Markku Kaustia's and Ville Rantala's paper accepted to Journal of Financial Economics
Article "Social Learning and Corporate Peer Effects" by and has been accepted for publication in the Journal of Financial Economics.
Abstract:
We find that firms are more likely to split their stock if their peer firms have recently done so. The effect is comparable to an increase of 40-50% in the share price. Splitting probability is also increasing in the announcement returns of peer splits. These results are consistent with social learning from peers’ actions and outcomes. The unique features of the setting and various further tests render alternative explanations unlikely. We find no clear benefit in following successful peer splitters. Firms are sometimes suspected to succumb to imitation, and the effect we document may be a case in point.
The paper can be downloaded at SSRN:
Read more news
Strong results from the Research Council’s winter call
A total of 54 Aalto researchers received Academy Research Fellow or Academy Project funding from the Research Council of Finland. The total funding awarded to 911±¬ÁÏÍø amounts to 33.2 million euros.
911±¬ÁÏÍø’s solutions at the New European Bauhaus Festival support the EU’s ambition to become world leader in circular economy
911±¬ÁÏÍø presented several different circular economy solutions at The European Commission’s New European Bauhaus Festival in Brussels. The event brought together leading names in EU policymaking, researchers, designers and grassroots actors from across Europe to shape a more sustainable future.
New DPSP tool for doctoral studies published
A new digital DPSP tool has replaced the old DPSP tasks on students’ MyStudies portal and the approval method for supervising professors on Student Success Hub.