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44 results on '"Chhaochharia, Vidhi"'

21. Corporate Governance and Firm Value: The Impact of the 2002 Governance Rules

Author

Chhaochharia, Vidhi and Grinstein, Yaniv

Subjects
Corporate governance, Commercial law, Banking, finance and accounting industries, Business
Abstract

To purchase or authenticate to the full-text of this article, please visit this link: http://dx.doi.org/10.1111/j.1540-6261.2007.01257.x Byline: VIDHI CHHAOCHHARIA, YANIV GRINSTEIN (*) Abstract: ABSTRACT The 2001 to 2002 corporate scandals led to the Sarbanes-Oxley Act and to various amendments to the U.S. stock exchanges' regulations. We find that the announcement of these rules has a significant effect on firm value. Firms that are less compliant with the provisions of the rules earn positive abnormal returns compared to firms that are more compliant. We also find variation in the response across firm size. Large firms that are less compliant earn positive abnormal returns but small firms that are less compliant earn negative abnormal returns, suggesting that some provisions are detrimental to small firms. Article note: (*) Vidhi Chhaochharia is from University of Miami and Yaniv Grinstein is from the Johnson School of Management, Cornell University.

Published
2007

27. Sovereign Wealth Funds: Their Investment Strategies and Performance

Author

Chhaochharia, Vidhi and Laeven, Luc

Subjects
jel:G3, Asset allocation, Corporate governance, Sovereign wealth funds
Abstract

Sovereign wealth funds have emerged as an important investor of global equity, attracting growing attention. Despite concerns that sovereign wealth fund investments may serve political objectives and be in conflict with national interests, little is known about the investment objectives and performance of sovereign wealth funds. We collect new data on foreign equity investments by sovereign wealth funds. We find that sovereign wealth funds largely invest to diversify away from industries at home but that they do so predominantly in countries that share the same culture, suggesting their investment rules are not entirely driven by profit maximizing objectives. Share prices of firms respond favorably when sovereign investment funds acquire stakes, in part because these investments often take place when firms are in financial distress. However, the long-run performance of equity investments by sovereign wealth funds tends to be poor, consistent with imperfect portfolio diversification and poor corporate governance.

Published
2008

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