Abhiroop Mukherjee
Associate Professor
Department of Finance
Hong Kong University of Science & Technology
My research is outlined below. Comments and questions welcome -- please email me.



Working Papers:


Law and policy issues:


                1. Inside Brokers (with Frank Weikai Li and Rik Sen )


What is it about? We identify the stock broking house that firm insiders trade through, and show that analysts and mutual fund managers affiliated with such “inside brokers” have a distinct information advantage over others, even after the trade is publicly disclosed. Our results challenge the common perception that information asymmetry arising from insider trading is only acute before trade disclosure. Unlike many other sources of comparative information advantage, the effect we document is stronger in more recent times, including after Regulation Fair Disclosure. We show that one source of the broker’s superior information is his knowledge of the nature of a trading instruction, which facilitates inference about the trade’s information content. 


Presentations: EFA, FIRS, ABFER, CICF, University of Miami, University of New South Wales, Chinese University of Hong Kong, Indian School of Business, ... 

Upcoming: AFA 2018

                        Internet Appendix

             2.  Are Control Rights Less Valuable When Shareholders Lack Information? 

 

What is it about? Activists and journalists argue that allocation of greater control rights to shareholders mitigates the classic agency problem in corporations. I show that the effectiveness of such control rights depends on the cost of acquiring information on a firm. These rights have a positive effect on firm outcomes when information costs are low, but little or no effect when such costs are high. I exploit two natural experiments to provide causal evidence on this interaction: exogenous variation in shareholder rights resulting from Delaware Court rulings in 1995; and, exogenous variation in information costs resulting from brokerage mergers.


Presentations: EFA, FIRS,  Yale, HKUST Corporate Finance Symposium,... 



Behavioral decision making:


                3. The Effect of Superstar Firms on College Major Choice (with Darwin Choi and Dong Lou)


What is it about? Past salient, extreme events in an industry, as proxied by cross-sectional skewness in stock returns or in favorable news coverage, are associated with a disproportionately larger number of college students choosing to major in related fields, even after controlling for the average industry return. This tendency to follow the superstars, however, results in a temporary over-supply of human capital.

 


Revised version of 'Salience and Education Choice'.


Presentations: Stanford (SITE 2017), LSE, Toulouse School of Economics, EFA, Adam Smith Conference 2017, CEMFI Madrid, Hong Kong University, Chinese University of Hong Kong, ... 

Upcoming:  AEA (2018)




Publications:

Law and policy issues:

                   1. Do Debt Contract Enforcement Costs Affect Financing and Asset Structure?  (with Radhakrishnan Gopalan and Manpreet Singh)

                                     -- Review of Financial Studies 29 (10), 2774-2813, October 2016.



                    2. Do Corporate Taxes Hinder Innovation? (with Manpreet Singh and Alminas Zaldokas)
                                   -- Journal of Financial Economics 124 (1), 195–221, April 2017.

                            Cato Institute Research Brief on this paper

                           HKUST IEMS Research Brief on this paper

                                  New Product Introductions (NPI) Data:        Brief Description & Conditions for Use         Excel data file

 
Behavioral decision making:

                 3. Prospect Theory and Stock Returns: An Empirical Test (with Nicholas Barberis and Baolian Wang)

                              --Review of Financial Studies 29 (11), 3068-3107, November 2016.


                 4. Learning About Mutual Fund Managers (with Darwin Choi and Bige Kahraman)

                              -- Journal of Finance 71 (6), 2809-2859, December 2016.




Work in Progress:

Law and policy issues:

                Roads and Loans (with Sumit Agarwal and S. Lakshmi Naaraayanan)



Behavioral decision making:


                New Product Innovations and the Stock Market (with Tomas Thornqvist and Alminas Zaldokas)

                Do Mutual Funds Cater to Time-varying Investor Preferences for Styles? (with Usman Ali)



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Jul 16, 2017, 3:50 AM
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Sep 19, 2016, 12:59 AM
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Nov 29, 2016, 7:27 AM
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Dec 8, 2016, 12:15 AM
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Oct 1, 2016, 10:25 PM
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Sep 12, 2017, 3:31 AM
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Nov 20, 2016, 9:34 PM
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Sep 15, 2017, 1:28 AM
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Abhiroop Mukherjee,
Sep 15, 2017, 1:28 AM
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Oct 4, 2016, 3:04 AM
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Abhiroop Mukherjee,
Mar 27, 2017, 5:18 AM