Seminars
The Discipline of Finance seminar organiser is Graham Partington.
Italics for the presenter’s name indicates a presenter from the Finance Discipline.
All seminars run from 11.00 to 12.30, except as noted they are on a Friday. They are in Room 215, Building H69, except for the two presentations marked as in the Darlington.
Semester 1
| 21 February | |
| Speaker: | Professor Stephen Penman |
| Title: | The Pricing of Earnings and Cash Flows and an Affirmation of Accrual Accounting |
| Venue: | Darlington Meeting Room 6, Darlington Centre |
| Abstract: | Under accrual accounting, earnings add to shareholders’ equity. However (we show), under accrual accounting cash flow generated by a business has no effect on shareholders’ equity, but reduces the book value of net assets employed in business operations. In short, accrual accounting rules prescribe that earnings add to shareholder value but cash flow is irrelevant to the valuation of equity. This paper documents that the stock market prices equity shares according to this prescription. Earnings are priced positively but, given earnings, a dollar more of free cash flow from a business – cash from operations minus cash investment – is, on average, associated with approximately a dollar less in the market value of the business, and has no association with changes in the market value of the equity claim on the business. Further, controlling for the cash investment component of free cash flow, “cash flow from operations” also reduces the market value of the business dollar-for-dollar, and is unrelated to the changes in market value of the equity. |
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| About the Speaker: | Professor Penman’s research focuses on financial statement analysis and the use of accounting information in equity valuation. Prior to his appointment at Columbia, he held the L. H. Penney Chair at the University of California, Berkeley. He has published numerous papers on accounting and equity valuation and has received the AICPA/American Accounting Association Award for notable contributions to the literature. He is author of Financial Statement Analysis and Security Valuation, published in 2001 by Irwin/McGraw-Hill, for which he received the Wildman Medal. Penman serves as co-director of the Center for Excellence in Accounting and Security Analysis at the Columbia Business School and also as managing editor of the Review of Accounting Studies. |
| 3 April | |
| Speaker: | Marc Kilgour, Wilfrid Laurier University |
| Title: | To Share or To Fight? A Strategic Analysis |
| 18 April | |
| Speaker: | Professor Terrance Odean, Haas School of Business, University of California at Berkeley. |
| Title: | TBA |
| 2 May | |
| Speaker: | Balasingham Balachandran, Monash University |
| Title: | Choice of Seasoned Equity offerings: Renounceability, Control dilution and Underwriting status - New Evidence |
| 22 May | |
| Speaker: | Dick van Dijk, Erasmus University |
| Title: | Getting the Most Out of Macroeconomic Information for Predicting Stock Returns and Volatility |
| 13 June | |
| Speaker: | Dr Katrina Ellis, Head of Research, APRA |
| Title: | TBA |
| TBA | |
| Speaker: | Renee Adams, University of Queensland |
| Title: | TBA |
Semester 2
| 25 July | |
| Speaker: | Peter Pham |
| Title: | Strategic Order Submission and Cancellation in Pre-Opening Periods and its Impact on Price Discovery: The Case of IPO Firms |
| Time: | 11am |
| Venue: | Room 215, Economics and Business Building (H69) |
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| 1 August | |
| Speaker: | Graham Partington |
| Title: | What is Wrong with Capital Budgeting and Just About Everything Else |
| 8 August | |
| Speaker: | David Gallagher |
| Title: | The Value of Alpha Forecasts in Portfolio Construction |
| 13 August | |
| Speaker: | Elaine Hutson |
| Title: | Openness and Foreign Exchange Exposure: A Firm-level Multi-country Study |
| Venue: | Darlington Room 7 |
| Abstract | We examine the relation between economic openness and foreign exchange exposure for a sample of 3,788 firms from 23 developed countries. We find that the more open the economy, the more exposed are its firms to exchange rate movements, and this relation holds after controlling for country-level governance variables, and size, industry and several financial variables at the firm level. Consistent with prior studies, we find a significant inverse relation between exchange exposure and firm size. We also find a strong inverse relation between a firm’s exchange exposure and the extent of creditor protection in the country in which the firm is based. This is consistent with managers acting to reduce the likelihood of financial distress in countries in which bankruptcy costs are high. |
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| 15 August | |
| Speaker: | Petko Kalev |
| Title: | Towards a Flexible Price Limit System |
| 22 August | |
| Speaker: | Colm Kearney |
| Title: | Firm-level Internationalisation and the Home Bias Puzzle |
| 29 August | |
| Speaker: | David Johnstone |
| Title: | A Short Comparison of Mean-Variance and Expected Utility |
| Venue: | Darlington Room 7 |
| 5 September | |
| Speaker: | Graham Bornholt |
| Title: | The Two Year Effect |
| 12 September | |
| Speaker: | Max Stevenson |
| Title: | Identifying and Predicting Financial Distress in Hedge Funds |
| 19 September | |
| Speaker: | Philip Gharghori |
| Title: | Default Risk Prediction: A New Non-linear Approach |
| 26 September | |
| Speaker: | James Cummings |
| Title: | Price Formation and Liquidity Surrounding Large Trades in Interest Rate and Equity Index Futures: Evidence from the Sydney Futures Exchange |
| 10 October | |
| Speaker: | Olan Henry |
| Title: | The Stock Market’s Reaction to Monetary Policy |
| 17 October | |
| Speaker: | Alexander Ljungqvist |
| Title: | Informational Hold-up and Performance Persistence in Venture Capital (provisional title) |
| 24 October | |
| Speaker: | Peter Buchen |
| Title: | The Mother of All Binaries |
| 31 October | |
| Speaker: | Hui Zheng |
| Title: | The Short-term Market Impact of an Increase in Transaction Tax |
| Venue: | Darlington Room 6 |