Berk A. Sensoy

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We study the effect of the recent financial crisis on corporate investment. The crisis represents an unexplored negative shock to the supply of external finance for nonfinancial firms. Corporate investment declines significantly following the onset of the crisis, controlling for firm fixed effects and time-varying measures of investment opportunities.(More)
Almost one-third of actively managed, diversified U.S. equity mutual funds specify a size and value/growth benchmark index in the fund prospectus that does not match the fund’s actual style. Nevertheless, these ‘‘mismatched’’ benchmarks matter to fund investors. Performance relative to the specified benchmark is a significant determinant of a fund’s(More)
We study how firm characteristics evolve from early business plan to initial public offering (IPO) to public company for 50 venture capital (VC)-financed companies. Firm business lines remain remarkably stable while management turnover is substantial. Management turnover is positively related to alienable asset formation. We obtain similar results using all(More)
  • Mark Gertler, Ran Duchin, Oguzhan Ozbas, Berk A. Sensoy, David Scharfstein
  • 2010
Cyclicality in the supply of business credit has been the focus of a considerable amount of research. This cyclicality can stem from shocks to borrowers’ collateral, which affect firms’ ability to raise capital if agency and information problems are significant (Ben S. Bernanke and Mark Gertler 1989). Or it can stem from shocks to bank capital, which affect(More)
Public and private equity waves move together. Using quarterly cash flow data for a large sample of venture capital and buyout funds from 1984-2010, we investigate the implications of this co-cyclicality for understanding private equity cash flows and performance. In the cross-section, varying the beta used to assess relative performance has a large effect(More)
We examine whether organizational form matters for a firm’s cost of capital. Contrary to the conventional view, our model shows that coinsurance among a firm’s business units can reduce systematic risk through the alleviation of countercyclical deadweight costs. Using measures of implied cost of capital constructed from analyst forecasts, we find that(More)
When there is uncertainty about a CEO’s quality, news about the firm causes rational investors to update their expectation of the firm’s value for two reasons: Updates occur because of the direct effect of the news, and also because news leads investors to update their assessment of the CEO’s quality, which changes expected future cash flows. As a CEO’s(More)
We model corporate voting outcomes when an informed trader, such as a hedge fund, can establish separate positions in a firm’s shares and votes (“empty voting”). The positions are separated by borrowing shares on the record date, hedging economic exposure, or trading between record and voting dates. We find that the trader’s presence can improve efficiency(More)
Over the last two decades, the number (enterprise value) of leveraged buyout transactions involving privately held targets totals 10,013 ($855 billion), accounting for 46% (21%) of the worldwide leveraged buyout market. Yet the vast majority of academic studies focus on the buyouts of publicly held targets. This paper investigates the motives for leveraged(More)