Andrei Simonov

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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)
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)
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)
Using a data set that provides unprecedented details on the stockholders of Swedish listed companies, we analyze whether investors take into account corporate governance when they select stocks. We identify the companies where shareholders' value is less likely to be maximized by using the wedge between the control and cash flow rights of the principal(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)
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)
  • 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 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 propose that an active takeover market also provides incentives by o¤er-ing 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)
This research investigates the real effects of public liquidity provision. Using the Commercial Paper Funding Facility's (CPFF) eligibility criteria for non-financial commercial paper issuers as the identification strategy, we show that firms with access to the CPFF were able to mitigate the financing disruptions caused by the Lehman Brothers bankruptcy and(More)