Essays on corporate finance and investment
Abstract
Details
- Title: Subtitle
- Essays on corporate finance and investment
- Creators
- Jue Wang
- Contributors
- Erik Lie (Advisor)Shagun Pant (Advisor)Tong Yao (Committee Member)Amrita Nain (Committee Member)Yiming Qian (Committee Member)
- Resource Type
- Dissertation
- Degree Awarded
- Doctor of Philosophy (PhD), University of Iowa
- Degree in
- Business Administration
- Date degree season
- Summer 2020
- DOI
- 10.17077/etd.005604
- Publisher
- University of Iowa
- Number of pages
- xii, 140 pages
- Copyright
- Copyright 2020 Jue Wang
- Language
- English
- Description illustrations
- color illustrations
- Description bibliographic
- Includes bibliographical references.
- Public Abstract (ETD)
Human capital is considered fundamental and crucial for economic growth in the modern knowledge-based economy. In this dissertation, I explore several aspects of human capital and examine its financial implications. First, we focus on a key dimension of human capital, diversity, and examine the relationship between inventor diversity and stock returns. We find that the market does not immediately price the full value of inventor diversity. Firm with diverse inventors have significantly superior stock returns than firms with more homogeneous inventors. Second, we examine the impact of medical marijuana legalization on firm value and performance using the staggered passage of medical marijuana across U.S. states. We find that the legalization of medical marijuana has a positive impact on firms, likely by affecting the human capital of firms.
Another part of my dissertation comprehensively examines and contrasts different types of mergers and acquisitions. Mergers could be between rival firms (horizontal), between supplier and customer firms (vertical) or between firms in unrelated industries (diversifying). I find significant difference across horizontal, diversifying, and vertical mergers in their merger activity and value creation, which should be carefully considered in M&A research.
- Academic Unit
- Tippie College of Business
- Record Identifier
- 9983987896202771