Are liquidity considerations limited to asset pricing or do they have a broader relevance in the corporate finance context? Dimitrios Vagias explores the role of liquidity in the decision and the particular type of equity offering performed.
“Never have stock markets been as volatile as during the financial crisis,” argues Roy Verbeek, who is a second-year Research Master student at ERIM. The NWO awarded him a Talent Grant to study the volatility of assets during a three-year PhD project at ERIM.
Dr Dion Bongaerts, Associate Professor of Finance, received a Veni grant of €250,000 for his research on credit rating agencies (CRAs) from the Netherlands Organisation for Scientific Research (NWO).
Mathijs van Dijk’s paper “The Implied Cost of Capital: A New Approach” (co-authored with Kewei Hou and Yinglei Zhang) proposes a new proxy for a firm's expected returns (or cost of equity capital) based on a firm’s “Implied Cost of Capital” (ICC) – defined as the internal rate of return that equates the firm’s stock price to the present value of expected future cash flows. The ICC has been developed in the early 2000s and has gained considerable popularity in academic studies and in investment management applications.
Mathijs van Dijk's paper "Understanding Commonality in Liquidity Around the World" (co-authored by Andrew Karolyi and Kuan-Hui Le) has been accepted for publication in the Journal of Financial Economics. This paper investigates the extent to which financial market liquidity is correlated across different stocks within 40 stock markets around the world.
ERIM
is the joint research institute of Rotterdam School of Management, Erasmus University and the Erasmus School of Economics, Erasmus University Rotterdam.
