Seminar in Brazil

Tomorrow I'll present a fresh paper, joint with Murillo Campello (Cornell) at PUC-RJ. It's so new that the paper hasn't even been uploaded to SSRN yet!

Anyway, here are the details and short (and very tentative) abstract:

Corporate Cash Holdings and the Market for Equity Lending

• Local: Sala F200
• Data: 16/12/2014
• Horário: 17:00 hrs

The precipitous growth of institutional ownership has changed the makeup of corporate equity ownership and trading activity. Institutions are the also the largest lenders in the equity lending market. Using quasi-experimental methods within a precautionary savings framework, we show that companies save more cash and repurchase more stocks when more stocks are available for shorting.A one-interquartile range (IQR) increase in lendable supply is associated with a 1.3% increase in cash holdings in the subsequent quarter, equivalent to 5.9% of the IQR variation observed for cash holding.