Johan Sulaeman

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One of the most prominent stylized facts in corporate finance is that firms are more likely to issue equity following periods of high stock returns. We document that firms exhibit such timing behavior only in response to high returns that coincide with strong institutional investor demand for their stock. When not accompanied by institutional purchases,(More)
We use a natural experiment to investigate the impact of participation constraints on individuals' decisions to invest in the stock market. Unexpected inheritance due to sudden deaths results in exogenous variation in financial wealth, and allows us to examine whether fixed entry and ongoing participation costs cause non-participation. We have three key(More)
I analyze the impact of competition on the risk premia of R&D ventures engaged in a multiple-stage patent race with technical and market uncertainty. After solving in closedform for the case of a two-stage race in continuous-time, I show that a firm’s risk premium decreases as a consequence of technical progress and increases when a rival pulls ahead in the(More)
Strike Three: Umpires’ Demand for Discrimination We explore how umpires’ racial/ethnic preferences are expressed in their evaluation of Major League Baseball pitchers. Controlling for umpire, pitcher, batter and catcher fixed effects and many other factors, strikes are more likely to be called if the umpire and pitcher match race/ethnicity. This effect only(More)
Financial misconduct (FM) rates differ widely between major U.S. cities, about as much as between industries. Although spatial differences in enforcement or firm characteristics do not account for these patterns, city-level culture appears to be very important. For example, FM rates are strongly related to other unethical behavior in the city, involving its(More)
This paper studies the presence of hedge funds in the Chapter 11 process and their effects on bankruptcy outcomes. Hedge funds strategically choose positions in the capital structure where their actions could have a bigger impact on value. Their presence, especially as unsecured creditors, helps balance power between the debtor and secured creditors. Their(More)
We study two distinct effects of local religions on organizational risk-taking: religious beliefs share a common aversion to pure risk but have diverging attitudes toward speculative risk. As predicted, we find that mutual fund managers’ speculative risk-taking behaviors vary with specific local religious beliefs – funds in low-Protestant (or high-Catholic)(More)
We examine whether exogenous shocks to firms’ information environments generated by Regulation Fair Disclosure (Reg FD) and Sarbanes-Oxley Act (SOX) influenced the degree of local bias of institutional investors. Our main conjecture is that as financial regulation makes the information environment more competitive, the local informational advantage of(More)
We develop a 10K-based measure of spatial variation in the availability of value-relevant information that reflects the multi-dimensional nature of firm location. Spatially distributed information generates locationbased information asymmetries that affect institutional portfolio decisions and performance. Institutions overweigh firms with greater local(More)