Institutional Investors: Control, Liquidity, and Systemic Risks

Friday and Saturday, April 19-20, 2013, Center for the Economic
Analysis of Risk (CEAR) and Department of Finance, J. Mack Robinson
College of Business, Georgia State University

GENERAL INFORMATION: The roles that institutional investors play in financial markets are constantly evolving. Increasingly they exert greater influence on corporate decisions and control, and have a larger impact on market liquidity and systemic risk. To shed new light on these important issues, this conference brings together a group of academics who have conducted significant research related to these topics as well as the underlying incentives of these agents. The conference program covers theoretical, empirical, and behavioral approaches to better understand the issues, and integrate perspectives from both the corporate finance and asset pricing areas. In addition to facilitating discussions among academics, the conference will also encourage a dialogue between leading researchers and practitioners by holding a panel discussion that involves participants from both sides.

ORGANIZERS AND CONTACT INFORMATION: Vikas Agarwal (Georgia State University) and Wei Jiang (Columbia University) are the organizers of this workshop. The conference is funded by the Center for the Economic Analysis of Risk (CEAR, cear.gsu.edu) and the Department of Finance (robinson.gsu.edu/finance), both located in the J. Mack Robinson College of Business at Georgia State University.

Contact Vikas Agarwal at vagarwal@gsu.edu or Wei Jiang at wj2006@columbia.edu about the program of the workshop, and Mark Schneider at cear@gsu.edu with questions about participation and logistics.

LOCATION: J. Mack Robinson College of Business, Georgia State
University: 35 Broad Street; Atlanta, GA 30303

PROGRAM:

Friday, April 19, 2013

Session 1 - 1:00 - 3:00 p.m.
Session Chair: Di Li, Georgia State University

"Informed Trading and High Compensation in Finance"
Vincent Glode, University of Pennsylvania
Richard Lowery, University of Texas Austin
Discussant: Uday Rajan, University of Michigan

"Incentives and Endogenous Risk Taking: A Structural View on Hedge Fund Alphas"
Andrea Buraschi, University of Chicago and Imperial College London
Robert Kosowski, Imperial College London
Worrawat Sritrakul, Imperial College London
Discussant: Mark M. Westerfield, University of Washington

Session 2 - 3:20 - 5:20 p.m.
Session Chair: Jingling Guan, Georgia State University
"A Matter of Style: The Causes and Consequences of Style Drift in Institutional Portfolios"
Russ Wermers, University of Maryland
Discussant: Nicolas P.B. Bollen, Vanderbilt University

"Do Market Participants Care About Portfolio Disclosure? Evidence from Hedge Funds' 13Fs"
Stephen Brown, New York University
Christopher Schwarz, University of California Irvine
Discussant: Clemens Sialm, University of Texas Austin

Session 3 - 5:40 - 6:15 p.m.
Moderator: Vikas Agarwal, Georgia State University

Panel Discussion
Panelists: Michael W. Masters (Masters Capital Management) and George
E. Case, III (Ned) (GMT Capital Management)

Welcome Reception - 6:45 - 9:45pm

Welcome from the Dean of GSU's Robinson College of Business - Fenwick Huss
Keynote from the Securities and Exchange Commission (SEC)
Commissioner - Luis Aguilar

Saturday, April 20, 2013

Session 4 - 9:00 - 11:00 a.m.
Session Chair: Baozhong Yang, Georgia State University

"No News is News: Do Markets Underreact to Nothing?"
Stefano Giglio, University of Chicago
Kelly Shue, University of Chicago
Discussant: Diego Garcia, University of North Carolina Chapel Hill

"The Cost of Capital for Alternative Investments"
Jakub W. Jurek, Princeton University
Erik Stafford, Harvard Business School
Discussant: Jules van Binsbergen, Stanford University

Session 5 - 11:20 a.m. - 12:20 p.m.
Session Chair: Zhen Shi, Georgia State University

"The Impact of Creditor Control on Corporate Bond Pricing and Liquidity"
Peter Feldhutter, London Business School
Edith Hotchkiss, Boston College
Oguzhan Karakas, Boston College
Discussant: Raghu Sundaram, New York University

Session 5 - 1:30 - 3:30 p.m.
Session Chair: Mark Chen, Georgia State University

"Hedge Fund Activists: Do They Take Cues from Institutional Exit"
Nickolay Gantchev, University of North Carolina Chapel Hill
Chotibhak Jotikasthira, University of North Carolina Chapel Hill
Discussant: Richard Mathews, University of Maryland

"A Macroeconomic Framework for Quantifying Systemic Risk"
Zhiguo He, University of Chicago
Arvind Krishnamurthy, Northwestern University
Discussant: Lixin Huang, Georgia State University