led assault on controlling shareholders of a private Russian oil company, demonstrated the shaky nature of property rights in emerging markets. As it appeared, the market was more effective in determining the underlying causes than business and political analysts. While some rating agencies first predicted no threat to company(More)
This paper reviews the literature on the determinants of entrepreneurial activity and investigates to what extent differences in the population, business environment and cultural values contribute to explaining differences in entrepreneurial activity across Swedish municipalities. Individual characteristics and business environment are the most important(More)
We study the link between social interaction and portfolio choice. We concentrate on a form of interaction that is rooted back in the past: college-based interaction — defined as the one that relates the portfolio choice of an investor to that of the other investors who went to the same college. We explain it in terms of a common cultural imprinting and the(More)
We study the process of wealth creation by alliances and relate it to the quality of governance of firms. We argue that alliances increase firm’s operating flexibility, reduce the agency costs related to the free-cash flows as well as the agency costs related to the distortion in the allocation of capital within the firm. Given the constraints on the use of(More)
We study how the trade-off between being an entrepreneur and investing in the financial markets is affected by cognitive ability and social skills. We test these hypotheses using a unique dataset that has available information on individual characteristics and choices for a representative sample of the Swedish population over 1966-2006. We show that social(More)
  • Alexandra Niessen-Ruenzi, Elroy Dimson, +8 authors Laura Starks
  • 2011
We suggest customer based discrimination as one potential explanation for the low fraction of females in the mutual fund industry. Consistent with investors being prejudiced and stereotyping female fund managers as less skilled, we find that female managed funds experience significantly lower inflows. This result is obtained using market data as well as(More)
We study the IPO process, focusing on the effects of the degree of portfolio diversification of the shareholders taking the firm public. Standard theory suggests that less diversified shareholders have more to gain from taking the firm public, and are more willing to accept a lower price for the sale of their shares, i.e. tolerate higher underpricing. We(More)
We propose that an active takeover market also provides incentives by o¤ering acquisition opportunities to successful managers. This allows …rms to reduce perfomance-based compensation and can rationalize loss-making acquisitions. At the same time, takeovers remain a substitute to board dismissal for the replacement of poorly performing managers. The joint(More)