Abstract

Empirical methods in the finance literature seek to identify the true effects of economic forces. In this dissertation I utilize a variety of econometric techniques to understand the role of liquidity for firms and capital markets. In the first essay, I use an instrumental variables approach to identify how financing flexibility in the equity channel impacts firms' acquisition behavior. In the second essay, I employ a difference-in-differences technique, among others, to address how the fragmentation of U.S. equity markets in the last twenty-five years has impacted the market quality and investor participation of the assets. Finally, in the third essay I use option prices to gauge beliefs and disaster-risk associated with bad news and its differential impact on foreign exchange rates. Overall, these essays highlight the economics around liquidity through a variety of empirical techniques.

Committee Chair

Ohad Kadan

Committee Members

Mark Leary, Anjan Thakor, Bruce Petersen, Matthew Ringgenberg,

Comments

Permanent URL: https://doi.org/10.7936/K7X63KCS

Degree

Doctor of Philosophy (PhD)

Author's Department

Business Administration

Author's School

Graduate School of Arts and Sciences

Document Type

Dissertation

Date of Award

Spring 5-15-2017

Language

English (en)

Available for download on Saturday, May 15, 2117

Included in

Business Commons

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