George Kanatas

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We provide empirical evidence that a firm’s overall visibility with investors, as measured by its product market advertising, has important consequences for the stock market. Specifically we show that firms with greater advertising expenditures, ceteris paribus, have a larger number of both individual and institutional investors, and better liquidity of(More)
Informational scope economies provide a cost advantage to universal banks offering “onestop shopping” for lending and underwriting that enables them to “lock in” their clients’ subsequent business. This market power reduces universal banks’ incentive, relative to that of specialized investment banks, to apply costly underwriting efforts; consequently,(More)
We provide evidence that religiosity deters undesirable corporate behavior. Firms headquartered in more religious counties are less likely to backdate options, practice aggressive earnings management, and be the target of class action securities lawsuits. In addition, we find that our measures of religiosity are negatively correlated with the size of(More)
We analyze firms’ choice between exchanges to list equity (including multiple listings), and exchanges choice of listing standards for firms which apply for listing. We model an equity market characterized by asymmetric information, where outsiders can reduce their informational disadvantage relative to insiders by producing (noisy) information about firms(More)
This paper examines the interaction between capital structure and advertising competition. Using a sample of firms that raise significant amounts of capital, we find that firms whose financial leverage has decreased as a result of their new funding increase their advertising significantly more than firms whose leverage has increased. We also find that these(More)
a r t i c l e i n f o a b s t r a c t We examine implications of a society's cultural emphasis on moral sentiments. Entrepreneurs and investors interact in a game that entails both adverse selection and moral hazard; entrepreneurs may attempt to breach their contracts and expropriate investors. An agent is born into a particular culture but chooses whether(More)
Ethical choices of rational agents in our model are a fundamental cause of economic prosperity and growth and a critical factor in the development of property rights institutions. Financial transactions are a key feature, providing the channel through which morality and the institutional framework affect economic well-being. In equilibrium a more moral(More)