Frontaler Blick auf das D4 Gebäude.

Brown Bag Seminar

The Finance Brown Bag Seminar is held jointly with the Vienna Graduate School of Finance (VGSF) and serves as a presentation platform for PhD students, faculty members, and visitors. It usually takes place on Wednesdays from 12:00 to 13:00 (location tba). For further information, please contact bbs-finance@wu.ac.at

Summer Term 2022

  • June 29, 2022 / 12.00 p.m. / D3.0.218
    Philipp Lentner (Vienna University of Economics and Business)
    Title: N.N.
     

  • June 20, 2022 / 12.30 p.m. / D3.0.218
    Tobin Hanspal (Vienna University of Economics and Business & VGSF)
    Title: “Educating Investors about Dividends” with Andreas Hackethal and Samuel M. Hartzmark


    Abstract: We educate a sample of investors about the benefits of dividend reinvestment and the costs associated with misperceiving dividends as additional, free income. The intervention causes investors to upward adjust planned dividend reinvestment. In the field, these investors become more likely to reinvest their earned dividends into the same asset or into passive funds, relative to previously received dividends and a placebo treatment sample. Investors who stated that they learned the most from the intervention updated their plans and field behavior by the largest extent. Our study documents that simple, targeted, and focused educational interventions can affect downstream investment behavior.

    MS-Teams linkClick here to join the meeting
     
  • June 15, 2022 / 12.00 p.m. / D3.0.222
    Thomas Dangl (Vienna University of Technology)
    Title: N.N.
     

  • June 8, 2022 / 12.00 p.m. / D3.0.233
    Giorgio Ottonello (Nova School of Business and Economics)
    Title: "Bank connections and firms' access to the bond market"


    Abstract: Institutional investors-dominated corporate bond markets have become an increasingly important source of financing for U.S. companies. We argue that firms' access to the bond market is constrained by their bank's network of investors. Using a hand-collected dataset of aggregate portfolio transactions between a bank's securities dealer and their mutual fund clients, we map trading networks of banks' underwriters and asset managers between 1995 and 2017. We find that higher exposure to bond investors through bank connections improves a firm's access to bond financing and allows for larger bond issuances. We also show that higher demand from the bank's network of investors allows firms to lower their cost of financing. To identify the causal effect of bank connections on a firm's financing decisions, we exploit exogenous shocks to the formation of underwriter-issuer relationships and to the capital supplied by investors in the bank's network. In examining how bank connections influence financing decisions, we find that the bank's network of investors provides guaranteed demand for a firm's bonds. Our findings add to the debate on whether the existing process for raising corporate debt is an efficient mechanism for bond issuers.

  • June 2, 2022 / 1.00 p.m. / D3.0.222
    Larry Blume
    (Cornell University)
    Title: N.N.
     

  • June 1, 2022 / 12.00 p.m. / D3.0.233
    Paul Hübner (UCLA)
    Title: N.N.
     

  • May 25, 2022 / 11.00 a.m. / hybrid / TC.3.21
    Seppo Ikäheimo
    (Aalto University School of Business)
    Title: "Capital flows and short-termism – evidence from European listed companies 1992-2020” with, Arttu Lääkkölä and Vesa Puttonen

    Zoom: Click here to join the meeting
     

  • May 11, 2022 / 12.00 p.m. / TC.5.27
    Maria Kosolapova (Free University of Bozen-Bolzano)
    Title: "Estimating Time-Varying Risk Aversion from Option Prices and Realized Returns."

    Abstract: We combine risk-neutral densities from equity index options with realized index returns to estimate the market's risk aversion. Starting from a power utility framework with constant risk aversion, we extend it by more flexible stochastic discount factors. We allow for time-varying risk aversion of the marginal investor and we base our estimation as much as possible on forward-looking information. While the levels of the resulting estimates for risk aversion and expected returns are in line with the literature, we find the pricing kernel puzzle to be only an intermittent phenomenon, and our results point to pro-cyclical risk aversion.
     

  • May 5, 2022 / 12.15 p.m. / TC.4.04
    Rüdiger Weber (Vienna University of Economics and Business & VGSF)
    Title: "Equity Duration, Cash-flow Timing and the Term Structure of Equity” with Dominik Walter

    Abstract: We study the relation between equity duration, cash-flow timing and stock returns. Established measures of equity duration mix up information on the level of discount rates (expected returns) and the timing of cash flows. Regardless of the equity term structure, duration is a monotonically decreasing function of each stock's true market discount rate. Hence, the relation between mean returns and empirical duration measures relying on market-price information is mechanically negative. We therefore introduce new measures of pure cash-flow timing and find an unconditionally flat relation between timing and returns. In line with the qualitative predictions of standard, consumption-based asset pricing it turns out that in recessions (expansion episodes), there is a negative (positive) relation between cash-flow timing and average stock returns.
     

  • April 20, 2022 / 12.00 p.m. / TC.4.01
    Elias Rantapuska
    (Aalto University School of Business)

    Title: “The Banker in Your Social Network” with Samuli Knüpfer and Theresa Spickers

    Abstract:We study how bankers affect the financial decisions of their social connections. Comprehensive register data allow us to track transitions into the finance industry and to relate these transitions to the individual’s family members’ participation in financial markets. An identification strategy utilizing within-individual variation reveal a strong positive effect of a banker on the participation of her family members. This effect is larger for individuals who do not participate in financial markets, for low-income and low-education individuals, and for riskier asset classes, and it declines in the social distance to the family member. Our results suggest financial expertise travels in social networks. This insight is relevant for understanding the design of policies attempting to improve financial literacy, the impact and value of financial advice, and the value of expertise in financial markets.

    Keywords: Social interaction, peer effects, knowledge spillovers, financial advice

  • April 20, 2022 / 12.00 p.m.
    Alfred Lehar (University of Calgary Haskayne School of Business)
    Title: Decentralized Exchanges” with Christine A. Parlour.

    Abstract: Uniswap is one of the largest decentralized exchanges with a liquidity balance of over 3 billion USD and daily trading volume of over 700 million USD. It is designed as a system of smart contracts on the Ethereum blockchain, and is a new model of liquidity provision, so called automated market making. We collect and analyze data on all 19 million Uniswap interactions from 2018 to the current time. For this new market, we characterize equilibrium liquidity pools and provide evidence that they are stable. We compare this automated market maker to Binance and establish absence of arbitrage and show conditions under which the AMM dominates a limit order market.