Topic: Determinants of Idiosyncratic Volatility for Biotech IPO Firms
Presenter：Dr. Qian Sun， Professor of Finance，Director, Institute for Financial & Accounting Studies, Xiamen University
Time: October 12, 2007（Friday）3：00—4：30 PM
Venue: Room 513, Jiageng Bld 2
Chair： Yujun Wu, assistant professor in finance, IFAS
Abstract：
In this paper we examine the cross-sectional determinants of idiosyncratic volatility of biotech IPO firms. We extend current research in two directions. First, we test whether CEO stock options impact on idiosyncratic volatility. Second, we test new hypotheses that relate some easily identifiable managerial characteristics to idiosyncratic volatility. We find that the CEO stock options, resource dependence capabilities, and the age of board members help predict idiosyncratic volatility. Our results are robust for the various measures of idiosyncratic volatility and model specifications.
Presenter Introduction：
Dr Sun’s interests are in the areas of corporate finance, emerging equity markets, and China-related issues. He has demonstrated proficiency in financial and economic research with a book and many journal papers.
Download: paper